In this post let’s understand the concept of co-living & Why coliving in Sydney is popular among millennials?
Co-living is a residential model that accommodates multiple tenants where they have their personal room space but shares common communal areas. Residents generally share a common living room, dining room, kitchen et cetera. Coliving in Sydney is getting more and more popular these days.
From a tenant’s point of view, co-living has economical benefits such as lower rent and affordability, along with environmental and emotional benefits too. Co-living homes are considered sustainable and can offer the residents comfort along with a greater sense of social belonging.
This residential model is perfect for millennials/young professionals/students, basically, anyone who’s looking to save up on rent and utility money and doesn’t mind sharing common areas with other tenants. This is one of the perks that is raising the demand for properties available for coliving in Sydney
Now let’s look at it from an investor’s point of view.
Since its emergence in the 2000s, the co-living asset class has demonstrated consistent growth over the years. The increasing cost of living and lack of affordable housing options in many urban cores across has led to the rapid growth in demand for co-living spaces. Similar trends were seen this decade where coliving in Sydney was in high demand.
- Negative gearing can offer property investors tax benefits. Thus more and more investors desired to own properties which can generate streamlined rental incomes via coliving in Sydney.
- Co-living is the next-gen in residential investment property because it’s for the next-gen! Currently, Gen Y & Gen Z comprises ~ 35.2% of the Australian population, which makes investing in co-living a favourable option! More than 1/4th of the Australian population is dynamic and unattached, either students or working professionals exploring, not settling at one place permanently and on the go!
- Co-living increases rental returns by up to 100%! Similar returns were observed in properties utilized for coliving in Sydney. Every square metre is optimised for rental returns which keeps the cycle of positive cash flow going!
- Multiple rental agreements in a co-living home reduce the risk of occupancy downtime. As a homeowner renting out their apartment, one of the biggest causes for concern is the sudden departure of your tenant. Not only does it upset your regular cycle, but it also provides the added pressure of finding an immediate replacement to keep rental revenue going.
- Another bonus of investing in a co-living is the guarantee of having a steady income from your investment, in the form of the co-living space. Leasing out multiple units ensures that your home is never left unoccupied, given the demand for co-living spaces in the market, presently. This brings us back to the point above, that it would eliminate the threat of sudden vacancies, hence a dip in passive or rental income.
- A constant worry while renting out an apartment is the wear and tear that will be inflicted by your tenants. However, in the co-living model, your home will be spared of the excessive brunt of living damages, as co-living rental leases generally have a strict anti-damages restriction clause and renters may even be penalised healthily for any harm caused to the property, thereby discouraging tenants from being careless.
- Co-living ensures that your real estate investment stays an asset, giving you steady returns and doesn’t become a dead investment. Investing in co-living makes for a dynamic investment opportunity.
Checking these perks there is a high chance that real estate providing coliving in Sydney will remain in high demand amount tenants in future.
Disclaimer: Articles in this blog are just the author’s or authors’ personal opinions. The author or authors cannot be held responsible/liable for any content in this blog. It may or may not be correct. Please do your due diligence and seek professional advice according to your circumstances. How to Interview on Zoom Call. Tips and tricks for interviewing on zoom
