Earn double the yield compared to traditional property investing.
A minimum of $900 per week in rental income vs. ~$450 from a traditional investment.
Substantial cash-flow positive investment.
There is a substantial shortage of good quality rental accommodation for tenants to rent at an affordable price. This rental shortage is being exacerbated by first-time home buyers being unable to break into the housing market and being forced back into the rental market.
The median cost for a single person to rent is now in excess of $500 a week for — shall we say — less than attractive accommodation.
A Co-Living Home is a bespoke fully furnished home designed to accommodate three separate individual tenants, affording the investor three separate income streams of a minimum of $300 a week each ($900 per week combined minimum total).
So the advantage for a single person being part of a Co-Living Home is that they will be paying around $300 a week to live in a beautiful, fully furnished home catering for all their needs and requirements. But importantly for the investor, you will be receiving DOUBLE the average rental compared with a traditional investment property.
And if one of your tenants does leave, you will still be receiving two separate income streams whilst a replacement tenant is being sourced.
Co-Living Properties are House & Land Packages. They are all purpose built from scratch with an anticipated construction time of 26 weeks (weather and circumstances permitting).
Co-Living Homes encompass four bedrooms with a double lock-up garage and back garden. There are three main bedrooms (for each individual tenant) plus a media room which, from a resale perspective, will be the fourth bedroom.
Each Co-Living Property comes with a fully comprehensive, upmarket furniture package which includes everything — even down to cutlery, TVs and outdoor furniture.
Co-Living Properties are available in Queensland, Victoria and New South Wales.
Please contact Maurice Watson at The Property Investment Company for up-to-date stock availability and price listings.
Each Co-Living property development group has its own in-house Co-Living property management team tasked with:
Depending on the Co-Living property development group selected, the annual property management fee ranges between 8% (+ GST) and 10% (+ GST). There is also one week's rent payable for each tenant sourced.
For those investors wishing to 100% gear their Co-Living investment property, they could find themselves substantially cash flow positive because they will be receiving double the income normally associated with a standard investment property.
Also, because the property comes with a fully comprehensive, upmarket furniture package, there will be substantial tax deductions to be claimed — along with the usual fittings, fixtures and construction deductibles.
Because for all intents and purposes this is just a standard House & Land package, any bank will be able to fund your Co-Living property without any special conditions or requirements attached.
Your Co-Living property will appreciate in value in line with the growth of standard owner-occupier homes within its location and region.
In fact there is an argument to be put that a Co-Living Home could possibly increase more in value when compared to a standard home, because of its attractive configuration of having three separate bathrooms — which is not the usual configuration for a standard property.
And from a resale perspective, you can on-sell your Co-Living property on the open market to an owner-occupier — for example a family with two children which will savour the attraction of having three separate bathrooms — or to another investor attracted to the elevated rental returns.
For our NSW, interstate and overseas clients, we offer a fully comprehensive in-house service to assist you with putting your whole Co-Living investment package together — either within a Family Trust or any other selected purchasing entity.
We find that these days most people are time poor, so we offer a One Stop Investment Property Service. We do not charge any fees to put everything together for you and to monitor the processes — we get remunerated directly from the developer / vendor (not from you).
You are welcome to avail yourself of an obligation-free holding deposit mechanism. For those clients wishing to secure a Co-Living property without obligation, all that is required is an EFT for $1,000 which is held in trust for you by the vendor's solicitors (100% fully refundable if you do not proceed with your purchase for any reason).