Why Co-Living and what is Co-Living?
Downsizing is meant to be fun, stimulating and a lifestyle choice … yes or yes?
Retirement Homes or Villages are not for everyone and Nor are Shared Houses suited to all younger people either!
Living alone, in an apartment after living in the family home all those years is not for everyone! Nor is living in a shared house an ideal situation!
You definitely do not deserve to live a lonely life, do you? And I am sure you don’t always want to be in a ‘party house’ either?
Lonely and Cramped, no garden, noisy neighbours and cooking odors lead to increased stress and frustration and why should you have to live like that, retirement is not a punishment, it is a lifestyle.
What is the current situation of supply of suited accommodations for Young Professionals and or Retirement Living options?
A recent report by PricewaterhouseCoopers (PwC) and Property Council Retirement Census Report of last year showed planned development rates for new units has dropped significantly and is a concern for the Australian Government, as more baby boomers head towards retirement, at an increased pace and that more millennials are looking to share accommodation with other like minded young professionals.
The report stated the recent spike in demand from both sectors, meant the country could face a significant shortfall in accommodation in the medium term! Meaning no developers are building enough retirement style accommodations or houses to suit young professionals, yet the need for them is increasing.
Retirement Living and Aged Care developers will help plug the gap, but it will take years for any currently unplanned Retirement Village/Complex to come out of the ground and be completed and ready to occupy. They need land, government support to rezone, plans, permits, budget, building loans and construction. It is a long process from start to finish and most people like you cannot wait this long, and you end up staying in your home longer than necessary and having high costs with upkeep and repairs. Eating into your retirement savings and planning.
Vertical Retirement Living is a growing trend the report shows, with 56% of new villages currently under development were either vertical or a combination of vertical and broadacre … to help fill the gap. But do you want to live in such a development?
For young professionals who do not want nor deserve commune type homes and who want modern, new, fresh homes to share and rent, there is just not enough suited homes to meet this rising demand!
Do you want to live in a Retirement Village?
Most mature adults surveyed want to live in a downsized dwelling, preferably one with a small garden and a patio deck that is also suited to a pet and close to where the family home is/was, because this is where their life is, their friends are and their local shops all wanting continued familiarity of lifestyle. Sound like you?
Most thus do not want an apartment and feel that a retirement village is for older people and not for them. Most surveyed also do not want to live alone in an apartment either. The appeal of a retirement village is having other people close by all the time, but aside from that, retirement villages feel like the beginning of their end and not a pleasant choice, being this major and a ‘final’ choice.
What is your Choice, after you sell the family home or choose to move out of home and don’t want a pokey apartment lifestyle?
Have you heard of Co-Living housing?
Coliving Property is a modern and conducive form of ‘communal’ living, in which residents get a private bedroom in a furnished home with shared common areas and their own en-suite bathrooms. A growing trend in Australia and a wonderful solution to affordable living in the ‘burbs, ideally suited to young upwardly mobile professionals and or retirees who do not want to live in an apartment or live alone.
Co-Living is a typical neighborhood home, with 3 or 4 bedrooms and 3 or 4 bathrooms en-suite, with shared common areas and a garden area too. It is a lifestyle choice!
This new housing concept continues to emerge as a highly sought after solution for people just like you who do not want to live in a Retirement Home or an apartment or alone.
And we all know that lone person households are the fastest growing segment in the residential property space. There are so many ‘single’ mature citizens in Australia and single professionals too, and this number continues to grow, placing high pressure on supply of dwellings to suit. This demand has resulted in the birth of Co-Living housing, which looks and feels just like any new home out there. How great is that.
Another recent survey of lone persons (both professional young Australians and Retirees) resulted in them sharing the following requirements which most people just like you want, such as private bathrooms, private bedrooms, garden space. Most share houses or apartments do not provide for such requirements.
Wouldn’t you just love to live with people similiar to yourself, in a well appointed home, having garden space, shared space and your own private space? How good is that!
Co-living homes are purpose designed new houses that provide individual bedrooms with en-suite bathrooms in what looks like, feels like and is a conventional modern house in the burbs.
Why Invest in Co-Living Properties?
Do you understand the major benefit of rental yields ranging from 7% to 9% per annum and how much of a financial difference that could make to your lives over the life of your investment!
Whether you are a young professional or a retiree … having the ability to lower your living costs is important and allows you to have funds for other purposes so that you can live the live you deserve and want for yourself. Co-Living homes afford your tenants the opportunity to share costs and thus have more $’s for themselves to live or invest.
Aside from being one of the last major decisions you will make and pretty much the final decision, moving into a retirement village can be very costly upfront and also costly on a monthly basis. You have way less space and very little privacy and often very little choice of where and how you want to live.
Is this what you have lived your whole life for? You deserve a whole lot more, your deserve choice of where to live and the lifestyle you want to live in, for goodness sakes, you still have many years ahead of you. It is one life, live it!
Advantages of Co-Living
Co-living is spoken about as “the end of urban loneliness”!
How many people do you know or have heard about who have died earlier than they would have liked to, just because they were lonely? It is a serious problem, none of us should have to live with. And yet there are solutions at hand!
This is a modern form of housing, where residents share living space and a set of interests, values, lifestyle and intentions. Where people living under the same roof value collaboration, social networking, a sharing economy, ease of shopping and cooking, new friendships and openness.
Shopping and cooking for one, is not fun and either leads to a lot of waste or not eating properly. Sounds familiar? Co-Living also has the added advantage of being an effective cost saving for all living in the home. Food, rent, repairs, maintenance, energy, internet and wifi and more.
When sharing a home, you are also sharing common values, shopping and cooking and life becomes more fun. Co-living combines the pursuit of a lifestyle that is focused on community and interactivity that include the perks of privacy when required, plus open spaces and outdoor space too.
Avoid loneliness by actively having enjoyable and important social interaction. Keep the mind and body stimulated and healthy. Loneliness is a big killer!
- Co-Living homes look and feel just like any other new home and located across many suburbs you would be happy to call home.
- Co-Living homes can be 2, 3 or 4 bedrooms, each with their own en-suite.
- Co-Living as an Investment Property
- Coliving investment property are properties which are designed to give you the investor a higher than average Rental Yield.
- The market is showing rental yields of 7% to 9%
- We can even give you access to 3 Year Rental Guarantees of 7% to 8% if that is your preference, managed by industry professionals whose focus is on this particular segment of the rental market. How good is that!
- Where can you invest in a property with yields of 7-9% and also achieve capital growth on your investment?
- Dual key properties which attract investors attention because they yield 5.5% to 6.5%, but unfortunately do not achieve median capital growth and tend to be located in areas you would not pick as your preferred investment location sound good on paper … but compared to an investment grade co-living home, you cannot compare.
Most homes secured for investment purposes tend to achieve rental yields of 3% to 5% with 4% being closer to the average. This means more money out of your pocket to finance your investment you would agree.
A co-living home with say 3 x tenants would attract around $230 – $280 per week per tenant
Meaning around $700 per week or around 8% yield on your investment; compared to 4% on renting to a family.
Compound this with CPI increases over the life of the loan and after 10 years if CPI is 2.5% you could have achieved a Rental Income of $364,000 in a co-living home compared to around $220,000 at a 4% rental yield linked to CPI of 2.5%
If this is a priority you wish to solve, would you prefer $364,000 or only $220k for the same $’s invested?