FAQ

We have a collection of the most common frequently asked questions (FAQs) about property investment, building wealth, and building income that arrives while you are still working. Below, we are going to answer all of them:

Understanding Co-Living Investment

Yes, co-living is legal in Australia when properly certified. Properties must have 1B certification to legally house more than 3 unrelated people. This certification ensures:

  • Fire safety measures and multiple exits
  • Disability access and bathroom facilities
  • Safety compliance for up to 12 residents
  • Council approval and proper zoning

Critical Warning: Many co-living properties in Australia are not properly certified. In Queensland, operating an uncertified co-living property can result in fines up to $166,000 per infringement and up to 2 years jail time. Harmony Group only works with 1B certified properties that meet all safety and legal requirements.

Co-living properties typically deliver 9-12% gross rental yields, compared to 4-5% for traditional residential investment properties. Individual rooms rent for around $380 per week (including all utilities, WiFi, and furnishings).

These higher yields are sustainable due to:

  • Per-room rental model vs. whole-house rental
  • Fully furnished premium offering
  • Professional property management
  • Low vacancy rates (typically under 2%)

Co-living attracts working professionals and specialized workers who value convenience, flexibility, and community:

  • Regional workers: Police officers, nurses, doctors on placement (don’t want long-term lease in temporary location)
  • Young professionals: Career-focused individuals wanting turnkey living solutions
  • Temporary relocations: Corporate workers on 6-12 month assignments
  • Students & graduates: Postgraduate students and early-career professionals

Tenant Profile Benefits:

  • Low occupancy (often away for work)
  • Minimal wear and tear (no pets, no children)
  • Stable income (employed professionals)
  • Long average tenancy (1-2 years)
  • Low maintenance needs

Average occupancy tenure is 1-2 years, with many tenants appreciating the simplicity of moving into a fully furnished room with no lease responsibilities beyond their personal space.

Properly managed co-living properties maintain exceptionally low vacancy rates. Harmony’s specialist property management partners manage 477 rooms with only 6 vacant at any time – a vacancy rate under 2%.

How This Is Achieved:

  • Continuous marketing even at full occupancy
  • Waiting lists for desirable locations (some properties have 55+ people waiting)
  • Pre-placement of new tenants before current tenant moves out
  • Same-day or next-day turnover between tenants
  • Professional cleaning and preparation services
  • 80% rental guarantee (with 50/50 split on income above 80%)

Unlike traditional properties that may sit vacant for weeks between tenants, co-living properties typically have new residents move in the day after the previous tenant leaves.

Yes, larger rooms in co-living properties can accommodate couples. Typically:

  • Maximum one couple per property (maintaining community balance)
  • Couples pay slightly more to cover additional utility usage
  • Same amenities: private ensuite, kitchenette, courtyard access

Yes, many homes are purpose-designed co-living properties that prioritise both privacy and community. These properties have planned layouts, well-equipped communal areas, and amenity features. Our strategic investment approach ensures properties are built to maximise rental returns.

Investment Process & Requirements

For Harmony’s optimal co-living investment model, you need approximately $600,000 in usable equity or cash, covering:

  • 20% deposit on property
  • Furniture and fit-out costs
  • Establishment fees and costs
  • Buffer for settlement

Yes, absolutely. Most Harmony clients already own property. Options include:

Using Existing Property Equity:

  • Release equity from your primary residence
  • Leverage equity from existing investment properties
  • Cross-collateralize across properties (with careful structuring)

For Existing Property Owners:

  • Typical client profile: Mid-40s and up, existing property owners
  • Common goal: Generate cash flow to pay off primary residence faster
  • Strategy: Use high-yield co-living income to accelerate mortgage payoff

Important Consideration: Your borrowing capacity will be assessed based on:

  • Your current income
  • Existing debt commitments
  • Rental income from co-living property (conservative calculation by lenders)
  • Overall serviceability across all properties

Harmony’s Untitled Land Strategy Timeline:

  • Land settlement: 3-6 months from contract signing
  • Build time: 6 months
  • Total timeline: 9-12 months

Harmony’s Unique Advantage – The Untitled Land Strategy:

Rather than buying titled land (which is more expensive and requires immediate financing), Harmony sources untitled land parcels, providing:

  1. Lower land cost (no premium for titled land)
  2. Extended financing timeline (3-6 months before finance needed)
  3. Best location selection (first access to premium sites)
  4. Easier finance approval (more time to structure deals)

Client Payment Structure:

  • 5% deposit on land (at contract signing)
  • 5% deposit on build (when plans finalized)
  • Go unconditional with only 10% down
  • First builder payment triggers when unconditional
  • Remaining payments during construction
  • Settlement at completion

This structure is significantly easier than buying titled land with traditional builds, where finance must be approved within 30-60 days.

