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Property income while you’re still working: is a nine-bed the right next step, and where do you start?

· Yannick Ieko

Answering: I want property income while I am still working. How do I decide whether a purpose-built nine-bed co-living path is the right next step, and where should I start learning?

Estimated reading time: 13 min read

If you do not have at least $600,000 in cash, usable equity or both, a purpose-built nine-bed is not your next step. If you do, and what you want is income that arrives while you are still working, rather than after you stop, the next step is to learn how the building produces that income before you talk to anyone about buying one. The Harmony Group starts investors with a free co-living education program, and a one on one with a director opens only after you have worked through it.

The steps below take you from that first fit check to the point where a conversation is worth having. Each one is something you can do yourself, in order, without committing to anything.

Key Insights

  • Check the capital floor first: $600,000 in cash, usable equity or a combination.
  • Learn where nine-bed income comes from: nine room rents on one title, shown as gross figures with their labels.
  • Build the net picture with your accountant and broker, using your own loan and tax position.
  • Start with the free education program. The director conversation comes after it.

Table of Contents

Step 1: Decide what income while working means for you

Start by writing down what you want the property to do. Moneysmart’s guidance is that buying an investment property should be part of your investment plan, and should take your goals and your tolerance for risk into account.

For the investor this path is built for, the goal is specific: income that arrives while you are still working, rather than after you stop. That is a different goal from holding a property mainly for a future sale, or from holding one that relies on your salary to cover a shortfall each month. A property that pays rent from nine leases is designed for the first goal. A property where rent does not cover costs suits a different plan.

Be honest about the trade-offs you are willing to make for that income. A nine-bed is one building on one title, run under rooming house rules by a specialist manager. It is a specialised investment, and it suits people who want income from the building more than they want the simplicity of a single tenancy.

  • Write one sentence on what the property is for.
  • Note whether you need it to pay its own way from the start, or whether you can carry costs for a period.
  • Note how much of your wealth you are comfortable holding in one building.

Step 2: Confirm your capital position

Harmony’s nine-bed requires a minimum of $600,000 in cash, usable equity, or a combination of both. That is the first filter, and it saves everyone time to apply it early.

Usable equity is the amount a lender would let you borrow against your property, which is usually less than the gap between its value and your loan. An online calculator gives you an estimate. Your mortgage broker gives you a number you can plan with. The difference between the two is set out in what your usable equity could actually do.

If you already know you have the capital and it is sitting idle, who can help you put $600,000 into an income-focused property walks through the people you are likely to need.

  • Ask your broker for a usable equity figure, in writing, before you shortlist anything.
  • Add any cash you are prepared to commit.
  • If the total is under $600,000, stop here. This path is not your next step yet.

Step 3: Learn where the income comes from

Harmony’s purpose-built nine-bed is one dwelling of nine rooms, nine bathrooms, single storey, with shared living space. Nine people live in it, each on their own lease, and you own the whole building. The income comes from nine rents instead of one.

Average figures based on most recent projects: around $380 a room a week, about $3,442 a week across nine rooms, and $179,010 a year in gross rental income, on a base project cost of $1,574,000 ($1,650,250 including additional considerations). The $380 is rounded; the actual average is $382.50 a room, and $382.50 x 9 rooms x 52 weeks = $179,010. On the base project cost, the gross yield is 11.36%, based on recent acquisitions.

In the same figure set, a standard investment property at the same $1.5 million price rents for around $865 a week, or $45,000 a year, a 3% gross yield. Average figures based on most recent projects.

For the longer view, 10.8% is the historical average gross yield across The Harmony Group’s delivered projects. Read it as a record of finished buildings, separate from the recent-acquisitions figure. Neither is a forecast for a building you have not bought.

Step 4: Work out what sits between gross and what you keep

Every figure in Step 3 is gross. What you keep depends on costs, and on how you fund the purchase. Moneysmart lists the ongoing costs of an investment property: council and water rates, building and landlord insurance, land tax, property management fees, and repairs and maintenance. Loan repayments sit on top.

Moneysmart’s advice is to do a budget comparing the income you expect with your outgoings, and not to rely on rental income to cover the mortgage. If there is a shortfall, ask whether you could carry it, and whether you could cover costs for a while if rooms were empty.

The net position depends on your loan structure, deposit and tax position. That is work for your accountant and your mortgage broker, with your own numbers. Be wary of anyone who gives you a net income figure or a date by which the property will “pay for itself” before they know how you would fund it.

  • Take the gross figures from Step 3 to your accountant and broker.
  • Ask them to model the costs, the loan and the tax for your situation.
  • Decide whether the result meets the goal you wrote down in Step 1.

Step 5: Check the building and the people behind it

Income from nine leases holds up only if the building is legal for nine residents and the rooms stay let. Check both before you rely on any number.

On the building: the Australian Building Codes Board describes a Class 1b building under the National Construction Code as a small shared residential building with a floor area under 300 square metres that ordinarily has fewer than 12 people living in it. Harmony builds purpose-built co-living only, and Class 1b certification is confirmed on every property before commitment. In Victoria, rooming house operators must also be licensed, and Consumer Affairs Victoria keeps an online register of licensees you can check.

