Introduction:
In today's booming Australian property market, investors have a plethora of options to choose from. Among these, three high-income property investment strategies stand out: Co-Living, Dual Occupancy, and NDIS SDA Properties. Each of these investment avenues offers unique opportunities and challenges, making them worth exploring for investors looking to maximise their returns. Our knowledge and expertise refer to predominantly new builds however may be taken as general advice. Every investor should cater their property investment journey to their own specific needs and this information is for educational purposes only.
Section 1: Co-Living Properties
Co-Living property investment is gaining traction in the real estate market. Unlike traditional rental properties, co-living spaces cater to the needs of young professionals, both singles and couples, who seek more privacy while enjoying the benefits of a shared living arrangement.
What is Co-Living Property Investment?
Co-living properties are designed with individual rooms and private spaces like lockable bedroom and spaces in modern houses, offering tenants the perfect blend of privacy and a built-in social community. This innovative approach has garnered significant attention from investors.
Benefits for Investors:
One major advantage for investors is the ability to maximise rental income by renting out self-contained bedrooms individually. This approach often results in significantly higher rental yields compared to traditional rentals. Even if one room is vacant for a period, income still flows from the occupied ones. Co-living properties in attractive locations, both in capital cities and regional centers, are expected to remain in high demand, ensuring a steady income stream.
Section 2: Dual Occupancy Properties
Dual occupancy properties offer an appealing investment opportunity for those looking to diversify their portfolios. These properties, characterised by 2 totally separate living spaces within a single dwelling/lot, attract a wide range of tenants, including extended families, elderly parents, or adult children.
Factors to Consider:
Investing in dual occupancy properties may involve a more extended process due to permit acquisition and the need for proper separation walls. Additionally, they often come with higher costs than standard homes, as they require specific design features and larger blocks of land.
Benefits for Investors:
Despite the potential challenges, dual occupancy properties can yield higher rental income than traditional single-unit properties. Renting out both living spaces separately allows investors to maximise their rental yield, helping offset mortgage payments and other expenses. Tax depreciation benefits can further enhance cash flow.
Section 3: NDIS SDA Properties
NDIS SDA (Specialist Disability Accommodation) properties present a unique investment opportunity, focusing on providing suitable housing for people with disabilities through the National Disability Insurance Scheme (NDIS).
Understanding NDIS and SDA:
The NDIS, established in 2016, provides support to individuals with disabilities, offering funds to improve their living conditions. SDA refers to specialised housing designed to meet the needs of those with severe physical impairments or demanding support requirements.
Investing in NDIS SDA Properties:
While NDIS SDA properties offer the potential for high returns, they come with a higher cost of entry. Investors must navigate specialist funding requirements, substantial building costs to be compliant and demand research before investing. Challenges such as long vacancy periods and valuation shortfalls can arise if investors do not approach the investment correctly.
Section 4: Investment Considerations
Investing in high-income properties requires careful consideration of various factors, including the cost of entry, potential risks, and rewards.
Comparing Cost of Entry:
Co-living properties typically have a lower cost of entry compared to dual occupancy and NDIS SDA properties. However, each option offers unique opportunities and challenges.
Risks and Rewards:
Co-living properties can provide steady income with lower barriers to entry. Location is also key with co-living and ensuring you're not supplying a product to the market that does not have a demand.
Dual occupancy properties offer higher rental yields but may require more extended permits and investment. Ensure dual occupancy properties are in areas with high demand for family and student housing.
NDIS SDA properties offer substantial high returns but require a significant upfront investment and thorough due diligence. Investors need to be educated on potential returns that may vary rather than set income which based on the needs of participants. We simply don't know what funding package each specific person has. We suggest speaking with an NDIS specialist property agent and funder before stepping into this as even though returns are high the risk factors and variables are also high.
Conclusion:
In the dynamic Australian property market, investors have the chance to explore high-income property investments, each with its unique characteristics. Co-Living, Dual Occupancy, and NDIS SDA Properties cater to different tenant demographics and financial requirements. As an investor, it's essential to weigh the cost considerations, benefits, and risks before choosing the right investment strategy.
Bridge Projects Group works with over 1,000 selling partners across Australia to source the most premium investment properties. We are always interested in helping more people understand the types of high cashflow properties available, and we have access to a variety of property types to suit different investment needs.
Please feel free to register for our mailing list or reach out to Larissa directly at 0401 561 685 / larissa@bridgeprojectsgroup.com.
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