WEBINAR AGENDA • • • • • • WHAT IS CO LIVING? WHY IS IT THE ULTIMATE RENTAL CRISIS SOLUTION? WHO MANAGES THE PROPERTIES? WHERE SHOULD WE INVEST? HOW DO WE GET STARTED? WHEN SHOULD WE GET STARTED? • QUESTIONS and ANSWERS • FINISH In the Press A track record of Success Australia's Leading Expert In Affordable Housing Rooming Houses Boarding Houses Micro Apartments Houses of Multiple Occupancy (HMO) Modular & Adaptable Construction Public Speaker, Author Former TAFE Educator DISCLAIMER This presentation and its presenters do not offer any financial advice. Nor do they recommend the information contained in this presentation be construed in any such way. The producer and presenters of this video insist that any financial actions taken by (or on behalf of) the viewer of this material is at the INDIVIDUAL’S OWN RISK and PROFESSIONAL FINANCIAL ADVICE should always be sought after when relating to matters of this nature. WHAT is Co-Living ? The Rental Revolution that had to happen The Problem with most Rental Houses • DESIGNED FOR OLD FASHIONED FAMILY MODEL – Parents and 2-3 kids Homes have large Master Bedroom with Ensuite and 3 tiny kids rooms. • DOES NOT CATER FOR SHARE HOUSING – 3-4 Adults living together Only one tenant gets the Master Suite and the rest suffer the kids rooms. = High Turnover. • DOES NOT CATER FOR MULTI GENERATIONAL FAMILY MODEL The Modern Family - 2-3 Generations living together. Each Generation needs own space. • DOES NOT CATER FOR MODERN LIVING TRENDS People are now spending much more time IN THEIR BEDROOMS on Personal Devices. Modern Living requires BIGGER Bedrooms and SMALLER Living Areas Typical Co-Living Floorplan 5 Master Suite model shown Tenants will pay MORE for LARGER bedrooms and average TENANCIES are much LONGER Each Room is its own Master Suite Quarter house – Double income 2 1 2 96 % 4 Unaffordable rentals Rent $800 toRent $415 $1000 Rent 3 4 $420 Affordabble rentals Source: Department of Health and Human Services Rental Report, June quarter 2017 Unaffordable rentals TRADITIONAL 4BRM FAMILY HOME INVIDA CO-LIVING HOME INSTEAD OF RENTING THE ONE HOUSE RENT THE INDIVIDUAL FIVE ROOMS FOR $350-$390 Per week 1 x House = $650 / week Rent 5 x Rooms @ $360 = $1,800 / week Rent INVIDA CASH CLIENT $78,000 NET CASHFLOW TOTAL SPEND $721,250 GROSS RETURN 15.3% NET RETURN 10.5% ONLY 12 11 AVAILABLE Purpose Built Rental Homes OUR CO-LIVING HOMES ARE SPECIFICALLY DESIGNED TO MAXIMISE INCOME AND MINIMISE COSTS FOR INVESTORS. EVERY BEDROOM IS A MASTER SUITE WITH A KITCHENETTE The majority or tenants will pay a substantial premium for the master bedroom. Every bedroom in a specially designed Co-Living home is a master with generous proportions, air conditioning, fan, TV points, built in wardrobe and private ensuite bathroom. SHARED AND EQUIPPED COMMON AREAS Kitchens come with white goods and cooking gear such as pots, pans, dishes and flatware, but you are welcome to bring your own favourite kitchen tools. Laundry has washing machine and each room has a drying rack. FULLY FURNISHED Furnished rental properties also bring a premium All of our houses come with furnished and fully equipped living, kitchens and laundry tenants just need to bring their own linen. Perfect Solution CO-LIVING SOLVES THE AGE OLD PROBLEMS FOR HOUSE MATES • NO MORE DISPUTES OVER THE MASTER BEDROOM Every bedroom is a LARGE MASTER SUITE with air conditioning, built in wardrobe, and ensuite bathroom. Houses come furnished with fully equipped living area, kitchens and laundry. Just bring your own linen. • NO MORE DISPUTES OVER CLEANING / GARDENING Weekly rent includes an allowance for a fortnightly cleaner to clean common areas plus monthly lawn and garden upkeep. Tenants must maintain their own bedrooms and ensuite bathrooms. • NO MORE DISPUTES OVER UTILITY BILLS Fixed weekly rental also includes Electricity, Wi-Fi and Water bills. Fair Use Policy* applies. Invida installs Power Saving devices to ensure a lower power bill. • NO MORE DISPUTES OVER COMMON AREAS & TV Each home comes with a second living / TV room + covered alfresco area, so lots of private areas for housemates to entertain separately. Plus all bedrooms have a TV point and extra room to relax in your on space. Actual Invida Co-Living