What are the identifiable benefits of colving property for Investors?
Higher Rental Yield Investment Property
On average, a Co-Living investment Property is yielding around 6%
Ability to be Cash Flow Positive
Banks will lend sooner for your next investment based on you being cash flow positive. Higher income in your pocket means improved opportunity to borrow more and borrow sooner for your next investment property. Building up your personal wealth that much quicker giving you the ability to take control of your own financial destiny, for this generation and generations to come.
Opportunity for multiple income streams
Your 3 or 4 tenants all have separate rental agreements, meaning income from separate tenants.
Opportunity for capital growth
Secure your CoLiving home in an area where there is demand for housing, in locations that will enjoy capital appreciation over the life of the investment.
The Co-Living home looks and feels just like the other new build next door, with added features and benefits that make it appealing to owner occupiers or investors when you want to sell it.
Lower vacancy risk
Having separate Rental Agreements in place for each tenant, if one leaves you still have occupancy and income from the remaining tenants.
Secondly, purpose built and designed Co-Living arrangements are in strong demand and supply is low. Strong demand equates to low vacancy risk, meaning higher occupancy.
With historically low vacancy rates across most locations in Australia, the opportunity for the type of tenant you will attract finding a ‘shared’ home is also minimal. They are seeking out such accommodations but are in competition with families who want to rent the same home.
Improved cash flow means you can borrow further for your next investment opportunity
Banks lend against your income. The higher your income, the higher the opportunity to leverage into your next investment. Sure, they review your balance sheet and debt, however if you have a healthy balance sheet, your ability to borrow is stronger.
Equity today is there to redraw against for a deposit for your next investment. Cash (income) is king when borrowing to Leverage.
*as per above example (for demonstration purposes only), the Co-Living investment property could achieve around $155,000 higher rental income than the family home next door.
Higher tax depreciation benefits
A CoLiving house includes features and benefits the home next door will lack. What this means to you the investor is there is more to deduct for Depreciation. The net result is you will pay less income tax to the ATO based on Depreciation benefits you can claim.
Again, improving your personal cash flow scenario. Pay the tax man or pay yourself?
Strong demand for coliving houses
Your Co-Living home can appeal to a more Senior Market, where in Australia we have a very strong demographic of seniors growing older, but not wanting to live in an apartment or not wanting to live alone.
Your CoLiving home could appeal to the young Adult Single market who tend to be professionals also not wanting to live in apartments and are looking to share accommodations with like minded people of the same demographic.
Between these two categories alone, more people are single and living single. A growing demographic worldwide and in Australia.
People want to stay independent for longer and are thus seeking out accommodations to suit. These same people do not want just any house or apartment to share. They are after purpose built homes to co-house in. They want choice of where to live and how to live.
Availability is limited. Choice is limited.
Demand strongly outperforms supply. Hence the growing popularity of Co-Living homes.
Your opportunity for Investment
Your opportunity for investment into a higher yielding investment vehicle with capital growth potential is NOW!
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