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Co-living Packages in Brisbane

Are you new to non-traditional housing options and willing to explore other property investment opportunities in Australia?

Are you doubtful as to whether you should follow these emerging property trends or not?

One such non-traditional construction type, being Co-Living can be a promising opportunity for investors looking to meet the demands of the future of the Australian property market and reap good returns in the process. Based on real estate firm JLL’s 2024 report on emerging trends in the real estate sector, Gordon McFadyen, JLL joint head of metropolitan sales and investments, NSW points out that “the co-living sector is attracting strong interest in those seeking to capitalise on rising rentals as the demand for medium-term accommodation snowballs in an undersupplied market.” While Sydney and Melbourne are the hotspots of this evolving market, the demand for Co-living Packages in Brisbane is also rising quite rapidly.

Co-living homes are designed as shared living spaces and work to facilitate optimal independent living by meeting the fundamental lifestyle needs of renters (such as enhanced privacy, storage options and other amenities). The needs-based approach used here helps to ensure this type of living arrangement is practical and convenient for tenants and additionally fosters community between flatmates, enhancing day to day liveability. The rise of urbanisation, remote work and unaffordable rental market has created a surge in demand for such properties among young professionals and students. Catering mostly to these demographics, including singles and young couples, this housing concept also offers better flexibility and cost-effective ways of living to meet the modern-day requirements of these tenants. Co-living spaces not only act as a passive income source for investors but also ensure long-term profitability as tenant demand is ever-increasing (heightened by the growing population across Australian cities). As a result, investors are looking to diversify their property portfolios to include more non-traditional housing options like Co-Living constructions and fully embrace the changing market landscape.

This blog sheds light on various myths associated with  investing in co-living spaces that should be dispelled to help investors gain relevant insights and include other non-traditional housing options that will diversify their property portfolio.

Common Misconceptions about Co-living Property Investment

Misconceptions are common - especially regarding new housing concepts and trends. It is always appropriate to gain  relevant awareness in newer or unconventional market opportunities and adopt a positive approach to understanding the economic drivers which are causing the shift  in market demands. Builder Brokers Australia offer a plethora of non-traditional housing options (NDIS/SDA, Dual Living and Co-Living) along with traditional house and land packages which are complementary to and reflective of the increasing demands in different sectors of the real estate market. If you are considering investing in co-living construction, you must consider the potential rental yields, tenants, legal liabilities, and several crucial factors (such as your risk tolerance and financial position). Various builders and Builder Brokers in Melbourne, Sydney and other major cities of Australia are also offering Co-living construction opportunities, but still, we at BBA continue to see that the existing myths often cause confusion and hence reluctance from investors to explore this opportunity further.

Hence, to help investors give this property type some further  consideration  , let us unpack the  myths associated with Co-Living property investment.

Myth #1. Excluding Families is Ignoring The Most Significant Market Sector

A major misconception that several potential investors tend to hold is that co-living spaces do not cater to families and therefore neglect this market sector. Families are the largest target market for traditional properties (houses, apartments, townhouses, duplexes etc) and now,  even more sustainable housing innovations are emerging that focus on easing the financial burden on families and providing more flexibility (such as dual-key construction types)). It’s important for the market to provide homes  in a variety of forms to make sure that the requirements of modern-day families are also being met. Builder Brokers Australia offer dual living/dual key properties through our builder partners as one potential value-driven housing solution for families (allowing two independent and separate homes with the same features to be built on a single block of land). However, with  a combination of demographic shifts (ageing population), socio-economic trends (i.e. delayed marriage and greater acceptance of living alone) and economic factors (i.e. increased female labour force participation and increased remote working), pressure has been most acute on students, single persons and new migrants to find suitable housing options due to undersupply of properties, housing unaffordability and high costs of living. This demographic represents a large portion of the rental market sector in Australia and for these individuals,Co-Living is an important innovation that maximises space, makes rent more affordable and provides value by featuring amenities usually not found in traditional rental properties. Hence, Co-living is supporting a growing market sector  which property investors should become more cognisant of should they wish to make an impact on these consumers.

Myth #2. These Types of Properties are Challenging to Manage

Are you an investor worried that co-living property investment in Australia  might be hard to operate? Managing multiple tenants is complicated and time-consuming. With the surge in demand for co-living spaces, BBA has been able to partner with select  builders who provide property management services that will take care of the entire process efficiently (this is provided as an additional service, hence not an inclusion). Specialised property management teams provided by the builder will  ensure vacancy rates are kept low via quality assurance screenings of tenants before they are placed in the Co-Living property. The property managers provide tenants with a level of care that fosters genuine community spirit, resolve any issues between tenants and ensure the property is well taken care of. This will increase lease longevity and in turn keep rental yields high for investors. As a result, investors do not have to worry about taking time out of their schedule to manage each tenant. From the screening procedure and processing of the lease agreement to rent collection, the hard work is taken out by these property managers who are  specialised in co-living properties. Not all of our builder partners  provide this service, so this can of course be outsourced to a regular property manager through a real estate company as a solution. Contact us for more information.

Myth #3. Financial Institutions do Not Provide Loans for Co-living Property Investments

Many financial institutions previously refrained from providing loans for investment in Co-Living construction projects  due to the lack of understanding in how to value these  housing models in the market. However, as the demand for build-to-rent properties has matured, lenders have gained more awareness and knowledge of Co-Living homes and   this has allowed for more accessibility to loan options in the market. BBA offers financial assistance through   our approved financial partners who understand the ins and outs of Co-Living property investment. A valuation performed by a bank will compare the value of a Co-Living property to that of a similar rental-yielding property (with the same amount of bedrooms) in the same area without taking consideration of the added extras (to accommodate the added tenants. Investors can now secure funding easily and invest in co-living properties without much hassle with the acceptance of this housing model from select lenders.

Myth #4. Investing in Co-living Spaces is Risky Because of Strict Legal Regulations

It is true that co-living properties face their own set of certain legal regulations based on specific states and councils and it is helpful for investors to understand these. However, when you decide to invest in any such property, our builders will have their own town planners who look to extensively research and analyse the local council building regulations to ensure they are adhered to. The pre-selected building areas are based on financial analysis, market trends and an understanding of local government laws. Whether you are looking at investing in Co-Living packages in Brisbane, Melbourne or Sydney, our builder partners will have this work done prior to packaging the land component and compliant   home design. There are typically no strata titles involved in these types of properties which makes  insurance more simple and cost effective. You can also seek assistance from a legal expert from the specified area with relevant knowledge and expertise in managing co-living spaces in Australia. This way, you will be aware if your invested property for co-living meets the local laws and also remove any potential legal mishaps in the future.

Final Thoughts 

Co-living properties are a unique concept that is rapidly spreading in Australia and gaining traction among most young professionals and couples, students and singles.. They are a significant investment opportunity for Australian investors looking for a consistent income source from rentals. Understanding  the benefits and dispelling the myths of Co-living Properties can help investors to realise this opportunity for wealth generation.

Builder Brokers Australia is a professional builder broker that offers off-the-plan Co-living projects across a majority of the major cities in  Australia that can help you generate wealth. Our builder partners, land development partners and financial partners work with us to help you invest in your dream home build. Whether you are looking for builder brokers in Melbourne, Sydney or  Brisbane, we offer Co-Living packages across most of the  metropolitan cities across Australia. Contact us today for more information.