We build in Melbourne, across the middle ring, Frankston and a smaller area around Geelong, where a nine-bed co-living property needs no special planning approval. Our investors come from every state in Australia. 

  • Build time: ~6 months
  • Multiple growth corridors and pockets
  • Strong rental demand from diverse employment sectors
  • Yield range: 9-12%
  • Focus areas: Growth corridors with infrastructure development

No special insurance is required beyond standard building and landlord insurance. Co-living properties require:

Standard Coverage:

  • Building insurance (replacement value)
  • Standard landlord insurance (optional but recommended)

Optional Enhanced Coverage:

  • Additional landlord protection for multiple tenants
  • Income protection insurance
  • Loss of rent coverage

The 1B certification actually reduces some insurance risks as properties are built to higher safety standards with additional fire safety measures, disability access, and proper exit provisions.

Your insurance broker will treat the property as a standard residential investment property for premium calculations, though they’ll need to understand the multi-tenancy structure.

Harmony’s Untitled Land Advantage:

The untitled land strategy provides 3-6 months to arrange finance, significantly reducing finance rejection risk:

Timeline Benefits:

  • Sign land contract with 5% deposit
  • Have 3-6 months before land titles
  • Finalize plans and get builder pricing during this period
  • Apply for finance once all details confirmed
  • Time to work through any financing challenges

If Finance Still Difficult:

  • Specialist brokers who understand co-living income modeling
  • Alternative lending structures
  • Equity release options
  • Partnership structures
  • SMSF pathways

Contract Protection:

  • Subject to finance clauses where appropriate
  • Clear milestones before major commitment
  • Ability to withdraw if finance not achievable (with standard deposit loss
  • if withdrawal not within contract conditions)

Success Rate: Most finance challenges can be resolved within the 3-6 month timeline through:

  • Improving serviceability
  • Adjusting loan structure
  • Bringing in additional security
  • Refinancing existing debts
  • Finding alternative lenders

Harmony works closely with mortgage brokers who specialize in investment property and understand how lenders assess co-living income.

Property Management & Operations

As an owner, you don’t manage the property at all – that’s handled entirely by Harmony’s specialist property management partners.

What Specialist Co-Living Property Managers Do:

  • 24/7 on-call service for residents
  • Tenant screening and placement
  • Matching compatible residents for shared spaces
  • Continuous marketing (even at full occupancy)
  • Rapid turnover management (same day/next day placement)
  • Coordination of cleaning between tenants
  • Utility management and bill paying
  • Maintenance coordination
  • Regular property inspections
  • Mediation of any resident issues

Why Specialist Management Is Critical: Standard property managers cannot handle co-living effectively. These are residents, not tenants – requiring a service-based approach:

  • Higher service expectations (hotel-like experience)
  • Multiple residents to coordinate
  • Faster turnover requiring constant marketing
  • Community management between residents
  • Higher touch communication

Harmony Only Uses Proven Managers:

  • Minimum 10-15 years experience in co-living/shared accommodation
  • Proven track record (e.g., 477 rooms with <2% vacancy)
  • Must sign off on every property before Harmony proceeds
  • Provide rental guarantees (80% with 50/50 split above)

Your Involvement:

    • Receive monthly statements
    • Annual income/expense summaries for tax
    • Inspection reports
    • Emergency approvals only (major repairs)

It’s truly a passive investment once tenant is placed.

