Micro Apartments & Co Living Melbourne
Smart Investment
Opportunity in Melbourne
Co-living Melbourne: Unlock High-Yield Property Investment
Co living is a model of residential communal living. In this setup, three or more biologically unrelated people reside and live together in the same residential unit. In a nutshell, this arrangement provides shared housing for people who share similar intentions (have a residence for a cheaper rent) and even similar values.
Melbourne and even Sydney have seen a boom in these kinds of arrangements due to the demand for more accessible and affordable accommodations in Australia and the demand for social activities, which are not filled by more traditional options available within the market.
This style of living is attractive to many Aussie professionals and students; investors have noted this demand. As a result many co living properties have sprung up.
The habits of Generations Y and Z drive this phenomenon as location, community and flexibility are among their priorities. Co living meets these needs as they also provide flexibility and current lifestyle wants.
Co living is experiencing plenty of popularity especially in Melbourne, with its charms from Brunswick, Carlton, Collingwood to Fitzroy.
Here at Positive Income Properties we specialise in managing positive cash flow properties.
What is Co-living Melbourne?
Understanding the Co-living Phenomenon in Melbourne
It is a living arrangement where three or more people who are not biologically related to each other live together in shared communal arrangements and with living arrangements that are more flexible than usual.
- Affordability: Co living Melbourne provides a more economical alternative to the usual traditional renting and home ownership.
- Community: Co living has a focus on community. These spaces are shared and are designed to encourage socialisation, collaboration and friendship.
- Convenience: Many of these spaces are fully furnished and even have enjoyable amenities like high-speed internet. You can simplify the moving process with these amenities.
- Higher Rental Yields: Higher rental yields compared to traditional rentals: Multiple tenants help enhance rental income. In particular, a yield above 7% can be seen as good for co living.
- Lower Vacancy Rates: The high demand for well-managed and economical rental properties remains consistent. This means less likelihood of longer vacancy periods due to the high demand for the property.
- Diversified Income Streams: Your rental income will come from your multiple tenants. This is also because of separate rental agreements.
- Potential for Growth: As an area, Melbourne and its market for co living has plenty of potential for growth.
The Melbourne Advantage: Why Co-living Investments Thrive
- Strong Market Demand: Melbourne has a growing population.
- Economic Growth: Melbourne has a strong economy with an estimated output of $249.055 billion. However, Melbourne is also expected to experience population growth. The Melbourne government has estimated that in 2043 the number of people living in the City of Melbourne is expected to increase by 65 percent and reach over 292,000.
- Positive Cash Flow Potential: There is a budding promise for investment in a co living space in Melbourne. This can also mean a higher rental income and a positive cash flow with co living properties.
- Location Focus: There are many areas with booming co living spaces, among them Together Co Living Preston. Melbourne is also a place where housing affordability had become a growing concern. There, co living had become more desirable because many perceived it as a solution to help bridge the gap between high rent prices and a sense of community. It also kept costs manageable.
Benefits of Micro Apartments and Co Living Melbourne
Traditional apartments and other forms of housing are not as affordable for some. Due to the lower costs associated with micro apartments and co living, investors are able to enter the property market at lower costs and diversifying their portfolio with multiple units.
Due to their small size, micro-apartments generally require less maintenance and upkeep, resulting in lower operating costs for property owners.
Melbourne prioritises sustainable development with many eco-friendly properties. This has attracted the attention of environmentally conscious investors.
Plenty of micro apartments are often considered when designing.
Micro-apartments are often designed with energy efficiency and sustainability in mind, making them an eco-friendly choice for environmentally conscious investors.
There is a high demand for micro apartments because of the growing number of students, working professionals and young families needing economic housing.
Getting the Most Out of Co-living Melbourne for Investors
- Strategic Property Selection: Location is crucial for property election. You should choose property in a strategic location – and it has to be one that has proximity to a transportation hub, hospitals, grocery and other amenities. Your workplace ideally should be nearby. Some ideal neighbourhoods include Flemington and Northcote.
- Property Type Considerations: There are many properties that you can focus on.
- Due Diligence: Don’t forget to also do your due diligence. This also extends to property inspections, market research, and understanding local council regulations.
Optimising Rental Income
- Pricing Strategies: Plenty of factors determine rental rates. These include location, amenities and room size.
- Lease agreement: Your lease agreements need to be clear and also cover plenty of grounds.
- Amenities and services: To prospective tenants there are many services and amenities that seem very attractive. These would include high-speed internet due to the common usage of internet and other facilities. This can also justify higher rents. Other examples include shared spaces and regular cleaning.
- Tenant Screening: Screen your tenants thoroughly so that you can ensure your renters are reliable and not just anyone. This can also help minimise potential issues that may arise. Screening your tenants thoroughly can also help you gauge better the kind of people you are entrusting your property to.
Why Should You Invest in Micro Apartments Co-Living and Shared Living Melbourne?
Investing in micro apartments and co living Melbourne has a strong case for viability and feasibility. This can be attributed to the following reasons:
Demand for Affordable Housing
The growth of the Melbourne population is continuously rising. This fuels the demand and need for more economic options for housing; these needs and demand are fulfilled by micro apartments and co living spaces especially among students, professionals and those who seek a flexible and budget-friendly lifestyle. The demand means strong occupancy rates and consistent rental income for investors.
Rental Yields
The efficient usage of space and the capability to accommodate more tenants within a single property in micro apartments and co living command higher rental yields especially if you compare them against traditional larger apartments.
Portfolio Diversification
Diversifying your investment portfolio with micro-apartments and co-living spaces offers a robust risk mitigation strategy. By targeting a distinct segment of the rental market, you establish a more resilient income stream, reducing reliance on traditional tenant demographics and enhancing portfolio stability.
Frequently Asked Questions
Co living in Melbourne is a housing model that prioritises community and shared resources. Residents typically live in private rooms within a larger shared house or apartment complex, with access to communal spaces and amenities.
While the number of residents can vary, co-living arrangements often include shared utilities and may be professionally managed, fostering a sense of belonging and convenience.
You will need around the range of $60,000 to $100,000 per year for a comfortable and flexible lifestyle in Melbourne as a single person.
In co living, you have an individual lease. At the same time, your amenities are included in the rent, and your social interaction with those with whom you share the space is encouraged and facilitated. You will also have access to a kitchenette and usually your own living area.
Meanwhile, in a roommate arrangement, the space is self-managed, and the lease is divided among the roommates.
“Flatmate” and “housemate” are more commonly used in Australia. The term “roommate” in Australia only applies to you if you are sharing a single room.
A good salary in Melbourne that will allow you to live more comfortably (like having time and money for going out and your hobbies) and cover all your living expenses is in the salary range of $80,000 – $100,000 per year.
Invest in Micro Apartments Co-Living Melbourne with Positive Income Properties
Interested in obtaining higher rental yields and diversifying your financial portfolio then investing in micro apartments and co living Melbourne may be an option.
Contact our team at Positive Income Properties today.