As the demand for affordable housing continues to grow, co-living comes across as a lucrative solution for young professionals and students. The fact that co-living spaces are built to foster community, lower living costs, and provide access to a host of amenities/ services makes them ideal for today’s generation. This presents a unique opportunity for property investors to tap into the growing market and maximise their returns.
Before we dive into the specifics of how investing in co-living spaces may be advantageous for investors, let us first clarify what co-living actually is!
Introduction to The Concept of Co-living
Humans have been living together almost since time immemorial, and yet, it is only recently that the term co-living has come to the forefront. Co-living spaces are beneficial in that they can accommodate non-related people in one home and are specifically designed to enhance the liveability for each individual occupant. Co-living spaces often have special perks, such as professionally furnished common areas, private on-suite bathrooms, lockable storage and lockable pantries etc.
When an investor joins hands with us at Builder Brokers Australia, we take it upon ourselves to review how our builder partners are working to meet the current demand for the housing option and how we, as a property investment builder broker, can help investors achieve their vision.
Co-living Spaces: The Future of Urban Housing
As urbanisation continues to reshape cities around the globe, the need for innovative housing solutions has never been greater. In times like these, co-living spaces have been considered to meet this increasing demand and now look to be a part of the future of urban housing. For property investors, this shift doesn’t just represent a trend but instead is an opportunity to capitalise on changing living preferences of mostly working individuals and young people.
Meeting The Demand of A New Generation
As you might have guessed already, co-living spaces generally cater to the millennials and Gen Z - people who value affordability and flexibility. As cities become increasingly crowded due to urbanisation and the rise of remote work has changed the lifestyles of many, traditional housing solutions have become less viable. Along with housing unaffordability and an increase in homelessness and social isolation, current-day rental options often don't work to provide the solutions to these challenges. This has driven the need for space-efficient and affordable housing solutions. Co-living spaces, with their community-focused living, address these issues and efficiently use limited urban space. Moreover, the spaces are helpful for fostering social connections that produce positive outcomes and increase wellbeing. A well-managed co-living space tends to consistently attract tenants, thus offering a stable rental income which is advantageous for investors.
Better Revenue Potential
Co-living accommodations can accomodate (usually up to around three tenants) and can generate higher rental yields because they are designed to be fully equipped with everything one may need which a traditional rental space cannot offer. The fact that, as an investor, you get to maximise space utilisation, is what makes it so appealing - especially in densely populated urban areas. This high demand for co-living spaces is translating to higher occupancy rates which proves helpful for consistent cash flow generation. Most investors will put their money into a space that doesn’t get fully utilised and doesn’t maximise the full potential of that area. Builder Brokers Australia, your investment property builder broker will present our available package options to suit your requirements, explain everything you need to know about building your Co-Living property and connect you with our builder partners specialising in this housing option so that you can have the property built and ready for tenants to rent on the market.
Property Features
Co-Living spaces are not just helpful for our modern-day property investors; they are also a big win for tenants! Co-living spaces often include fully lockable ensuite bedrooms with additional secured storage, lockable pantries in an oversized kitchen, laundry with washing machine and dryer and double car garage making such spaces a complete value-for-money proposition for future renters. Addressing the key priorities for everyday tenants increases the day-to-day liveability of these Co-Living spaces and in turn helps with occupancy rates.
Key Takeaway
For property investors, co-living spaces represent a forward-thinking investment opportunity, one that aligns with the future of urban housing. As an increasing number of people gravitate towards this, the market for co-living spaces will surge even more. Thanks to high occupancy rates and increased revenue potential, co-living spaces are poised to become a cornerstone of urban living in the years to come.
Builder Brokers Australia is a leading investment property builder broker in Australia with extensive experience in the residential property market and Co-living spaces. Our deep industry knowledge allows us to help individuals and investors build wealth through property.
Want to know more? Feel free to connect with our team and find out how you can get the best out of your investment.