Co-living, also referred to as ‘rooming properties,’ facilitates the leasing of individual spaces within a single house, typically accommodating 4-6 individuals. Specialized lenders acknowledge the potential for higher rental income from co-living investment properties, enhancing their serviceability compared to conventional residential properties. The advantages of this investment strategy include significant rental returns, positive cash flow, a consistent tenant base, and the flexibility to attract new occupants. It is important to note, however, that there are associated costs related to furnishing, utilities, and insurance.

Co-living represents a housing solution where multiple tenants share a communal property. These residences are designed for individuals with similar interests, values, and often fall within the same age range. In contrast to traditional communal living, modern co-living arrangements boast unique features that resonate particularly well with millennials, including singles, students, and young professionals seeking a high-quality lifestyle within budgetary constraints.

Young individuals embarking on independent living can now enjoy luxury, comfort, safety, and privacy in urban settings, all at a fraction of the cost of standard home rentals. For homeowners navigating the Australian real estate market, co-living property investment offers a sustainable route to financial freedom. These properties allow for separate tenancies within a single premise, encompassing private bedrooms and bathrooms as well as shared common areas. This accommodation model caters to diverse demographics, including international students and Fly In Fly Out (FIFO) workers.

In the current high-interest rate environment, co-living properties prove to be exceptionally positively geared. Unlike traditional residential investments, co-living bases rental income on individual rooms, rendering it a lucrative option.