Professional property management prevents and resolves most resident disputes:

Prevention Strategies:

  • Careful tenant screening and selection
  • Matching residents based on lifestyle, work schedules, and preferences
  • Clear house rules and expectations from day one
  • Private spaces minimize interaction requirements
  • High-quality residents (employed professionals with stable income)

Resolution Process:

  • 24/7 property manager access for immediate issues
  • Mediation services for conflicts
  • Ability to relocate residents if incompatible
  • Clear process for addressing violations
  • Standard residential tenancy dispute processes

Design Reduces Conflict:

  • Private ensuite (no shared bathroom)
  • Personal kitchenette (minimize shared cooking area conflicts)
  • Private outdoor courtyard access
  • Lockable rooms (hotel-room style privacy)
  • Adequate storage in common areas

Reality Check: Most residents are rarely home (working professionals, FIFO workers, regional placements). They treat their room as a base, not a social hub, reducing conflict potential.

Property managers report that properly designed co-living properties have fewer disputes than traditional share houses because:

  • Professional management vs. peer management
  • Clear service expectations
  • Higher quality residents
  • Better designed spaces

All maintenance and repairs are coordinated by the specialist property manager:

Routine Maintenance:

  • Property manager arranges regular servicing
  • Gardening/lawn care (as needed)
  • Pest control
  • Appliance servicing
  • Cleaning between tenancies
  • Smoke detector testing
  • Safety equipment checks

Repairs:

  • Residents report issues to property manager 24/7
  • Property manager assesses and prioritizes
  • Arranges tradespeople from approved network
  • Owners approve major repairs (over agreed threshold)
  • Costs invoiced to owner or deducted from rent
  • All work coordinated without owner involvement

Who Pays:

  • Owner responsible for property maintenance
  • Residents responsible for damage they cause
  • Normal wear and tear covered by owner
  • Bond held for each resident to cover damages

New Build Advantage:

  • First 6-12 months often covered by builder warranty
  • Minimal maintenance in early years
  • Modern appliances under manufacturer warranty
  • New home tax depreciation benefits

Budget Guidance: Most owners budget 5-10% of gross rental income for maintenance and property management fees, though new builds typically run lower in first 3-5 years.

Harmony coordinates a complete furniture package as part of the project:

Included in Each Bedroom:

  • Bed frame and quality mattress
  • Bedside table and lamp
  • Desk and chair
  • Wardrobe/clothing storage
  • Window furnishings (blinds/curtains)
  • Kitchenette appliances (bar fridge, microwave, kettle)
  • Heating/cooling (depending on climate)

Common Areas:

  • Lounge furniture
  • Dining table and chairs
  • TV and entertainment setup
  • Kitchen appliances (full-size fridge, oven, dishwasher)
  • Washing machine and dryer
  • Outdoor furniture for courtyard
  • Cleaning supplies and storage

What Residents Bring:

  • Bedding and towels
  • Personal kitchenware for their kitchenette
  • Personal items and decorations
  • Toiletries

Furniture Package Cost:

  • Typically $15,000-$20,000
  • Included in overall project budget
  • Full tax depreciation over 5-7 years
  • Selected for durability and easy replacement
  • Property manager maintains inventory

Furniture is selected specifically for co-living (durable, easy-care, timeless style) and sourced at wholesale pricing through Harmony’s builder relationships.

Co-living investment with Harmony can be managed entirely remotely:

Remote Investment Process:

  • Initial consultation: Video call to discuss goals and suitability
  • Property selection: Harmony presents opportunities with full data
  • Site visits: Video walkthroughs of land, area tours, comparable properties
  • Contract signing: Electronic signing from anywhere
  • Progress updates: Photos and videos throughout construction
  • Final inspection: Can attend or property manager conducts thorough inspection
  • Tenant placement: Entirely managed by property manager
  • Ongoing management: Monthly reports via email/portal

Why Remote Works:

  • Harmony sources and vets everything
  • Specialist property managers handle all on-ground work
  • New build (not established property requiring personal inspection)
  • Documentation and progress photos throughout
  • Professional pre-settlement inspections
  • Rental guarantee reduces income risk

Interstate Investors: Many Harmony clients are interstate investors leveraging opportunities in different markets from where they live. The professional management structure makes location irrelevant for owner involvement.

International Investors: Some restrictions apply for foreign investors (FIRB approval needed), but process still largely remote with additional documentation requirements.

