Co-living property investment: A lucrative investment option
“Co-Living” is a new and emerging concept which revolutionises the way people think of shared-living. House sharing has been around since some time and is not new to certain demographics like young students and working professionals. In the age of urbanisation, remote working and the “gig-economy,” these individuals are requiring more flexible and affordable ways of living. To meet this growing demand, our builder partners are delivering purpose-built designs with all of the “must-have” features to facilitate improved liveability for these shared spaces. These types of properties foster supportive connections between tenants whilst also allowing for independence and privacy.
Why is Co-Living property investment so important?
In an Australian real estate market where traditional property prices remain unaffordable for many, cities are becoming ever-more urbanised due to high population growth and the lifestyles of many are becoming more dynamic in a digitised economy, a significant opportunity is presenting itself for investors and renters alike. In the capital cities, students and young professionals in particular represent a population of residents that are looking for a housing solution that meets their lifestyle needs where shared rentals or traditional/established properties cannot. While shared properties are the most common housing option for “flatmates”, they are typically limited in what they can offer, lacking privacy and secure storage options for instance. As many of these individuals are typically more mobile than previous generations due to the changing economy, taking on long leases is costly, inflexible and with vacancy rates at record lows, there is less accommodation to choose from. It can be hard for many to cope financially when new furniture and supplies for a kitchen may need to be purchased each time one moves into a new shared rental property. To make things worse, for many newcomers to the housing market, it can be alienating and disheartening when many are priced out of both the established and rental markets due to the high costs of living in many cities. The problems presented here have given way to a gap in the market, where needs-based approaches to home design are emerging to meet this new demand.
Co-Living property designed to meet a growing market
Co-living house designs work to bridge the gap between the fundamental requirements of this growing population and the current supply of housing options in the real estate market. Our builder partners have developed several people-focused designs, consisting of three to four key-pad locked rooms, each featuring a private ensuite and air-conditioner. There are a number of communal spaces for tenants to move, relax and live with dining and entertainment areas and designated lockable pantries in the open-plan kitchen for each individual. Some of our builder partners offer designs featuring a solar power system as well as a furniture package to help with minimising expenses. Also dependent on the builder, BBA offer designs which feature a fully-equipped laundry with washing machines and dryers, which is often missing from typical share homes and dedicated garages for storage (for the 3rd tenant, there is an additional living area available for storage). In this way, these designs work to maximise the living space so as to promote a higher quality of living, without compromising on comfort - all of which tenants require to co-share with others whilst being able to live independently.
From a rental perspective, rates are charged per week, per room, so this makes the rental fees comparatively lower to the standard market rate (depending on the location). Still, with the weekly revenue brought in from all three individual tenancy agreements, investors have the potential to generate up to twice as much returns than for a similar sized family home. Some of our builder partners offer properties which can also be managed by dedicated property managers to ensure low vacancy rates and a well-kept property). All of these intricacies help to ensure that this type of living arrangement is functional, practical and convenient for users whilst maintaining investor confidence and high returns. This is why Builder Brokers Australia have been striving to put Co-Living Property Investment on the map for investors.
Co-Living Property Locations
Locations for Co-Living Properties are selected based on demand data to ensure a sustained, high level of financial performance is achieved. We currently offer many opportunities in growth corridors across NSW, VIC and QLD for investors to maximise on any land equity growth. Locations that also display a strong indication of demand from tenants looking for share accommodation will be suggested however due to the market supply, this does not necessarily mean that tenants would not be willing to consider other locations (such as away from metro areas) should the Co-Living property be able to fit their requirements. Lastly, rigorous due-diligence is carried out to ensure planning and regulations are adhered to by our builder partners within each council. This allows investors to feel confident about their location strategy so that they can ensure high vacancy rates, potential for equity growth and compliance with council regulations in regards to their build.
How BBA can help you achieve your project vision
It's critical to find a builder who can ensure the quality of your build while planning and completing the project as fast as possible. If you're thinking to invest in Co-Living properties, BBA can help you make the most of your property investment journey by evaluating your build specifications (such as location, budget, and house requirements, among other things) and working to narrow down the projects that suit these. Through an EOI, we would then put you in touch with our builder partners, who would finalise your design, enter into a contract with you, and carry out the property's construction. Please click this link to learn more about our process: https://builderbrokersaustralia.com.au/about-us/. Financing options are available (please contact us for more info).
Final Note
Investing in Co-living property is a great all-encompassing, end to end solution for investors who are looking for high yielding, equity growing, low involvement assets. .
It is a system that also benefits tenants in allowing for improved affordability, liveability and fostering a sociable environment. For both parties, this is a win-win housing solution and investment that is part of an exciting future growth-market in Australia.
Contact Builder Brokers Australia today if you are thinking to invest in Co-living properties so that we can help you build your lifestyle.