Lot 1, Mannington Road Acacia Ridge, QLD

“Acacia Ridge 5-Bedroom SMSF Rooming House with 8.5% Yield & $108.4k Gross Income in Brisbane’s High-Demand Inner South”

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Investment Highlights

• Priced at $1,484,671 with $108,457 p.a. gross rent already appraised – that’s a strong 8.54% gross yield from day one, with weekly rents averaging $415–$425 across five self-contained studios.
• SMSF-ready rooming house design: Fully compliant 5-studio layout tailored for co-living investors with immediate income security.
• Located in Acacia Ridge, a key gentrifying suburb 13 km from the Brisbane CBD, with low competition and tight 2.35% vacancy.
• Population & job-growth tailwinds: Strategic access to Brisbane’s industrial heartland, with local jobs in logistics, trade, and health services.
• Undersupplied rental market: only 10 co-living rooms advertised vs 62 room seekers (June 2025), equating to 6:1 demand ratio.
• Projected 10-year capital growth of 7.2% p.a. lifts potential value to nearly $3 million in 20 years.

Key Financials

Purchase price: $1,484,671
Configuration: 5 self-contained studios | 5 bathrooms | 1 shared kitchen/living | 5 car spaces
Land / house size: 300 m² / 210 m²
Rental appraisal: $2,080 pw across 5 studios | $108,457 p.a. gross (incl. parking)
Annual gross income: $108,457
Gross yield: 8.54%
Vacancy rate: ≈2.35% (June 2025, Acacia Ridge)
Est. expenses (annual): $26,827.50 (rates, insurance, PM, maintenance)
Est. net cashflow: $5,890.64 p.a. ($113.28 pw)
Loan: 70% LVR | $1,039,270 @ 6.7% p.a.
Monthly repayment: $5,802
Depreciation benefit: ~$9–11k p.a. (rooming houses typically attract strong depreciation – QS report recommended)

Location & Growth Drivers

Acacia Ridge is a well-established inner-south Brisbane suburb just 13 km from the CBD, increasingly popular for its affordability, proximity to industrial job hubs, and minimal competition for co-living stock. Suburb metrics point to rising tenant demand (room seeker growth +67.57% over 12 months) and a limited pipeline of supply – with just 10 rooms listed across the whole suburb. Median house rents have risen 30.95% over 3 years (now $550 pw), and median house prices are up 11.30% over 12 months to $790,000, suggesting strong capital flow into the area. Local projects such as commercial redevelopments, school upgrades, and improved public transport accessibility are supporting gentrification. With Acacia Ridge tenants typically comprising tradespeople, aged care/health workers, and students, demand for affordable studio-style housing remains resilient.

Build Specification (Turnkey)

• Fixed-price turnkey contract with full landscaping (120 m²) and fencing (60 lm)
• 5 individually keyed studios, each with own ensuite and A/C
• Block-out blinds, LED lighting, ceiling fans in every room
• 900 mm kitchen appliances (shared space)
• 6 x digital door locks and safety screening to all windows/doors
• 13 kW photovoltaic solar system reduces electricity outgoings
• Barrier safety screens, smoke alarms (legislation compliant)
• Solid-core internal doors, mirrored wardrobes with shelving & rails
• 2 x 250L electric hot water systems
• Split system A/C to all studios
• Concrete driveways, alfresco & drying area, letterbox and 2 clotheslines

Why This Deal Stacks Up

1. Rare SMSF-compatible rooming house with sub-$1.5m price and full depreciation eligibility.
2. 8.5% yield and strong suburb fundamentals (high room demand, <2.4% vacancy, limited supply).
3. 7.2% forecast capital growth offers equity uplift and cashflow compounding over time.
4. Turnkey build & fixed pricing ensures minimal surprises and streamlined finance approvals.
5. Compliant and insurable: studio design aligned with council and fire regulations.

Risks & Mitigations

• Studio vacancy risk: current room-seeker-to-room ratio is 6:1 – market imbalance supports high occupancy.
• Rooming compliance: turnkey inclusions meet code – ensure proper insurance coverage is maintained.
• Rate rise sensitivity: 70% LVR @ 6.7% already factored in; additional buffers can be added to cashflow.
• Exit strategy: growing interest in co-living resale, supported by high yield and passive structure.