Mortgage & Equity Strategies

There are several proven strategies to pay off mortgage debt more quickly. These include making extra repayments whenever possible, switching from monthly to fortnightly payments, using offset accounts, and reinvesting rental income. 

With the right property investment, you can create rental income that can be used to make repayments on your home loan. By investing in positive cash flow properties, the rental income exceeds all expenses and generates surplus funds that can be applied to the mortgage principal. Our team can structure your investments and finances to maximise this benefit, combining capital growth with faster debt reduction.

A property equity calculator requires just two inputs: your property’s current market value and your outstanding loan amount. The calculator will show your total equity and your usable equity. This tool is essential for property investors planning to expand their portfolio or homeowners looking to access funds for renovations or debt consolidation. Explore our website to use our usable equity calculator and discover your investment potential.

Offset accounts are transaction accounts linked to your home loan, where the balance offsets your loan balance for interest calculation purposes. For example, if you have a $400,000 mortgage and $50,000 in your offset account, you only pay interest on $350,000. This method can save thousands in interest and help you pay off your mortgage faster without actually making extra repayments. Many property investors use offset accounts as part of their overall loan structure to maximise tax benefits and maintain liquidity.

Preparing a proper loan structure that maximises tax benefits, maintains flexibility, and supports future growth is important. The structure of your loans affects your borrowing capacity, tax deductions, and ability to access equity for future investments. The Harmony Group works with professional mortgage brokers who specialise in creating optimal loan structures.

Returns & Financial Considerations

Co-living properties offer enhanced tax benefits compared to traditional residential investment:

Depreciation Benefits:

  • Building depreciation: available on construction value, as with any new-build investment property.
  • Enhanced fixtures: a nine-bed, nine-bathroom property has more depreciable fixtures than a standard single-kitchen home.
  • Furniture depreciation: the furniture package is depreciable over several years.
  • Capital works: nine bathrooms and kitchenettes mean more depreciable plumbing and electrical fixtures than a standard home.

Gearing: depending on your loan structure, deposit and tax position, a nine-bed co-living property may be negatively or positively geared. Deductible items can include interest, property management fees, maintenance, insurance, council rates and depreciation.

Land Tax Considerations:

  • Each state has different land tax thresholds
  • Co-living property counted as single investment property for land tax
  • Potential land tax liability depends on total landholdings
  • Discuss with tax accountant for your situation

The exact depreciation and net cash flow position depends on your loan structure, deposit and tax position. Always consult with a qualified tax accountant to maximise benefits for your specific situation.

Direct comparison, same $1.5m price:

Standard investment property:

  • Average weekly rent: $865 (whole property)
  • Gross annual rental income: $45,000
  • Gross yield: 3%

High-end nine-bed co-living property (Harmony model):

  • Weekly rent per room: around $380, across nine rooms
  • Gross annual rental income: $179,010
  • Base project cost: $1,574,000 (project cost including additional considerations: $1,650,250)
  • Gross yield: 11.36% on base project cost

Average figures based on most recent projects.

Co-living properties maintain capital growth comparable to traditional family homes because they’re valued based on land and dwelling size, not income:

Valuation Methodology:

  • nine-bedroom properties valued like large family homes
  • Comparable sales: Similar sized homes in same area
  • Land value: Primary driver of long-term growth
  • Building value: Depreciates but maintains utility value

Capital Growth Drivers:

  1. Land Value Appreciation:
    • Location in growth corridors
    • Infrastructure development
    • Population growth
    • Employment opportunities
  2. Property Specifications:
    • Large home size (200-250 sqm typical)
    • Multiple bathrooms attractive to families
    • Large block size
    • Quality construction
  3. Flexibility:
    • Can be converted to family home if needed
    • Can be rented traditionally if co-living market changes
    • 1B certification is valuable for various uses

Historical Precedent:

  • NDIS/SDA properties (similar model) maintained strong capital growth
  • Boarding houses historically appreciated in line with residential markets
  • Purpose-built student accommodation follows market trends

Market Cycle Considerations:

  • Down cycles: High income provides buffer against value declines
  • Neutral markets: Income generation continues regardless
  • Up cycles: Capital appreciation plus income = total returns

Exit Strategy:

  • Sell as investment property to another investor (highest value)
  • Convert to family home (remove co-living use)
  • Rent as traditional house (lower income but broader market)
  • Continue holding for income (often best long-term outcome)

The key is that you’re buying a physical asset in growth areas, not just an income stream. The income is a bonus on top of land appreciation.

