High financial performance investment property

Investing in Co-living Homes

A New Property Investment Opportunity Emerges.

An introduction to the Co-living opportunity.

House sharing, flatmates, people renting out a room. It's nothing new. It has been around forever and will always be around. Across a wide variety of market segments, there is a need for places for people to live that do not need (or want) a whole property for many different reasons. It is a completely unstructured market and a market of significant opportunity for property investors.

ABS figures show that there are around 450,000 people living in 'group households' and forecast this to increase to over 660,000 by 2041 - a 46% increase with more than 200,000 more people living in a shared home. That is a lot more people looking for somewhere good to live.

As the old saying goes, 'there is a gap in the market and a market in the gap'. And, it is an attractive market for property investors. Demand exceeds supply and the opportunity for a clear and structured program to meet this present and growing demand will deliver sustainable, high yields plus the growth advantage that is inherent in freestanding homes.

Meridien's Co-living Homes Programs combine a market-focused, new approach to home design with advanced, fully-integrated management to deliver structured programs into an unstructured market. Think about what Airbnb did to the short-term rental market - it created order in an unorderly market. Meridien's Co-living Homes Programs do exactly the same thing.

Co-living brings a fresh, new high-performance asset class to the market for property investors to achieve more.

Meridien Co-living. New. High-performance investment. Achieve More.

 

It's all about people.

Demand for Co-living Homes comes from a diverse range of people. And, there are a lot of them.

Co-living Homes fill a void in the market for single people from all walks of life seeking quality, personal living solutions. 

Let's start with just 2 distinct, needs-based market segments with demand for Co-living Homes.

 

The Mobile Workforce.

First up, there are those people that are moving around for work. Where they work is not home, but they need somewhere to be at home where they work. The 'gig economy' is creating a more mobile workforce, demand for a diverse range of workers varies across Australia in different places at different times. People move around to meet the economic demands of the market and to work. Taking on long leases on whole properties is costly, inflexible, and with vacancy rates at record lows, there is less accommodation to choose from. 

Co-living Homes fill the void for these people. It is a flexible and affordable approach that provides high-quality living without the hassles and burden of a whole property. 

 

 

Single Seniors.

Growing demand across Australia requires a workable, sustainable solution. 

More and more people are living alone and it is more pronounced in the over 55 population, particularly older females. There are some profound statistics that point to the need for a better match of accommodation to the needs of more people. 

  • By 2041 there will be 3.0 to 3.5 million people living alone - an increase of 1 million people
  • 57% of these people in 2041 will be women
  • 66% of all people over 60 years living alone will be women by 2041
  • Over 23% of group household residents are people over 50 years
  • The number of private renters in the 55-64 age group will increase by 50% to 567,000 by 2031 (not far away)
  • Even more critical, over 65's renting will double to 543,000 by 2031

A number of socio-economic factors are also contributing to demand segment-specific homes;

  • Ever-increasing life expectancy
  • High divorce rates
  • The gender pay gap for women and less superannuation than men
  • Women live longer than men

Then, the dynamics of the property market work against the true needs of the market;

  • Rising property values
  • Rising rents
  • Critically low supply of rental properties
  • Supply patterns of incoming investment properties not matched to needs patterns 

There is a significant lack of ageing-friendly accommodation in the private rental housing sector. Seniors who rent often struggle to find secure, comfortable accommodation that provides them with the security of tenure, affordability, and the ability to 'age-in-place. 

The demand factor for suitable rental homes for seniors will increase by a factor of 3.5 times between 2021 and 2056.

 

What people want.

Understanding what people want is fundamental to providing homes that people will choose to live in.

In the current, unstructured market, a lot of people are compromising and accepting what they can get rather than what they really want. That is because the supply of accommodation is completely random and without any real structure. A lot of accommodation servicing these segments is simply a room and not much else. People want more, and in an extensive survey conducted by our Co-living partners, they clearly had plenty to say about what they really want.

  • A home where people can live with common interests and lifestyles
  • Own, dedicated personal space
  • Own, private bathroom
  • Lockable pantry and storage
  • Fully furnished and ready to live in
  • Air conditioning
  • Realistic rental costs
  • Interactive property management

Supply of the 'right' product is very limited v demand. People looking for the 'right' product are prepared to travel a bit further and pay a bit more to get it because most of all the accommodation on offer out there right now is well below the standards that they are looking for.

There is clear demand (and lots of it) for the right product.

High demand. Co-living Homes opportunity. Achieve More.

 

Homes and programs designed to deliver what people want.

Co-living investment programs combine property with structured, segment-focused programs to meet the needs of a high-demand, growing market.

Home designs are responsive to what people say they want in a Co-living Home. For a start, this sets a reference point that positions Co-living Homes apart from the broader, unstructured 'sharing' market with a clearly defined and consistent product. Co-living Homes are people-focused. Being people-focused means that our Co-living Homes will have an enduring appeal in this high-demand segment. More appeal drives more income and higher investment performance.

Co-living Homes Programs extend well beyond just getting the keys to a new investment property. Our Co-living partner programs provide a fully integrated, structured approach to property investment to clearly define the tenant proposition in the cluttered 'sharing' market. Meridien Invest Co-living delivers a complete service to tenants and a complete program to investors. 

Meridien Invest is working with builders and Co-living program managers across both the seniors and broader sharing markets. 

 

Co-living Property Investment.

The right Co-living product in the right place at the right time drives a higher level of financial performance.

Co-living Homes provide people with an affordable living solution and an appealing place to call home. Your Co-living tenants will pay more for a home that better meets their needs. So, that is why Co-living homes are designed with people in focus. Compared to the 'mish-mash' of shared accommodation on offer in the general market, Co-living Homes are defined by the consistency of design, high standards, and respect for personal space. It is a much more consistent, higher quality offer than what is currently in the market.

How Co-living works for property investors.

  • There are 3 individual tenants in the Co-living Home all on individual tenancy agreements
  • Rental is $250-$300 per week per room - dependent on the local market
  • Total income is $750-$900 per week
  • Comparable income for a standard home is $450 to $500 per week
  • Homes are fully furnished - tenants just move in (some program managers exclude bedroom furniture)
  • Property is fully managed by dedicated program managers

Co-living Homes delivers up to 80% more income than a standard investment property. 

Co-living Homes. In-demand. High-performance. Achieve More. 

 

Click here to learn how to invest in Co-living homes

 

 

 

 

 

 

 

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Plans and images are for illustration purposes only. All prices and information is current as at the published date. Meridien Group does not provide financial or legal advice and does not offer or imply warranties or guarantees of performance. Clients are advised to seek independent legal and financial advice before proceeding.