New Property Australia

Co-Living

Co-living properties offer investors a higher yield than a standard single family home.

Introduction to Co-Living

Co-Living properties are a new type of multiple income property available to investors. They are purpose-built homes designed to allow separate tenancies within one property. The properties are designed with additional features that enable individual tenants more privacy and often include larger rooms with ensuites, lockable pantries, and storage. Each of the rooms in a co-living home is semi-self-contained and offers a comparable rental opportunity to a micro-apartment.

Co-living homes are generally managed by specialist property managers with experience in this leasing arrangement.

Co-living homes don’t have the same Council approval requirements that a Rooming House or Boarding House has and thus can be built on a standard residential block of land. Co-living instead works on the premise that an investor is allowed to rent out to up to three different parties without the need for any additional local Council approval. In some locations, the local Council rules may allow for additional tenancies within their own specialised Co-living policies.

There may be a need for Covenant approval from the developer in new estates. However, other than this, a Co-living home is the same as a standard residential home; only it has additional bathrooms and storage areas.

Co-Living Benefits

Ideal for investors who wish to:
  • Potential to produce higher yields than a conventional investment home.

  • Great Tax Depreciation

  • Three rental incomes – Provides much higher yield than a single dwelling

  • Only one rates charge

  • Risk mitigation as if one tenant moves out, there are still potentially two tenants paying rent until another suitable tenant is found.

  • Can be built anywhere that a standard house can be built, and don’t require special Council approvals.

  • No Body Corporate fees

  • Can easily be rented out as a single-family home if there is ever a lack of demand for co-living.

  • Some designs can be converted into single dwellings later if required

  • Less capital outlay required than a larger rooming house investment property.

  • Increasing demand from singles and couples for this type of rental.

  • No additional financing requirements for lending as with some other investment property types.

  • Attractive facades and floor plans are easier to design as there are fewer restrictions than other property types.

Example Co-Living Facades

Single Story

Co-Living Floor Plans

From the street, a Co-living home will appear like a normal home. The plans are purpose designed to allow tenants to reside in their own designated area, and provides for a modern form of affordable living. Each floor plan offers the following:

  • Three private bedrooms each with ensuites and split-system air conditioning.

  • An open plan shared living areas with individual lockable pantries.

  • A double garage; or two single garages, which can be designated to specific tenants.

  • A shared laundry with a washing machine and dryer.

Co-Living Design

The above floor plans shows a standard Co-living floor plan that can be used to fit on a small residential block of land.

the demand for co-living rentals

We have discovered a huge demand from young professional tenants for this type of self-contained product. This has only increased in recent times, with the increasing interstate migration putting pressure on an already stressed rental market. It’s predicted that as the international borders re-open, this will only exacerbate the situation. 

For our product, we target areas where there is good demand from tenants and not and not of readily available comparative studio or 1-bedroom rentals.There are a considerable number of singles and couples who require one-bedroom and studio accommodation. According to the Australian Bureau of Statistics (ABS), 23.5% of the total Queensland households are single-person households, and 35.1% are two-person households. 

That means that 58.6% of the total households in Queensland are two persons or less. Yet, according to the ABS number of bedrooms per dwelling data, only 5.2% of dwellings in QLD are one-bedroom, and 15.7% are two bedrooms. Only 20.9% of homes have two bedrooms or less.

So from the ABS data, it can be surmised that there is a massive disconnect between the number of people in a household and the number of bedrooms in available accommodation, with 58.6 % of households in QLD having two persons or less and close to 70% of the available accommodation being 3 – 5 bedrooms plus. Importantly for our studio accommodation, 23.5% of the population in QLD are single-person households, yet only 5.2% of the dwellings are one-bedroom or studio.

This shows that co-living properties serve as an important and strategic class of investment property.

Why wait? Get in touch today...

The team at New Property Australia is readily available to discuss your property investment goals and what the next steps in your property investment journey should be.

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