In both European and Asian-Pacific areas, co-living has shown the highest potential to solve housing challenges. This drew the attention of investors and developers in Australia to its potential to solve ongoing housing affordability challenges here too.
Co-Living Being An Appropriate Solution to Homelessness
In Australia, where homelessness is a significant issue and approximately 2.3 occupants and 12 million bedrooms remain vacant, co-living can serve as an effective solution. It can help people live freely and use areas like kitchens, lounges, coworking spaces, and even gyms with private bedrooms. This ensures people’s convenience without compromising their privacy.
Due to its unique idea, it can lower the cost of housing and also make it a suitable option for investors looking to earn high rental earnings. This means that if you are planning to invest and reap high returns, the buildings with such a model can be a great option.
Government Involvement in Co-Living Projects
As the government is facing hardships in meeting the national housing targets, co-living showed a ray of hope. Until now, the government is lagging the 15000 homes against its target of 60,000 homes every quarter. As a result, the government is actively supporting co-living projects to reduce housing affordability challenges.
For example, in Sydney alone, over 90% of co-living activity took place, supported by the NSW government. It means, for first-home buyers, it can be a beneficial solution to their affordability challenges. It will help them to afford the best home at a reasonable price while living a quality life. Furthermore, this approach allows them to easily enter the property market with various property investment options.
Slow Trend Of Co-Living in Australia
Despite the potential to offer a unique solution to housing problems, co-living is overlooked. For example, it has still not been completely adopted due to the taxation issues of tax rebates and GST implications. This made it less attractive from a financial perspective and created challenges for investors and first-home buyers regarding its adoption.
Additionally, complex laws and compliance further hinder the co-living trend from growing. For example, designers and investors need to follow a complex loan approval process for such properties. The expensive cost of land is also troubling the trend of co-living, as in Sydney and Melbourne, where affording land is costly. All these factors have resulted in a slow trend of co-living in Australia.
Therefore, co-living is currently in its initial stage of solving the housing affordability challenges. However, soon, it may show a high trend in Australia, subject to changes in government laws and compliance. It can therefore bring new housing trends to Australia and improve investment opportunities for first-time homebuyers, homeowners, and investors.
For more such information, refer to our website at Nfinity Financials or call us at 1300 GET LOAN or 0456 456 267.