Most Harmony co-living investments are cash flow positive (or very close) from day one.

On the nine-bed model, gross rental income is $179,010 a year (around $380 a room across nine rooms) on a base project cost of $1,574,000, an 11.36% gross yield. The net position after finance, management and holding costs depends on your loan structure and deposit, which we model for your situation in the strategy session.

Average figures based on most recent projects.

Standard Investment: No – co-living investment properties must be rented to unrelated tenants:

Why You Cannot Live There:

  • 1B certification requires residents be unrelated
  • Professional property management model requires arms-length relationship
  • Insurance and compliance requirements
  • Rental income calculations for finance based on commercial operation

SMSF Additional Restrictions: If purchasing through SMSF, even stricter rules apply:

  • Cannot be lived in by SMSF members
  • Cannot be rented to SMSF members or related parties
  • Must pass ATO’s “sole purpose test”

Family Member Restrictions:

  • Cannot rent to your children or close family
  • Arms-length tenancy relationships required
  • Professional property management maintains this separation

After Investment Period: If you later want to live there or house family:

  • Convert from investment to owner-occupied or family use
  • Lose tax benefits and investment status
  • May need to repay FHOG or other investor incentives
  • Triggers CGT event if selling within hold period

Alternative If You Want a Property For Personal Use: Co-living investment strategy is specifically for income generation and wealth building, not personal accommodation. If you want property for personal/family use, consider traditional residential purchase instead.

Interest rate rises affect any geared property, and a nine-bed co-living investment is not immune. Gross yield on the nine-bed model runs around 11.36% on the base project cost of $1,574,000, against 3% for a standard investment property at the same $1.5m price, so there is more gross income to absorb a rate rise before the property turns cash-flow negative. Average figures based on most recent projects. The exact buffer depends on your loan amount, deposit and interest rate, which we model for your situation in the strategy session.

Protection Strategies:

  1. Higher Deposit:
    • 25-30% deposit provides larger buffer
    • Reduces interest rate sensitivity
  2. Rate Lock Options:
    • Fix rates for 2-5 years during low rate periods
    • Provides certainty for planning
  3. Offset Account:
    • Park savings in offset to reduce interest
    • Maintains liquidity while reducing costs
  4. Rental Increases:
    • Co-living rents typically increase 3-5% annually
    • Higher base rent means larger dollar increases

Traditional Property Comparison: A standard investment property at around $865 a week becomes negatively geared much faster with rate increases, because there is less gross income to begin with:

  • Limited income buffer
  • Rate increases directly impact cash flow
  • Harder to maintain without external funding

Long-Term View:

  • Interest rates cycle over time
  • Current high rates temporary (historically)
  • Property value appreciation continues regardless
  • Income grows over time while debt remains static

Most investors can weather rate increases if they:

  • Maintain emergency fund
  • Have other income sources
  • Choose properties with strong income
  • Hold long-term perspective

Risks & Considerations

Like any investment, co-living carries risks that should be understood:

Market Risks:

  1. Rental Demand Changes:
    • Economic downturn reducing employment in area
    • Oversupply of co-living properties (why Harmony avoids oversaturated markets)
    • Changing tenant preferences
  2. Mitigation: Harmony’s 118-point data analysis identifies sustainable demand, specialist property managers maintain low vacancy rates
  3. Interest Rate Increases:
    • Higher loan costs impact cash flow
    • Refinancing challenges if rates spike
  4. Mitigation: Higher income buffer than traditional property, rate locking options, offset accounts
  5. Property Value Decline:
    • Market corrections or local economic issues
    • Property not maintaining capital growth
  6. Mitigation: Location selection in growth corridors, diversified employment areas, income provides buffer

Operational Risks:

