A new building design is growing in popularity, particularly amongst investors due to the increase of options for tenants and potential increase in rental revenue.

The design is targeting “co-living” or “multi-generational living”, and the basic premise is that each bedroom has a bathroom rather than just having an ensuite for the master plus a shared “family” bathroom for the other occupants of the home.

This opens up a few attractive options:

  • Co-living – Co-living is similar to a share house concept where there are multiple tenants with the difference that each tenant has their own lease, allowing for three separate income streams for the investor. The property is rented furnished – right down to the TV, crockery and cutlery. The tenant moves in with their own sheets, towels and personal items. Their bedroom and bathroom are theirs and they share common spaces. This is attractive for the tenants because they can share their living arrangements without the complexities of managing one lease amongst all tenants. It also improves affordability, reduces loneliness, builds a sense of community whilst still having personal space to retreat to. It’s popular amongst Millenials, Gen Z and Baby Boomers, and the concept has been working successfully in Europe, the Americas and Asia for decades. In Australia it’s most popular in Victoria and Queensland so far.
  • Multi-generational living – Living with your parents or your grown children is growing in popularity due to the escalating cost of housing, the increased desire to keep family close and the prohibitive costs of aged care facilities. This concept allows each family member to have their own space, yet share meals in the kitchen and relax together in the lounge room or outdoor space.
  • A more attractive option to the tenant – Bathrooms are often a contentious point amongst families – especially with growing teens. So more bathrooms is always a good thing

As an investor, the goal is usually to maximise cashflow and capital growth. Capital growth will always be reliant on the location you invest in, but this is a great option to maximise cashflow – in whichever configuration you rent it out due to the versatility and attractiveness of the space.

If this has piqued your interest and you want to be at the forefront of a growing trend or just want to maximise the return on your investment, this could be a great option to further investigate.

 

Floor plan of Home 1

Floor plan of Home 2

Floor plan of Home 3