On the site: Harmony chooses sites with the 118-point method, covering 42 points of market analysis, 38 of area selection and 38 of property specification, and rejects 85% of the opportunities it evaluates.

On management: as at October 2026, our property management partners manage 477 rooms with only 6 vacant at any time, a 1.26% vacancy rate, and maintain 98%+ occupancy. That is their record across a portfolio, not a promise for one building.

On fees: clients pay Harmony $0. The builder pays the fee at settlement, and the rate is the same for every builder on the panel, so no builder earns Harmony more than another. How these pieces fit together is set out in The Harmony Formula, and who does what in who builds purpose-built co-living investment properties.

Step 6: Start the free education program

Once you have the capital and the goal, the program is where to learn the rest. It is a free co-living education program of 13 short modules on how co-living property works in Australia: what it is, how the numbers stack up, how sites and builders are chosen, and what happens if you decide to go ahead. Its core takes about 45 minutes, and there is no obligation.

The program comes first because it lets you test the fit on your own time. One module is about who is a good fit and who isn’t. By the end you should be able to explain, in your own words, where the income comes from and what it depends on. Moneysmart treats that as the basic test for any investment: you should be able to explain how it makes money and where the returns come from.

  • Create an account and work through the modules at your own pace.
  • Note every question the modules raise for your own situation.
  • Take those questions to Step 7.

Step 7: Then talk to a director, and your own advisers

Finish any 9 modules and a booking link opens for a one on one with one of our directors. That conversation is about the building and whether it fits what you wrote down in Step 1. If co-living isn’t suitable for you, we’ll tell you why.

For advice on whether the investment suits your whole financial position, speak to a licensed financial adviser. Moneysmart suggests asking an adviser about their fees, and about any commissions or incentives they receive if they sell you a product. Your accountant and broker stay in the loop from Step 4. We build in Melbourne. Our investors come from every state, and the whole process can be handled remotely, so your own advisers can be wherever you are. The wider picture of who to use is in who should I use to invest in co-living property in Melbourne.

When this path is not for you

This path is not for you if you have less than $600,000 in cash, usable equity or both. It is not for you if the purchase only works when every room is let every week, because Moneysmart’s warning about relying on rent to cover the mortgage applies here as it does to any property. And it is not for you if you would rather hold a single tenancy you can manage without a specialist. In each of those cases, the education program can still help you understand co-living, but buying a nine-bed is not your next step.

Frequently asked questions about starting out

Q: How much do I need before a nine-bed is worth considering?

Harmony’s nine-bed requires a minimum of $600,000 in cash, usable equity, or a combination of both. Ask your mortgage broker for a written usable equity figure, because an online calculator is only an estimate. If your total is under $600,000, start with the education program to learn, not to buy.

Q: Will a nine-bed replace my salary?

No one can promise that, and you should be wary of anyone who does. The published figures are gross: around $380 a room a week and $179,010 a year across nine rooms. Average figures based on most recent projects. What you keep depends on your loan structure, deposit and tax position. Treat the gross figures as the starting point for a budget with your accountant, not as a figure to plan your working life around.

Q: Why can’t I book a meeting straight away?

Because the education comes first. The program explains how the numbers are built, how sites and builders are chosen, and who is a good fit. Finish any 9 modules and a booking link opens for a one on one with one of our directors.

Q: Do I need to live in Melbourne?

No. We build in Melbourne. Our investors come from every state, and the process runs remotely. Your own accountant, broker and licensed adviser can be wherever you are, and the education program runs online, so you can work through it from any state.

Your first step

If you have the capital and want income that arrives while you are still working, rather than after you stop, start with the free co-living education program. It shows how a purpose-built nine-bed produces income, what sits between gross and net, and how the building is certified and run. If co-living isn’t suitable for you, we’ll tell you why.

Citations

  • Buying an investment property, ASIC Moneysmart. Advises making the purchase part of an investment plan, budgeting income against outgoings, and not relying on rent to cover the mortgage; lists ongoing costs.
  • Check before you invest, ASIC Moneysmart. Sets the test of being able to explain how an investment makes money and where the returns come from.
  • Choosing a financial adviser, ASIC Moneysmart. Lists questions to ask an adviser, including fees and any commissions or incentives.
  • Rooming house operators licensing scheme, Consumer Affairs Victoria. Confirms operator licensing under the Rooming House Operators Act 2016 and the online register of licensees.
  • Building classifications, Australian Building Codes Board. Defines a Class 1b building by floor area under 300 square metres and ordinarily fewer than 12 residents.

General information only. The Harmony Group provides general information about property and co-living investment, not personal financial, tax or legal advice, and does not hold an Australian Financial Services Licence (AFSL). It does not account for your objectives, financial situation or needs, so consider its appropriateness and seek advice from a licensed financial adviser, mortgage broker, accountant or the ATO before acting. Past performance is not a guide to future results and historical figures may not be repeated. The 2027 negative gearing reform was enacted on 26 June 2026 and applies from 1 July 2027. The definition of a new residential dwelling is still being settled after Treasury’s consultation, so whether a nine-bed is an eligible new build remains unsettled. Other tax or regulatory measures described are subject to change.