  1. Property Management Issues:
    • Underperforming property manager
    • Higher than expected vacancy
    • Poor tenant selection
  2. Mitigation: Harmony only uses proven managers with track record, rental guarantees in place
  3. Maintenance Costs:
    • Higher wear and tear than expected
    • Multiple bathrooms/kitchens increase repair costs
    • Tenant damage
  4. Mitigation: New builds have lower maintenance, bonds held for damages, quality tenants reduce issues
  5. Regulatory Changes:
    • Council regulation changes affecting co-living
    • Zoning modifications
    • Building code updates
  6. Mitigation: 1B certification provides strong compliance foundation, properties can be converted to traditional rental if needed

Structural Risks:

  1. Builder Performance:
    • Construction delays
    • Builder bankruptcy during construction
    • Quality issues
  2. Mitigation: Harmony only uses proven builders, construction insurance in place, builder contracts protect buyers
  3. Finance Challenges:
    • Lender pulls out before settlement
    • Valuation comes in low
    • Changed financial circumstances
  4. Mitigation: Specialist brokers, multiple lender relationships, untitled land provides time buffer

Personal Risks:

  1. Life Changes:
    • Job loss affecting serviceability
    • Relationship breakdown requiring asset division
    • Health issues impacting income
  2. Mitigation: Income protection insurance, emergency fund buffer, investment should fit within overall capacity

Risk Summary: Co-living investment is higher risk than primary residence but comparable to traditional investment property, with added risks around specialized management offset by higher income potential.

Market saturation is a legitimate concern that Harmony actively monitors and avoids:

How Harmony Prevents Saturation Exposure:

  1. Continuous Market Analysis:
    • 118 data points tracked per location
    • Real-time vacancy monitoring
    • Pipeline development tracking
    • Employment growth analysis
  2. Geographic Diversification:
    • Builds in Melbourne, across multiple growth pockets
    • Multiple pockets within the Melbourne market
    • Avoid concentrating in single council area
  3. Active Avoidance of Red Flags:
    • Avoiding oversupplied markets
    • Won’t recommend Ballarat despite hospital development (oversupplied)
    • Monitor competitor activity and pull back early
  4. Employment Diversity Requirements:
    • Target areas with diverse employment (not single industry towns)
    • Multiple tenant attraction factors
    • Regional centers with ongoing demand drivers

If Market Becomes Saturated:

Property Flexibility Options:

  1. Convert to Traditional Rental:
    • Rent as large family home
    • Lower income (~$600-700/week) but broader market
    • Still generating return
  2. Sell to Owner-Occupier:
    • Large family homes remain in demand
    • nine bedrooms attractive to large or multi-generational households
    • Multiple bathrooms highly desirable
  3. Maintain with Lower Income:
    • Even at lower occupancy, income likely exceeds traditional rental
    • Rental guarantee provides 80% floor
    • Weather temporary soft markets

Early Warning Signs:

  • Vacancy rates climbing above 5%
  • Rental prices stagnant or declining
  • Increasing supply without demand growth
  • Property manager waitlists shrinking

Historical Context: Similar shared accommodation models (boarding houses, student housing, NDIS properties) have operated successfully for decades through various market cycles because:

  • Fundamental housing shortage in Australia
  • Affordability crisis drives demand for lower-cost options
  • Working professional demand relatively stable
  • Purpose-built properties maintain advantage over ad-hoc conversions

The key is not entering saturated markets in the first place – which is why Harmony’s data-driven selection process is critical.

Quick sales of co-living properties present some challenges but are manageable:

Sale Timeline Expectations:

Optimal Sale (3-6 months):

  • Market to investors (highest value)
  • Demonstrate income history
  • Show property management quality
  • Highlight growth potential
  • Achieve full market value

Fast Sale (1-3 months):

  • Price competitively
  • Market to both investors and owner-occupiers
  • May need to offer some incentive (furniture included, etc.)
  • Accept slight discount for speed
  • Likely achieve 90-95% of optimal value

Emergency Sale (<1 month):

  • Significant price reduction required (10-15%)
  • Auction or cash buyer preferred
  • May need to offer well below market
  • Remove from co-living tenancy to family home presentation

Factors Affecting Sale Speed:

Easier to Sell:

  • Good location in growth area
  • Clean tenant history
  • Well-maintained property
  • Strong rental income documentation
  • Existing property management in place

Harder to Sell:

  • Soft market conditions
  • Property in poor condition
  • Complicated tenancy situations
  • Oversupplied local market
  • Unusual property configuration