houses Invida Furnishing & Styling Invida Furnishing & Styling Invida Furnishing & Styling Invida Furnishing & Styling Benefits for Tenants • PRIVATE SECURE ROOMS - YOUR OWN ENSUITE • AFFORDABLE - FIXED WEEKLY RENT & BILLS • YOUR HOME = YOUR INDEPENDENCE • CO-LIVING = COMPANY (NO MORE LONLINESS) • FLEXIBLE 6-12 MONTH MINIMUM LEASES • FURNISHED LOUNGE & EQUIPPED KITCHENS Benefits for Investors • MARKET DEMAND - RECESSION PROOF INCOME • SOCIALLY RESPONSIBLE INVESTING • MAKE MONEY – 12-14% AVERAGE RETURN • MAKE A DIFFERENCE – RENTAL CRISIS • GUARANTEED INCOME = PEACE OF MIND • LONG TENURES – HOUSE IS NEVER EMPTY • QUALITY TENANTS – VETTED BY INVIDA WHY is Co-Living the Solution To Australia’s Rental Crisis? TIMING IS EVERYTHING ! Interest Rates Builders Housing Shortage NOW IS THE TIME Adaptable Housing Family home / First home owners Secondary dwelling Multi generational family Sibling and Friends Co-Living Share house NDIS/ Disability housing Uplifers 7 7 Different Ways Families shrinking – Houses growing Australian Persons per household 1881 - 2012 Source: Stapledon Paul D. Fran and Philip Soos Families shrinking – Houses growing 35m2 85m2 246m2 1881 1960 2011 MIS-MATCH AUSTRALIA 2011-2016 In 2016, 24% of households in Australia contained only one person, with the most dominant household size being 2 persons per household. # in Household #Bedrooms 259330 BEDROOMS 1&2 PEOPLE 121674 267118 74% 3+ 0 3+ BEDROOMS % OF STATED TOTAL INCREASE 51% 346520 50000 100000 150000 200000 250000 300000 350000 400000 1 & 2 PERSON HOUSEHOLDS % OF INCREASE Source: Australian Bureau of Statistics, Census of Population and Housing 2011 and 2016. Graph created from Information compiled by .id the Population Experts , AUSTRALIA 2016-2021 In 2021, 26% of households in Australia contained only one person, with the most dominant household size being 2 persons per household. # in Household #Bedrooms 687940 BEDROOMS 1&2 PEOPLE 303731 301198 82% 3+ 772226 0 3+ BEDROOMS % OF STATED TOTAL CHANGE 69.5% 100000 200000 300000 400000 500000 600000 700000 800000 900000 1 & 2 PERSON HOUSEHOLDS % OF TOTAL CHANGE Source: Australian Bureau of Statistics, Census of Population and Housing, 2016 and 2021 (Enumerated data). Compiled and presented in profile.id by .id (informed decisions). REGIONAL AUSTRALIA 2016-2021 In 2021, 28% of households in Regional Australia contained only one person, compared with 25.6% in Australia, with the most dominant household size being 2 persons per household.. # in Household #Bedrooms 203263 BEDROOMS 1&2 PEOPLE 69016 80004 79% 3+ 0 3+ BEDROOMS % OF STATED TOTAL INCREASE 72% 256941 50000 100000 150000 200000 250000 300000 1 & 2 PERSON HOUSEHOLDS % OF INCREASE Source: Australian Bureau of Statistics, Census of Population and Housing, 2016 and 2021 (Enumerated data). Compiled and presented in profile.id by .id (informed decisions) The largest changes in the number of bedrooms per dwelling in between 2011 - 2016 were: ● 4 b/rms (+791 dwellings) ● 2 b/rms (+252 dwellings) ● 5 b/rms or more (+244 dwellings) ● 3 b/rms (+114 dwellings) Source: Australian Bureau of Statistics, Census of Population and Housing, 2011 and 2016 (Enumerated data). Compiled and presented in profile.id by .id (informed decisions) CHANGE IN NUMBER OF BEDROOMS PER DWELLING 2011-2016 In 2016, 29% of households contained only one person, compared with 23.8% in NSW, with the most dominant size being 2 persons per household. In 2016, 29% of households contained only one person, compared with 23.8% in NSW, with the most dominant size being 2 persons per household. Source: Australian Bureau of Statistics, Census of Population and Housing, 2011 and 2016 (Enumerated data). Compiled and presented in profile.id by .id (informed decisions) CHANGE IN HOUSEHOLD SIZE 2011-2016 The largest changes in the number of persons usually resident between 2011 and 2016 were: ● 1 person (+798 households) ● 2 persons (+528 households) ● 3 persons (+208 households) ● 4 persons (+130 households) Triple Your Rental Return A Co-Living Rental Property generally offers up to Triple the rental return of a similar sized and quality, standard rental property in the same area. Averages $350-$390 per room per week OR $1700- $2200 rent per house per week WHO manages