Prepared for Lorraine Barker

Your Rooming House Search

Where the search has landed: an offer is in on 1 Lindsay Place, Bacchus Marsh, with the repair conditions written into the contract. The suburb work and the properties we ruled out sit at the bottom as supporting material.

The journey so far, and what happens next

Done

Brief set

SMSF purchase, $660–680k, rooming house conversion, conversion budget $40–50k.

Done

Suburbs scored

Five suburbs assessed on the things that make a rooming house work, Bacchus Marsh came out on top.

Done

Properties filtered

Everything that crossed our desk was screened, nine assessed in detail and ruled out, the rest screened out at listing level.

Done

Inspected

1 Lindsay Place and 19 Malcolm Street, Monday 4 August. Malcolm Street was then ruled out on renovation spend.

Done

Floorplan and feasibility

Lindsay Place floorplan received, and Stuart's conversion assessment is done: planning suitable, 6 rooms very achievable, 7 possible subject to final measurements.

Done

Contract and Section 32 reviewed

Received and reviewed. We have spoken with Grace, your conveyancer, on the phone and sent through a comprehensive email summary as well. The key items are the repair special condition, which the agent has confirmed in writing the vendor will accept, the correct SMSF purchasing entity for the loan, the finance and inspection conditions, and settlement at around 60 days.

Now

Offer submitted

The EOI has gone to the agent in writing at $670k with the contract amendments attached, including the bathroom remediation special condition and the independent building inspection sign off.

The vendor's response, signed by 9 August

We work with the agent on any come back on price or conditions, with the aim of a signed contract this week. The legal cut off is Sunday 9 August, the new law commences Monday 10 August and protects any contract entered into before then even where settlement happens later, but we are not leaving this to the weekend.

Then

Finance, repairs, settlement

The 14 day finance clause runs with your broker across it. Settlement suits Lindsay at 4 to 6 weeks while the vendor fixes the bathroom through insurance, with the option to bring settlement forward by mutual agreement once the works are signed off.

1The Recommendation

One clear first choice, with the second option now ruled out on renovation spend.

Recommended Property

1 Lindsay Place, Bacchus Marsh

Lindsay Place is the best placed option for your total budget at this stage, driven by the age and condition of the property. It is the newer, lower-maintenance build, so the conversion is a cleaner job and the spend lands around $50k rather than a full renovation, and Stuart's assessment has now confirmed 6 rooms is very achievable with 7 possible.

The value case is straightforward. On comparable sales and data the property sits at circa $690k, and our offer has gone in at $670k, where the vendor has indicated a deal is there. That is real value on day one, and combined with the 796 m² corner block and the general condition of the home, there is a lot more longevity in this asset.

This is a two pronged approach. We are not only chasing rooming house cash flow, we want capital growth over the long term, and the only way to get that at an acceptable rate of return is with a significant land component in the right pocket. Lindsay Place has that in spades. That is why not squeezing out an extra room here is acceptable, the land is doing work the room count cannot.

That recommendation is conditional on the repairs being locked into the contract:

The contract of sale must carry the right conditions to satisfy that proper remediation of the bathroom leak and the affected bedroom wall has taken place, not just a patch over.
At the completion of those works, an independent building inspection is required to sign off on a satisfactory handover of the works. That sign-off is written into the contract as a condition of the offer.
Room count is now costed at 6, backed by Stuart's assessment, with 5 as the worst case and 7 as upside subject to final measurements. The bathtub to toilet swap is included in the works to keep the bathroom ratio right at 6 rooms.
The offer has gone in at $670k as the starting point with a little room to move, on clean, clear terms: the repair conditions above, a 5% deposit, settlement around 60 days and a 14 day finance clause. With the deadline days away, certainty for the vendor is our leverage, a signed clean deal this week beats a slower buyer at a similar number.

1 Lindsay Place, Bacchus Marsh, photos and floorplan.

Front facade of 1 Lindsay Place, Bacchus Marsh — Facade, single level brick on the corner block

Open plan living and kitchen at 1 Lindsay Place — Kitchen and open plan area, timber floors throughout

Kitchen at 1 Lindsay Place — Kitchen, stone tops, dishwasher, bench for stool seating

Living room at 1 Lindsay Place — Living room, around 25 sqm, the room Stuart can split

Aerial view showing the 796 sqm corner block at 1 Lindsay Place — Aerial, the corner block and the land component

Floorplan of 1 Lindsay Place, Bacchus Marsh, 182 sqm living area — Floorplan, 182 sqm living area, the basis of Stuart's 6 room assessment

Ruled out

19 Malcolm Street, Bacchus Marsh

Malcolm Street is a good stretch, the biggest floorplan we have seen, but it needs considerably more work. Once you allow for flooring, carpets, curtains, the kitchen situation and the many smaller items, it will be well over $50k.

