Ballarat Student Share Investment

A Cash-Flow-Focused Model Under Conservative Assumptions

Designed to remain cash-flow positive even with higher interest rates and rental stress

This is an income-focused model, not a short-term capital growth strategy.

Get the Detailed ROI Simulation

How This Investment Is Evaluated

This investment is evaluated based on a single core question:

Can the property generate stable, positive cash flow after loan repayments under conservative assumptions?

Rather than relying on optimistic rental growth or short-term resale strategies, this model is structured using:

  • •Market-median rental assumptions
  • •Higher-than-average operating costs
  • •Stress-tested interest rate scenarios

The objective is long-term income stability, not speculation.

Property Overview and Key Assumptions

Ballarat Student Share Property

Property Details

  • LocationBallarat, Victoria
  • Purchase PriceAUD 662,072
  • Layout4-bedroom house
  • Operating ModelStudent share (5 occupants)

Financing Assumptions

  • Deposit35%
  • Loan-to-Value Ratio65%
  • Interest Rate (Base Case)6.0%
  • Loan Term30 years

Rental Assumptions (Conservative)

Rental Breakdown

Private roomsAUD 300 × 3 occupants
Shared master roomAUD 250 × 2 occupants
Total rentAUD 1,400 per week

These assumptions are based on surrounding student rental market ranges (approximately AUD 280–320 per week per room).

Median market values are intentionally used instead of optimistic figures.

Cash Flow and ROI Summary

Base Case

Annual net cash flow after loan repayment

~AUD +24,000

Estimated cash-on-cash return

~9.8%

Stress Test Results

  • Interest rate +1%: cash flow remains positive (~AUD +20,000/year)
  • Rental income -10%: cash flow remains positive (~AUD +17,000/year)
  • Both scenarios combined: cash flow remains positive (~AUD +13,000/year)

Note: Full calculation details and assumptions are disclosed in the downloadable PDF.

Estimated Project Timeline

This project is assessed using a total timeline approach rather than fixed construction start dates.

Estimated overall timeframe from contract to rental income commencement:

Approximately 12–15 months

Typical phases include:

  • •Contract execution, design finalization, and approvals
  • •Construction period (approximately 8–10 months)
  • •Handover and tenant placement preparation

This timeline is indicative only and does not represent a construction guarantee.

Who This Investment Is Suitable For

Suitable For

  • ✓Investors prioritizing income and cash flow
  • ✓Those comfortable evaluating assumptions independently
  • ✓Investors who understand student share housing as an operational business

Not Suitable For

  • ✗Investors seeking immediate rental income
  • ✗Fully passive, hands-off investors
  • ✗Short-term resale or speculative buyers

Primary Risk Consideration

The primary risk is the long-term operational stability of a five-person student share arrangement within a four-bedroom property.

Shared-room occupancy requires appropriate tenant matching and active management.

For this reason, rental assumptions and operating costs have been set conservatively from the outset.

Request the Detailed ROI Simulation

A detailed ROI simulation PDF is available for investors who wish to review the full assumptions and calculations behind this model.
No sales calls will be made.