the properties? INVIDA PROPERTY MANAGEMENT • • • • 15 YEARS OF EXPERIENCE IN THE CO - LIVING SPACE WE MANAGE HUNDREDS OF CO-LIVING PROPERTIES WE SERVICE – QLD, SA, WA & VIC WE UNDERSTAND ALL OF THE LEGALITIES AND ENSURE THAT YOUR PROPERTIES AND LEASING ARRANGEMENTS ARE 100% LEGAL • WE ENSURE AND ALL FIRE AND SAFETY REGULATIONS ARE CONTINUOUSLY MET • MANAGEMENT FEE IS 12% + GST (WE ARE MANAGING 5-6 TENANCIES IN EACH HOME) 2 YEARS JAIL UP TO $182,000 FINE! INVIDA HANDLES THE APPROVALS WHO are your tenants? WE MANAGE YOUR PROPERTIES , VET THE TENANTS AND CREATE HARMONIOUS HOUSEHOLDS White Collar Singles and Couples Blue Collar (trades) Age Groups Essential Services HOW we assess the Rent? COMPLETE FURNITURE PACKAGE INVIDA furnishes and styles your home(s) 3 new INVIDA custom-build opportunities HERVEY BAY Top sea-change destination with strong capital growth & booming rental market. PERTH 2nd fastest growing economy worldwide with huge infrastructure spend. TOWNSVILLE One of Australia’s fastest growing cities with a rental vacancy crisis. HERVEY BAY Regional hub Strong capital growth predicted Top 10 national sea change destination Huge investment in infrastructure Booming rental market with low vacancy Multi-million dollar jobs boom HERVEY BAY PACKAGE PRICE: $799K - $839K RENT: $1560 - $1950 p/w NET RETURN BEFORE TAX: $8-$22K p/a GROSS YIELD: 9.8% – 11.6% CASH ON CASH RETURN: 3.5% - 9.5% HERVEY BAY Cash or equity required: $167K - $230K (4 BED) $174K - $241K (5 BED) PERTH Strategic location for trade One of Australia’s fastest growing cities #2 fastest growing economy worldwide Huge investment in infrastructure Mining, Defence, Agriculture supporting population and jobs growth Financial Readiness PERTH PACKAGE PRICE: $599K - $620K RENT: $1480 - $1850 p/w NET RETURN BEFORE TAX: $16K - $30K GROSS YIELD: 12.4% - 14.9% CASH ON CASH RETURN: 9.4% - 16.3% PERTH Cash or equity required: $130K - $172K (4 BED) $137K - $183K (5 BED) TOWNSVILLE Double population by 2035 Australia’s Biggest Military Base Population growth due to interstate migration Game changing infrastructure planned Tipped to have one of the best capital growth rates in the country. Low $$ entry point for investors TOWNSVILLE PACKAGE PRICE: $749K - $789K RENT: $1400 - $1750 p/w NET RETURN BEFORE TAX: $4K - $17K GROSS YIELD: 9.3% - 11.1% CASH ON CASH RETURN: 1.9 % - 7.4% TOWNSVILLE Cash or equity required: $157K - $215K (4 BED) $165K - $227K (5 BED) 11 PACKAGES ONLY! Book your call to secure one!!! HOW do we get started? 1. SELECT A PROPERTY PACKAGE THAT YOU LIKE 2. TAKE IT OFF THE MARKET WITH AN EXPRESSION OF INTEREST AND FULLY REFUNDABLE $1000 DEPOSIT 3. BOOK A ZOOM MEETING WITH OUR FINANCE EXPERTS WHO WILL CRUNCH THE NUMBERS FOR YOU 4. IF EVERYTHING STACKS UP BY THE NUMBERS THEN WE CAN SIGN “Subject to Finance “ HOUSE AND LAND CONTRACTS 5. IF FOR ANY REASON OUR FINANCE EXPERTS CANNOT GET YOU FINANCE APPROVAL – THE CONTRACTS ARE VOIDED AND YOU RECEIVE A FULL REFUND BY LAW. WHEN should we get started? There’s never been a better time to invest in Co-Living; ONCE IN A LIFETIME RENTAL CRISIS - Vacancy Rates 1% or less nation wide. INTEREST RATE HIKES - are pushing rents up even higher, but no problem for our investors as the properties are still massively positively geared. NEW BUILD STARTS SLOW DOWN the number of new homes approvals has plummeted so the housing supply issues are now predicted to take more than a decade to fix. RECORD IMMIGRATION - Australian government has pledged to bring in 650,000 in the next 2 years. ETHICAL INVESTMENT – Make a Difference AND make Money – be part of the solution to the housing crisis. SET YOURSELF UP FOR RETIREMENT WITH JUST TWO INVIDA PROPERTIES 1 x INVIDA property can net you up to $500 per week after all costs INCLUDING THE MORTAGE are paid. So 2 x INIDA properties will give you up to an extra $1000 a week in income from day one! Or pay off an extra $1000 per week off your home mortgage or investment mortgage. Once paid off your properties you will bring in around $1500 - $2000 per week per property PASSIVE INCOME! So 2 properties gives you $3000- $4000/week or $150,000 - $200,000/ year PASSIVE INCOME! WORK THEN BECOMES OPTIONAL Questions? Let’s start the Q&A Thank you for watching