What is Co-living?

Coliving is a modern form of choosing or communal living. Each resident gets their personal and secure living space in a furnished home, but they share common areas to relax and live such as a living room, kitchen and outdoor entertainment areas. In addition, Coliving homes promote interaction by engaging in communal meals and other activities.

Coliving homes are designed and built with a combination of private and shared areas to make living safer, more affordable and more accessible.

ABS figures show that around 450,000 people live in 'group households' and forecast this to increase to over 660,000 by 2041 - a 46% increase with more than 200,000 more people living in a shared home. That is a lot more people looking for somewhere suitable to live.

Co-living for Seniors

It’s all about providing seniors with safe, comfortable rental accommodation with like-minded people.

1 in 3 people over 45 years are lonely, so these people decided to move into shared accommodation.

Being part of a shared community promotes social engagement, offers mutual support, and positively impacts health and quality of life during later years.

Co-living homes are designed to feature a collaborative “community” culture where residents share similar interests and values and look out for each other:

The population of seniors aged over 65 years is forecast to double by 2056.
Around 14% of seniors currently rent, with some commentators predicting approximately 50% of seniors renting by 2056.
As a result, the number of private renters in the 54-64 age group is projected to increase by over 50 percent to 567,000 in 2031.
For those over 65 years old, the increase is more acute, with those renting expected to double in the same time range to 543,000.
There is a significant lack of ageing friendly accommodation in the private rental housing sector. Seniors who rent often struggle to find secure, comfortable accommodation that provides them with the security of tenure, affordability and the ability to age in place.

Co-living for seniors

Co-living for the mobile workforce

A new generation of workers needs inexpensive accommodation for tradespeople, representatives and other business travellers who want to stay close to their place of work. This creates an opportunity for investors to provide high-quality flexible forms of accommodation, such as Co-living.

Most young families can’t afford to buy a house in the city in today’s market. So they must live far away from the workplace and often travel 2-4 hours per day. A co-living home is an excellent alternative for these professional travellers: they live more central to the location or workplace, making their journey shorter and allowing them a reasonable Monday to Friday accommodation.

Co-living homes for property Investors

Co-living homes are the latest trend in a residential investment property, with rental returns by up to 80% compared to a standard investment property. Coliving homes are changing residential investment property as multiple rental agreements decrease the downside of occupancy.

When owning a co-living investment property, you are simply renting one home with various tenancy agreements. The outside looks like a standard home, but internally, it has been optimised for great rental returns by having three (3) or more private self-contained rooms with ensuite plus the shared areas.

How does Co-living work for property investors?

The astute investor understands that investment property is about occupancy. Therefore, the more tenants they have on their property, the more the income stream is protected if a tenant moves out.

If we compare the rental rate between a standard investment property and a co-living home, the colliding home is more affordable because all tenants share the living expenses.

Why is Co-living an excellent investment opportunity?

We are currently experiencing a massive shortage in the rental market, and tenants face difficulties finding good quality rental accommodations due to the high interstate migration and the new standard of working from home. A fully equipped coliving house will share a sense of community and lead to longer tenancies, and you will achieve higher rental income.

Seniors who rent often struggle to find secure, comfortable accommodation that provides them with the security of tenure, affordability, and the ability to 'age-in-place.

The demand factor for suitable rental homes for seniors will increase by 3.5 times between 2021 and 2056. Meridien's Co-living Homes Programs combine a market-focused, new approach to home design with advanced, fully-integrated management to deliver structured programs into an unstructured market.