Co-living Investment - What you need to know

Posted By David Brown

The property market is booming. People are not only struggling to find properties to buy but they are struggling to find rental properties as well. Co-living, also known as share housing presents an exciting opportunity for property investors while also offering a solution to the rental crisis.

What is Co-Living?

In recent years co-living has become a more appealing option for those struggling to afford the rent of an entire house. Co-living properties are designed to create more privacy by offering an individual bedroom with a private ensuite, and other private spaces such as lockable pantries and oversized bedrooms. This offers the tenant privacy of not living with the landlord or owner, but instead with other tenants in the same situation. It also others a sense of community that they would otherwise not experience living alone in a studio.

How does this benefit an investor?

A co-living home with 2, 3, or 4 bedrooms, all self-contained could potentially bring in significantly more rent by leasing the rooms individually compared to leasing the house as a whole. For example, a standard 3-bedroom house would normally achieve $450 per week in rent. Comparing this to a co-living house which has each bedroom rented out for $300 each would bring the property’s potential income to $900. this example is giving the investor double the rent.

What is seniors co-living?

Seniors co-living is the exact same concept as co-living with the difference being it is only positioned toward seniors. Much of Australia’s older population are not homeowners and are restricted with rental choices due to their pension. Offering seniors co-living gives a solution to the rising amount of seniors that are facing homelessness. Furthermore, these homes are designed with increased accessibility, and privacy but also a sense of community.

As there is currently no end in sight to the current rental crisis, co-living is becoming a more appealing option. Investors receive a high yield on their investment property and tenants can find affordable rentals and avoid facing homelessness.