An estimated 400,000 single women are in dire need of a housing solution in Australia. The rising flocks of young professional immigrants and foreign students seeking suitable accommodation are inflating the already worrisome figures.
The rising rental property rates and the biting inflation worsen the already bad situation.
For too long, these independent singles had been left with two main options:
- Traditional shared apartments – often located odd locations and awkward features
- Standard apartments with bogus rental prices.
Thankfully, co-living apartments have come to the rescue.
Co-living property investment bridges the huge gap in the Australian housing market -offering a more suitable housing solution for singles and a lucrative investment for property investors.
Reading on, you’ll learn all about modern co-living: how it differs from traditional shared apartments, rental cost, and potential benefits if you consider owning rental property in Australia.
But first things first…
What is CO-Living Housing?
Co-living is a housing solution with multiple tenants living on the same property.
These homes are designed for persons with similar interests, values and, in most cases, the same age range.
Of course, shared apartments and communal living has been a thing for ages. But modern co-living arrangements drift widely from the old traditional pattern. They feature outstanding components that appeal to millennials – including, singles, students, and young professionals seeking the best lifestyle for their lean pockets.
Young singles looking to begin an independent life can now venture out of homes and experience luxury, comfort, safety, and some privacy in an urban setting, all at a fraction of standard home rentals.
If you’re a homeowner with a regular paycheck and you look to explore the Australian real estate supply market, co-living property investment, present a sustainable path to financial freedom.
Why is Co-living Property Investment Getting So Much Traction?
Co-living investment is currently a smoking-hot niche in the Australian real estate market.
Co-living apartments have gained wide acceptance and rising demand, mainly as it provides a tailor-made solution to a unique growing community of millennials.
Among several others, here are the top reasons millennials prefer modern co-living homes and why it’s your best bet if you’re looking to owning rental property.
Co-living apartments are budget-friendly
Co-living apartments offer great rental value for money. These accommodations allow tenants split bills among themselves, each paying a fraction of the total cost.
The periodic rental payments cover utility bills, internet, maintenance, and repairs. It’s an affordable way for millennials to enjoy the modern-day urban life away from home.
It encourages vibrant, and healthier living
Communal living seems to be nature’s default design for humans.
Co-living arrangements offer tenants the relaxing and welcoming aura of living and engaging with like minds. Purposely built with modern-day equipment and fittings, these accommodations can boost occupants’ overall health – body and soul.
Studies say such social ties increase survival chances by up to 50 per cent.
Also, genuine interactions with housemates and the relief from knowing they won’t be sorting regular bills and fixing broken sewage pipes can significantly improve occupants’ physical and psychological well-being.
Promotes Socialisation
There is no second-guessing the fun and mutual bonding that erupts when [say 3] independent young minds co-live.
Co-living properties are intentionally designed, fitted, and furnished for the gen Z. The cooperation and interaction in such communal settings can help occupants sustain workout schedules, get inspired toward professional goals, and learn new interests and passions.
A Few Downsides of Co-Living Properties
Shared living concept may be a great idea, but not in every way. Here are a few reasons tenants may not find the co-living interesting:
Privacy
Shared properties may be unsuitable for tenants who would rather have the whole premises to themselves.
Although co-living offers a private bedroom and a private ensuite, tenants who also wish to have their own kitchen and own media room may be better of with traditional apartment living.
In co-living houses, tenants can’t help getting used to having people around them.
You can’t tweak things your way.
Shared apartments leave occupants with little room for customization – since most of the apartments come furnished. So, while it’s possible to do a little spruce up, a complete overhaul is impossible.
Isn’t co-living the same as student accommodation?’
No – they are different.
While student accommodations are strictly for students, co-living investment targets a broad market – young entrepreneurs, digital nomads, international students Etc
Unlike student accommodation, co-living is open to all. Although we have found that having a wide pool of tenants in an area with razor-thin vacancy rates allows landlords to choose quality tenants.
Do Occupants Share Rooms?
No
Although tenants have shared communal spaces, each tenant has a private bedroom.
However, some properties are designed for groups with about two to five bedrooms. These apartments have shared living space, a bathroom, and a kitchen. This mimics the traditional co-living arrangement.
