If you’re looking for a prime investment opportunity that is going to help you get the most out of your investment, then it’s time to think about co-living.
These homes are growing in popularity, and provide great returns and positive cash flow opportunities.
What Are Co-Living Properties?
Co-living properties are homes that are purpose-built for multiple tenants, and multiple income streams.
Many prospective tenants are single white collar workers, or young couples looking for affordable housing.
These homes provide the benefits of shared housing for working professionals, but also allow for more privacy.
Many new builds have shared living spaces such as kitchens and living rooms, but private beds and baths.
Benefits Of Co-Living Investment Properties
High Rental Yields
As prices continue to increase in the property market, the demand for co-living arrangements is growing as it provides a more affordable option for many.
By renting out separate rooms to each tenant, it creates a higher rental yield than a normal rental property.
So not only do the tenants benefit from a sense of community and cheaper housing costs, the investor has a higher rental yield.
Multiple Streams Of Income
In addition to a higher rental yield, co-living properties also mean multiple streams of income. Usually when a tenant leaves, there may be a vacancy period where the property owner is not earning any rental income.
Instead with co-living, if one room is vacant, the other rooms will likely still be occupied. One tenant leaving does not mean the investor is left without a rental income for the vacancy period.
With these incredibly innovative properties you can maximise on your return on investment. You essentially have the same maintenance costs as a regular rental property, including management, with the extra income.
Rather than having to maintain and pay for multiple rental properties, you just have one that provides you the same benefits.
Cash Flow Positive
Due to the high rental yields and maximised ROI, these properties are often cash flow positive. The rental income you receive from the property has the potential to exceed the expenses or outgoings for this type of investment property.
This is great for your investment portfolio, and gives you some breathing space while managing your investments.
Growing Market Demand
Rental properties have seen a jump in price in the past few years, with many cities facing a rental crisis. These types of properties are in growing demand as they allow more people to be housed in an affordable manner.
The demand for communal living properties may go up, and even be a necessity for many cities.
It’s an excellent opportunity for property investors to add a high value asset to their portfolio, and there are many co-living developers with new builds available.
If you are interested in a co-living investment property, you can contact the team for our latest, hand selected opportunities.