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Co-Living Property Return on Investment

Find CoLiving Property

CoLiving Property in high demand

What is CoLiving Property?

Purpose designed and built homes providing superior yields and capital growth potential to you the investor

How does it work?

High and growing demand by both young professionals as one target market and the other coming from single mature renters, both markets wanting to share a house in the suburbs. Both target markets do not want to live in an apartment or alone.

What advantages are there investing in Co-Living Property?

Advantages for you the investor include capital growth potential + higher than market rental income, and being cash flow positive with your investment. The advantages to your tenants include both private space and also common shared areas, sharing of living expenses and the opportunity of having company and security … and of course a garden living in a house in the suburbs.

In short :

  • Capital Growth
  • Higher than average market rents
  • Risk mitigated due to demand
  • Sound investment locations
  • Home built just like the house next door, probably better, especially as has an extra bathroom or two and other modern features
  • Can use the positive cash flow to help pay off your home loan quicker
  • Banks prefer lending to portfolios with higher cash flow, so you would be better placed to get your next loan for another investment that much sooner compared to a lower income portfolio

CoLiving

A Co-living property looks and feels just like the new build home next door, but what distinguishes it from the new rental next door is receiving 3 sets of rents, from 3 tenants, who have all signed their own independent rental agreement with your rental manager.

Rental Income Potential by way of example :

  • A 4 bed home next door on the rental market could be getting around $29k per annum in rental income for you. [$306,098 rental income over 10 years]
  • Your CoLiving investment property could be achieving around $47k (conservative income) accommodating 3 tenants who want to share. [$503,028 rental income over 10 years]
  • The difference to you over 10 years could be as much as $196,930, at only a 1.5% rental increase on both the properties above
    • The Co-Living market is achieving between $900 per week, and up to $1,200 per week (location dependent)

Rental Demand

If you review the statistics of online searches for rental properties, over 60% (some quote 75%) of searches are for shared accommodation wanting to find shared accommodations and there is a growing demand for improved and also affordable shared accommodation solutions.

This is your opportunity to supply a new Co-Living home into the rental pool, delivering what your tenants are needing and earning a higher than market rental income in doing so.

This is what distinguishes a Co-Living Property from the home next door!

See the two examples below for demonstration purposes only. Note that the numbers will change according to market conditions and your personal circumstances, to be used as a guide only to demonstrate the potential return on investment and cash flow for the two investments.

Example of a 4 bed House & Land Package Financial Analysis

Cash flow Positive Investment Property Australia
4 Bed house and land package
  • Property 650k
  • 10% deposit
  • 5% interest only
  • Taxable Income $120k
  • Including : rates, insurance, management fees etc
  • Including : depreciation benefits
  • 29% pretax return on investment
  • -$14 pw Negative Geared
  • Cash Flow 10 years -$12,004
  • Equity after 10 years @ 4% growth could be $359,817

Example of a 3 bed, 3 Bath CoLiving Home Financial Analysis

Cash flow Positive Investment Property Australia
CoLiving Home
  • Property 750k
  • 10% deposit
  • 5% interest only
  • Taxable Income $120k
  • Including : rates, insurance, management fees etc
  • Including : depreciation benefits
  • 43% pretax return on investment
  • $175 pw Positively Geared
  • Cash Flow 10 years $90,121 positive income
  • Equity after 10 years @ 4% growth could be $417,017
  • Ability to borrow for your next investment sooner when investing in a higher cash flow property
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