Realistically that is $75k to $100k of renovation, versus roughly $50k for the Lindsay Place conversion. That total spend exceeds your budget, so Malcolm Street is ruled out.

2The Offer We Submitted on 1 Lindsay Place, Bacchus Marsh

Submitted in writing on 1 Lindsay Place, Bacchus Marsh, to Mark, the selling agent, on the EOI form, at the price point he gave guidance on.

What we put to the agent

We have come up to the price point the agent gave guidance on, and given the bathroom situation we believe this is a fair and reasonable offer for both parties. We have made it clear we want to work with them to get this over the line as soon as possible.

Property: 1 Lindsay Place, Bacchus Marsh.
Price: $670k, submitted on the EOI form.
Settlement flexibility: you are willing to bring settlement forward by mutual agreement once the works are complete and signed off by an independent building inspector.
Goodwill on the spa bath: you are happy to discuss its removal when the time is right, if that helps expedite remediation where a full bathroom renovation is required.

The contract amendments we have required

Insert, Appliances. The vendor acknowledges that all appliances are in working order and will be in working order on settlement. This special condition forms an essential term of the contract.
Remove, the Cancellation and Re-Scheduling of Settlement condition.
Insert, Bathroom Leak Repairs, as set out below.

Special condition: Bathroom Leak Repairs

The vendor warrants that the water leak affecting the main bathroom and the resulting water damage to the adjoining bedroom wall will be fully rectified at the vendor's expense. The rectification works must be completed by appropriately qualified and licensed contractors where required, must rectify the source of the leak and all resulting damage including replacement or repair of any water damaged walls, linings, flooring, cabinetry, waterproofing, painting and finishes affected by the leak, and must comply with all applicable building standards and legislative requirements.

The vendor must complete the rectification works no later than seven days prior to settlement, and no later than seven days prior to settlement must provide copies of invoices for the completed works, any warranties or guarantees relating to the repairs, and where applicable evidence that the insurance claim has been finalised. You and your building inspector may inspect the property prior to settlement to confirm the works have been satisfactorily completed.

If the works are not completed in accordance with this condition by the required date, you may elect to either postpone settlement until the works are complete, without penalty or default by you, or require an amount reasonably estimated by your qualified contractor to complete the outstanding works to be retained from the settlement proceeds in the vendor's solicitor's trust account until the works are complete.

3The Shortlist: Two in Bacchus Marsh

Both inspected on Monday 4 August. Lindsay Place is the modern, low-fuss option and the one we have offered on. Malcolm Street is the one you found yourself, with the biggest floorplan of anything we have seen, now ruled out on renovation spend.

4The Numbers Side by Side

1 Lindsay Place only, at 6 rooms and 7 rooms as per Stuart's assessment. Rooms at roughly $220 per week. Excludes stamp duty and conversion cost, the works pricing sits with Stuart.

Scenario	Purchase	Gross /wk	Gross /yr	Gross yield on purchase	Conversion scope
Lindsay · 6 rooms (Stuart confirmed)	$670k	~$1,320	~$69k	~9.8%	✓ The case we work to
Lindsay · 7 rooms (living room split, subject to measurements)	$670k	~$1,540	~$80k	~11.5%	▲ Upside only, extra scope

Six rooms is the case we work to, returning about $69k gross a year. Seven rooms comes from splitting the living room, subject to final measurements, windows, light and access, and it lifts gross income to about $80k a year. That extra scope, including the bathroom work that comes with it, is best funded from the first year of cash flow rather than committed to now. Stuart prices the works, so we are not putting numbers on the conversion here.

Supporting material

5The Suburbs We Assessed

Before falling in love with any house, we scored each suburb on what makes a rooming house actually work: enough people, enough renters, tight vacancy, real room-by-room demand, low competition, a workable council and stock you can actually buy at your budget. Your instinct on Bacchus Marsh came out on top, and the numbers back it. Highest score first.

Population, renter share and household data: ABS 2021 Census (Melton LGA population from ABS regional estimates, June 2025). Prices and rents: CoreLogic (April 2026) with Domain and HtAG cross checks. Vacancy: HtAG and PRD Research. Room rates: live Flatmates listings.

6Reviewed and Ruled Out

Everything that crossed our desk got assessed against the brief. Nothing was ignored, it was filtered. Here is each one and the reason it did not make the cut.

Property	Details	Why it did not make the cut

7Also Screened at Listing Level

The wider pool we worked through before the shortlist settled. These were screened on the brief rather than inspected, grouped by suburb with the reason each group came off the list.