A more-private alternative is one with multi-bedrooms, say four, each with an ensuite. It comes with a dedicated bathroom.
For studio apartments, each tenant has a private ensuite and kitchenette.
Are Co-living apartments more economical than renting a house?
Surely.
The prices of co-living apartments vary across areas and property designs. However, below is a typical weekly expectation.
- Shared apartment – $265
- Studio – $310
- Ensuite – $349
Good deals indeed, particularly with the rising rental rates in Australia.
So, it’d interest tenants to find a completely furnished apartment in the heart of urban areas for as low as $265 – utility bills and maintenance fees all-inclusive. That said, we believe that a quality built co-living home will attract a higher yield for investors anywhere up to $500 per room if the vacancy rate is low enough and if employers are paying for staff to live in hotel rooms.
What exactly is provided in co-living apartments?
Modern co-living property investment comes well-designed and fully furnished. While the actual content may vary across properties, typical add-ons include:
- Furniture and appliances
- Utility bills
- Free internet connection
- Air conditioner
- Heating
- State-of-the-art installations – such as doors
- Co-working spaces
- Laundry
- Kitchen
- Theatre
Who is target market for CO-living investment?
Co-living houses provide comfortable, safe, affordable, and active lifestyles for many people. Although modern co-living investment targets young independent singles, some other classes of tenants find it interesting as well; including;
Singles – Independent singles are the predominant tenants of co-living apartments. In fact, no other housing solution suits the increasing number of home-scouting singles as much as these affordable and functional co-living solutions.
These apartments allow youngsters to live a vibrant and modern lifestyle among friends and colleagues on a tight budget.
Families – Although rare, a few families are exploring co-living.
Seniors – The cheap rates and communal features cater to seniors’ need for a budget home and a community of peers.
Of course, living among other seniors can be in itself an excellent retirement investment.
co-living Property Investment – The Takeaways
Whether you’re a single looking for a suitable housing solution or an investor considering owning rental property in Australia, here are the key takeaways about co-living apartments:
What are co-living apartments?
Co-living apartments are designed with separate bedrooms, bathrooms and a shared kitchen, garden, and living room. A property typically provides for 3 to 4 occupants.
These fully furnished residents strike out the need and financial implications of tenants buying new properties or moving old ones.
Who is co-living apartments for?
Everyone
However, these purpose-built designer homes are best suited for
- young professionals
- International students
- new migrants
- Millennials
- and even old Australians
It’s basically for persons with flexible length of stay who enjoy networking and socialization with like minds
How much is a co—living property rent?
Shared apartments are budget-friendly – depending on the accommodation type, stay length, location and related demand-supply factors.
However, the typical rate per week ranges between $250 to $600.
Where are these properties located?
Modern co-living investment properties are usually located in urban areas. They are commonly situated in commercial areas – close to universities, CBD districts, public transport, local bars and cafe and universities.
Although Sydney is a hub for co-living property investments, these social housing concepts are spreading across Adelaide, Perth and other states.
What’s in for Investors?
Over the years, housing needs for singles and millennials seem left on the back burner. Thankfully, co-living apartments have filled the big gap in the Australian housing market.
Co-living investment is a viable opportunity for new and existing property investors. Here are a few benefits of the co-living property investment to investors:
Quick Positive Cash Flow: After all your rental property expenses, renters can immediately move in, and you start earning.
If a tenant moves out, it’s easy to have new tenants. This makes co-living property investments a sure idea for persons looking to retire into a steady income stream.
Higher Rental Returns: The chances to boost rental returns seem better with multiple tenants (about 3 to 4). Since a co-living investment can generate about 300/week per room, that amounts to $900/$1200 weekly. So, even if you’ve got an unoccupied space, you still get regular income from other rooms.
The community in co-living apartments encourages long-term occupants
Co-living investment allows you to utilize all available land within your property, promoting maximum returns.
In the end, co-living properties is a win-win situation – happy tenants, satisfied investors
For Investors?
Are you looking to explore the co-living property investment but not sure how to fund the investment? Check out five ways you can afford your dream investment property in Australia.
For more information about co-living property investment or related real investment feel free to chat us up right away.