CO-LIVING
What is Co-Living?
A new concept which solves an age-old problem in share housing is allowing property investors to potentially achieve double the traditional rental returns.
Renting the rooms individually means the property owners can achieve a much higher rental return than traditional rental properties.
The appeal for property investor clients is the rental returns with capital growth.
In reality you’re diversifying the income from the one property, which is very difficult to do if you rented to one family.
With co-living, if you have three people living there and one of them leaves, you’ve still got the two incomes from the other rooms while you get the third room re-filled.
A typical house rented to one family may earn a weekly rent of about $400 or $500, but through the shared model there was the potential to achieve between $750 to $900 or more a week from three tenants, depending on the demand in that area and the type of tenants.
Either way it’s substantially more, even at the low end, than the amount you would receive from renting it to one family.
In excess of 50% of the population earn $89,000 or less per year – and for those people to not be in rental distress from the day they move into a property, they need to be paying less than $400 per week for a rental property.
A survey of 1,300 renters conducted found tenants were happy to share but wanted to be on an equal footing with other tenants in a property.
That meant bedrooms of the same size and a private bathroom.
Tenants also wanted air conditioning in their bedrooms and for houses to be fully furnished.
The homes can be tenanted by three people at a time, as once it is rented to more than three individuals it becomes what is known as rooming accommodation, which changes it to more of a commercial development.
For Investors
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Co-Living is the next generation in residential investment property.
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Increase rental returns by up to 100%
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Every square metre is optimised for rental returns.
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Co-Living changes the viability of residential investing.
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Multiple rental agreements in a Co-Living home reduces the risk of occupancy downtime.
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Choice of renting as one home or multiple tenancies.
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Negative Gearing can offer Property Investors tax benefits.
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Beat the over supply of standard family homes, and invest in a purpose built designer housing niche market.
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Housing affordability is decreasing, so why not look to a green shoots residential Co-Living investment market.
Co-living Homes
We provide clients with Co-living Homes investment opportunities in growth corridor locations in South East Queensland and Melbourne a. Locations are selected based on demand data to ensure a sustained, high level of financial performance is achieved.
The demand for homes in both South East Queensland and Melbourne's growth corridors is at unprecedented levels.
More and more people are seeking space away from cluttered city living and the demand for new homes is not being met by supply, with land being a major point of constraint.
More demand and restrained supply are pushing up both rental yields and property prices.
Key Criteria for Co-Living Homes
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Proximity to primary and social infrastructure
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Focus on SEQ economic development corridors
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Sense of space and community in estates
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Co-living focused design with a commitment to optimising personal space
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High sharing demand
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Rising resale demand and property values
Co-living Homes are now available in South East Queensland and Victoria.
