The Rise of Co-Living: An Investment Trend Fuelled by the Sharing Economy

MELBOURNE, Australia - Feb. 5, 2025 - PRLog -- The continual rise in the cost of living might be the one guarantee we can bet on, but housing prices in Australia have been extreme. Amid government policies and challenging economic conditions, Aussies haven't caught a break. In Brisbane, for example, it is now 67.6% more expensive to have a roof over your head than it was five years ago. ​

While co-living may not have been a traditional go-to solution, it is a welcome reprieve that not only makes housing accessible but could potentially regenerate the village way of living, if cohabitants pair with people who share their values and develop mutual support.

Co-living is a Smart Financial Play

A home can fetch a far higher overall rental income when tenants rent on a per-room basis, an investor can fetch gross rental yields exceeding 8%, compared to around 3.5% for traditional rentals. For example, a standard property renting for $550 per week could generate $1,280 weekly as a co-living setup, without putting renters out of pocket. The bigger implications of this are that more everyday mum and dad investors can secure their retirement outside of relying on their superannuation, positively impacting the overall economy.

The Feminine Edge: Women Shaping the Co-Living Investment Scene

The real estate investment industry is traditionally male-dominated. The need for liquid capital and financial knowledge locks out a large portion of females, especially those who are single and living paycheck to paycheck. The co-living investment model requires less initial investment and offers a lower risk, higher yield outcome.

Ready, Set, Rent! Top Tips for Making Co-Living Work for Investors

1. Local regulations vary and it is up to the investor to do due diligence. Get familiar with the regulations to avoid costly delays due to non-compliance.
2. Research the area's growth potential, proximity to public transport, and demand for affordable housing options.
3. Inclusivity is big. Work with a builder that can cater to a variety of tenants' needs. Co-living, for example, will require en-suite bathrooms and equally-sized bedrooms as well as communal areas that can be shared comfortably. In your paperwork, cater to flexibility in lease terms
4. Adaptable, inclusive spaces will attract a broader range of tenants, increasing occupancy rates and long-term profit​.

As experts in the field, watching as this movement develops and evolves over the next decade will be interesting, the potential for far-reaching positive impact is certainly present if we can navigate the teething stage with care.

-Mox, Investor Partner Group
www.investorpartner.com.au