Advantages of Investing in a Co-Living Property
Investing in a Co-Living property is the same as investing in a traditional investment property with the added advantage in that the home is purpose built to accommodate between 3 and 5 individual tenancies instead of just 1 tenancy.
In Coliving properties every square meter is efficiently optimized to increase rental returns by as much as 120% compared to the house next door. Each tenant has their own private bedroom with ensuite and can also utilise the common living areas, private lockable spaces and kitchen etc.
This type of accommodation is ideal for millennials, young professionals, retirees, divorcees and anyone that would prefer to pay a lower weekly rental, not live in an apartment or alone, but still have a lease and their own private and or communal spaces.
CoLiving property Demand
Demand remains very strong for this type of rental property due to the shortfall of available rental properties around Australia. And also current shared accommodation models just do not work as well nor do they suit the tenants or landlords alike.
Investors have an opportunity to invest in an asset that is *cash flow positive from day one, as well as being virtually immune from loss of total rent and thus cash flow, as when a tenant moves out. The other tenants are paying rent thus providing you income, whilst your rental manager replaces the tenant that moved out.
The added advantage of multiple income streams, further mitigating risk on your investment. With another advantage being lower vacancy rates, compared to a home where there is only one lease agreement in place.
A further advantage for you the investor is improved opportunities for Capital Growth. You can sell a Coliving home to another investor wanting higher yields, or to a family who want an improved home design with added built in features and a larger floor plan. Who doesn’t want to live in larger space these days?
Coliving properties are in high demand because they cater to a large segment of the rental market being individuals and people who would otherwise rent a studio or 1 bedroom apartment.
Advantages of investing in Co-Living Property Summarised
- High Demand for purpose built Co-Living Homes
- Low supply, meaning less competition for your investment
- Higher rental yields than the family home next door
- Capital Growth potential
- Cash flow positive income, when set up correctly.
