07/08/2026
Every time the RBA moves rates up, negatively geared investors feel it immediately. Repayments go up, rent doesn't move fast enough, and the monthly shortfall quietly grows. There's no buffer. The model was already running on a loss before rates moved.
At 10%+ gross yield, coliving creates an income buffer that traditional investment properties simply don't have. The weekly income is high enough to absorb rate movements without tipping into negative cashflow territory.
A Perth coliving property generating $2,100 to $2,290 a week gross has significant room to absorb rate rises before the cashflow position is threatened. A Melbourne coliving property generating around $2,070 a week tells the same story. Different market, same structural resilience.
Compare that to a Melbourne house on a traditional tenancy earning $550 to $600 a week at 3.7% gross yield. One rate rise and the shortfall deepens. Two and it becomes genuinely uncomfortable.
This is why our investors didn't need to stress about the last three RBA decisions. The income was high enough that rate movements changed the net position at the margins not the fundamental viability of the investment.
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