CoLiving Property for Investors
CoLiving Property in Australia offers you the investor a high yield, cash flow positive investment property with capital growth potential in a new, high demand growth market.
Did you know that a vast majority of renters are looking to share accommodations?
What this means to you is there is a wide and relatively untapped market, with very little to no competition across most property locations.
Those wanting to share tend to avoid looking for apartments as they are too small and offer very little to any privacy. Next best thing is a house, yet most home owners renting their property out prefer stable families and do not like to approve a bunch of people turning their property into a commune.
The other side of the coin is that most homes being let to multi tenants are old, tired and certainly not purpose built, meaning higher turnover of tenants and of course a lower rental yield for the investor … and what about higher maintenance issues eating into rent received?
There are also issues with who is responsible for the outgoings when there are multi tenants under one single lease, and issues around who the bond belongs to on that person wanting to vacate the dwelling and getting the next tenant to put up the bond. Agents do not enjoy managing multi tenanted dwellings.
Hence the advent of Co-Living houses in Australia as the solution to all the above, with yields way higher than renting to one family and each tenant signing their own lease and being responsible for their percentage of the outgoings all on a managed basis.
Compared to the 4 bedroom home next door who is by way of example only achieving around $600 per week rent, renting to a family unit, a coliving house could be getting closer to the $800 per week; which is around 25% increase in rental income. Or where rents are around $450 pw, the co-living house could achieve closer to $675 pw; which is around 33% increase in rental income (*location dependent)
Your tenants could be : singles, couples, multi generational families or seniors, meaning a wider rental pool that is growing.
Another major benefit of multi tenants, each under their own lease agreement is that your occupancy rate remains consistent as the risk of a family moving out means total vacancy, compared to the risk of one tenant vacating whilst you replace that tenant. You still receive income from the other two tenants.
Across Australia vacancy rates are 1% or below, meaning the opportunity of people who want to share finding a place is dramatically reduced, on the back of low supply of dwellings for families now and into the foreseeable future. Supply of new builds from investors is very tight and will take a long time to catch up to demand, plus the government are opening the borders to new skilled workers … where will find accommodations to live in?
Rental yields have substantially increased on the back of such tight vacancy rates! Fantastic time for investors you have to agree.
Compounded by historic tight vacancy rates is the availability of quality accommodation to suit multi tenants, and hence the advent if Co-Living homes, ideally suited to investors chasing higher yields and capital growth potential.
Your exit strategy is easy as a home like this appeals to a family or an investor widening your target audience the day you want to sell.
Oh by the way, if you elect to rent it out to a single family unit, that too is your choice. Your investment property, you direct the rental manager as to what you want.
Singles
Co-Living Properties for Single Investors
Coliving homes are an ideal solution for singles, which is a massive growth market. Single but still wanting to be with other like minded people for companionship, security, friendships, fun and to avoid loneliness. They are wanting to live out of their family homes and have their own place to share with others and call home.
Co-Living homes are ideally suited to singles whether they are moving out of home for the first time or starting again and are looking for that place that is not an apartment, not isolated, not old and tired, yet still affordable.
An ideal way to save their $’s because they are sharing in the rent, and in costs to run the home, giving them an opportunity to save for their travel or their financial future. Sharing the space and cost with like minded people or friends.
Healthier lifestyle being with other like minded people, leads to going out more often, being around other people, meeting new friends, exercising more and could even lead to healthier eating habits. Co-Living makes lifestyle and economic sense.
Seniors
Being senior and alone is heartbreaking!
Seniors now have a viable and budget friendly option of sharing with other like minded seniors who are also wanting to live with and amongst others.
Being social and being able to live the life they want and deserve, sharing a co-living home with other seniors not only reduces depression, but can add tremendous value to one’s life. Seniors tend to exercise more when with others by going for walks together or to the gym together. They also tend to not only eat better but also go out to entertainment now that they have company to go with. Companionship is healthy!
If you surveyed seniors living in apartments or alone in what was their family home, most would fess up and admit that loneliness is a major downside to living alone. Second is the high cost as the total rent / upkeep is on one persons shoulders. Followed by being isolated and lastly fear of personal security living alone.
All valid reasons why coliving houses make so much sense to seniors. Choice of where to live and with whom to live.
Families
With the advent of multi generational families growing in Australia, co-living homes make for an ideal place for them to call home.
Australia’s cultural diversity makes living together a routine occurrence, with blended families sharing one home as common practice.
Co Living floor plans adequately cater for both shared and private spaces, both inside and outside the house making it easier for multi generational families to live under one roof comfortably and safely. How good will meal times be for these blended families or having baby sitters on hand when ever you need one.
And we have not even touched on sharing the costs allowing the younger generation to accumulate savings and the older generation to have more to support the lifestyle they worked hard for and deserve and want.
Another major benefit is a co-living home allows for elderly parents to live with families for longer having care and oversight on hand under the same roof being a safe environment for ageing parents.
Blended families have the opportunity to own a coliving home themselves or be tenants in a co-living home.
