Rooming Houses: A High-Yield Asset Class Solving a Real Housing Need

As housing affordability continues to tighten across Australia's urban centres, one type of property is quietly solving two major challenges at once: rooming houses, also known as micro apartments.

These compact, purpose-built dwellings are gaining media attention—and for good reason. They offer investors strong, consistent cash flow returns, while also addressing a critical social need: providing affordable, well-located accommodation near jobs, public transport, and essential services.

Yet despite their growing relevance in today’s housing landscape, rooming houses have long faced a tough road when it comes to finance. Many traditional banks approach this asset class with extreme caution, if they touch it at all—often due to outdated risk models or rigid lending policies that don’t reflect the modern demand for affordable urban living.

Our Approach Since 2018

At Blue Streak, we’ve taken a different approach.

Since 2018, we’ve proudly backed developers and investors working in the rooming house space. Our flexible lending options, starting from 10.49% p.a., and our ability to fund up to 75% LVR, have allowed our clients to bring dozens of projects to life—often running

ultiple developments concurrently.

Where We’ve Funded Projects

We’ve supported successful builds and refinances across a wide variety of suburbs and cities, including:

• Queensland: Deagon, East Brisbane, Clayfield, Acacia Ridge, Moorooka, Coopers Plains, Salisbury, Banyo, Chermside, Boondall, Inala, Darra, Oxley, Jindalee, Bracken Ridge, Morayfield, Caboolture South, Lota

• Victoria: Melton, East Geelong

• South Australia: Port Noarlunga

  
  

What We Fund

Our lending options cover the full project lifecycle:

• Site Acquisition – Get started with confidence knowing your land purchase is backed

• Construction – We fund full builds and can include furnishing costs to deliver turnkey outcomes

• Refinance – Whether it's moving on to the next deal or holding the asset long-term, we offer solutions for completed properties

• Second Mortgage Position – We’re also able to lend behind a bank first mortgage, up to 75% LVR

Looking to capitalise on this resilient, high-yield sector?

Get in touch with the Blue Streak team today to discuss your next rooming house or micro apartment project.