As the housing landscape in Australia continues to evolve, innovative living arrangements like shared accommodation are becoming increasingly popular. As metro areas grow denser and the demand for affordable, flexible housing options increases, communal housing has emerged as an ideal solution that offers lucrative opportunities for investors.
But what is co-living housing, and why is it worth investing in?
What is Co-Living Housing?
Co-living housing, also known as communal living, is a modern arrangement where individuals share a living space. Typically, a shared house will feature private bedrooms with shared communal areas such as kitchens and living rooms. This setup encourages social interaction, making it popular among young professionals, students and even retirees seeking a more social environment.
Co-living properties are purpose-built to balance privacy and communal interaction. High-end shared houses often include features such as high-speed internet, furnished common areas and even housekeeping services. This housing model makes managing living expenses more affordable for residents by splitting costs.
Why Is There a Need for Shared Accommodation?
Purpose-built shared house properties are becoming an increasingly popular choice in Australia because they:
- Meet a Growing Demand: The demand for communal living spaces is being driven by the rising cost of living, coupled with an emerging cultural shift towards minimalism and community living. As more people, particularly millennials and Gen Z, seek affordable housing solutions in inner-city locations, the need for communal living is rising. By investing in shared living properties, investors can tap into an expanding market with a consistent demand for affordable, flexible living arrangements.
- Promote Social Engagement: Purpose-built communal housing is designed to foster social interaction and community building, which can be a significant draw for tenants. In a world where remote work is becoming more common, the social benefits of co-living – such as networking, collaboration and forming meaningful relationships – are highly valued. This increased tenant satisfaction can lead to higher retention rates, reducing turnover and ensuring a steady rental income stream.
What Are the Benefits of Investing in a Shared House or Co-Living Property?
There are several significant benefits to investing in a shared house property, including:
- Maximising Rental Yields: One of the most compelling reasons to invest in communal living properties is their potential for high rental yields. By renting out individual rooms within a single property, investors can generate multiple income streams from one asset. This can significantly boost rental income compared to traditional single-family rentals.
- High Occupancy Rates: Communal properties tend to maintain high occupancy rates due to their affordability and appeal to a broad demographic. With the right location and amenities, shared living spaces can attract a steady influx of tenants, ensuring minimal vacancy periods.
- Diversify Investment Portfolios: Unlike traditional rental properties, communal housing caters to a niche market with unique demands and significant growth potential. This means that shared living properties can be an excellent opportunity for investors looking to diversify their portfolios. Diversifying can be an effective strategy to mitigate the risks commonly associated with property investment.
Find Out More About Shared Accommodation with Positive Income Properties
Communal housing represents a unique opportunity for investors to meet the evolving demands of today’s urban residents. A purpose-built communal living property can be an excellent opportunity for investors who want to tap into a high-demand market with the potential for substantial rental yields and consistent occupancy rates.
If you’re looking to diversify your investment portfolio with a forward-thinking, high-income opportunity, shared accommodation is a smart choice. Contact Positive Income Properties today to learn more about how you can get involved in this growing market.
Gil Elliott is the Managing Director and Founder of Positive Income Properties. Gil has a rich background in business consulting and property investment. All of these he gained in his nearly four decades of experience in the real estate and marketing industries.
