Lot 2602 (16) Fairmont Cres, Fraser Rise, VIC

“Fraser Rise Co-Living Investment – $42.6k Income, ~5.5% Yield, 5-Year Rent Guarantee”

Property analysis by:

Investment Highlights

• Package price: $779,900 turnkey townhouse with co-living specification.
• Income stability: independent guidance $840 per week with an optional 5-year rent guarantee offered by the nominated co-living manager.
• Yield uplift from design: 3 ensuited bedrooms in a room-by-room model designed to outperform single-tenancy townhouses on gross rent per m².
• Tenant appeal: modern finishes, climate control, quality inclusions, and furnished-pack support shorten days-to-let and support premium room rates.
• Growth corridor: Fraser Rise PSP catchment with access to Watergardens retail/rail and major arterials, supporting long-run demand.

Key Financials

Purchase price: $779,900 (Turnkey package)
Configuration: 3 Bedrooms, 3 Bathrooms, 1 Car (co-living layout)
Rental appraisal: $840 per week ($42,631 p.a.)
Gross yield: ~5.5% 
Furniture pack: curated co-living set; commonly structured with a partial inclusion and balance paid from rent
Finance example: 80% LVR, 6.00% interest assumption; co-living PM ~8%–9% of collected rent

Location & Growth Drivers

Fraser Rise sits in Melbourne’s north-west growth corridor, benefitting from proximity to Watergardens town centre and station, established employment nodes, and arterial connectivity (Melton/Calder/Western). The suburb’s family-friendly amenity, schools and open-space network support durable tenant demand. Co-living’s value proposition targets professionals and key workers seeking affordable, well-located private ensuites with quality shared spaces.

Build Specification (Co-Living)

• Purpose-built co-living layout: 3 ensuited bedrooms plus open-plan living and quality shared kitchen.
• Turnkey inclusions: landscaping, blinds, flooring, stone benchtops, stainless appliances, LED downlights.
• Comfort & efficiency: split-system climate control, insulation per energy report, remote garage.
• Compliance-minded design suited to standard residential use for three tenants (no RH licence required under typical VIC thresholds).

Why This Deal Stacks Up

1. Income resilience: multiple rental streams via three ensuites; the rent-guarantee option stabilises cashflow against vacancy/arrears shocks.
2. Operational leverage: specialist co-living management reduces friction, enforces house rules and staggers lease expiries to sustain occupancy.
3. Demand depth: corridor demographics and access to transport/retail underpin ongoing room demand at affordable weekly price points.
4. Capex discipline: turnkey delivery limits variation risk; optional furniture pack accelerates time-to-income.

Risks & Mitigations

• Interest-rate sensitivity: cashflow depends on debt costs at 80% LVR. Mitigation: target upper appraisal rent, consider IO structures, and use the rent-guarantee to stabilise early years.
• Vacancy concentration: any single room vacancy impacts income. Mitigation: active leasing cadence, strong house rules, and staggered lease renewals.
• Regulatory settings: VIC limits standard residential to three tenants without a rooming-house licence. Mitigation: remain within the three-tenant configuration, or obtain RH licensing if strategy changes.
• Operating-cost creep: utilities and PM fees can erode yield. Mitigation: bundle utilities with caps, review PM fee schedule annually, and implement preventative maintenance.