Alternatives to Selling:

  1. Convert to Traditional Rental:
    • Immediate while seeking buyer
    • Maintains property income
    • Broadens buyer appeal
  2. Vendor Finance:
    • Offer financing to buyer
    • May achieve higher price
    • Generate income while selling
  3. Rent-to-Own:
    • Find occupant-buyer
    • Higher price potential
    • Solves immediate cash flow
  4. Hold and Wait:
    • Market cycles shift
    • Rental income continues
    • May achieve better price with patience

Liquidity Planning: Investment property should never be your only asset or your emergency fund. Maintain:

  • 6-12 months expenses in liquid savings
  • Adequate income insurance
  • Emergency fund separate from property investment
  • Diversified asset portfolio

Co-living investment is a medium to long-term strategy (5-10+ years ideal). If you need funds potentially within 2-3 years, investment property may not be suitable.

Regulatory changes are possible, though 1B certification provides strong protection:

Existing Regulatory Framework: Co-living properties with 1B certification are already held to highest standards:

  • Fire safety requirements exceed standard residential
  • Disability access mandatory
  • Multiple exit requirements
  • Safety certifications for high-occupancy
  • Council approval process

Potential Regulatory Changes:

Likely Changes (Lower Risk):

  1. Enhanced Safety Standards:
    • Your 1B certified property likely already exceeds new standards
    • May need minor upgrades (additional smoke detectors, etc.)
    • Cost typically minimal ($1,000-5,000)
  2. Registration Requirements:
    • Government registers co-living properties
    • Annual reporting requirements
    • Small administrative burden
  3. Tenant Protection Enhancements:
    • Minimum room sizes (already compliant)
    • Enhanced dispute resolution
    • Clearer tenancy rights

Higher Risk Changes (Less Likely):

  1. Rent Controls:
    • Caps on per-room rental rates
    • Would impact income but unlikely for premium co-living
    • More concern for lower-end boarding houses
  2. Zoning Restrictions:
    • Limits on co-living density in area
    • Existing properties typically grandfathered
    • New developments face restrictions
  3. Operational Requirements:
    • Mandatory on-site management
    • Enhanced safety monitoring
    • Would increase operating costs

Protection Strategies:

Grandfathering: Existing legally compliant properties usually exempt from new requirements or given long transition periods:

  • Your 1B certification provides strong foundation
  • Compliance history demonstrated
  • Established use rights

Property Flexibility: If regulations make co-living uneconomical:

  • Convert to traditional family rental
  • Sell to owner-occupier market
  • Property retains value as a nine-bedroom dwelling

Insurance: Some landlord insurance policies cover regulatory change impacts:

  • Loss of income due to regulatory changes
  • Costs to modify property for compliance
  • Worth investigating when taking policy

Monitoring: Harmony Group monitors regulatory environment and advises investors of:

  • Proposed changes in relevant councils
  • Industry lobbying efforts
  • Compliance requirements
  • Timeline for any needed modifications

Historical Precedent:

  • NDIS/SDA properties faced regulatory changes but maintained viability
  • Student accommodation evolved with changing requirements
  • Boarding houses have operated for decades through various regulatory environments

The key is having a property that’s built to high standards from the start (which 1B certification ensures) and in a location with diversified demand where regulatory risk is lower.

Co-living offers specific advantages and disadvantages compared to alternative high-yield strategies:

  1. Granny Flat Strategy:
  • Co-Living: Higher yield (10-12% vs. 8-10%), purpose-built, lower entry cost
  • Granny Flat: Lower yield, requires finding suitable existing property, higher total cost
  • Winner: Co-living for new investors, granny flat if you already own suitable property
  1. NDIS/SDA Properties:
  • Co-Living: Similar yields, private market (no NDIA dependency), broader tenant market
  • NDIS: Government-backed income, longer leases, specialized requirements
  • Winner: Co-living for most investors (less regulatory complexity)
  1. Commercial Property:
  • Co-Living: Residential zoning, easier finance, better capital growth
  • Commercial: Longer leases, tenant pays outgoings, lower management
  • Winner: Depends on investor goals and capacity
  1. Student Accommodation:
  • Co-Living: Broader tenant market, less seasonal, similar yields
  • Student: Higher turnover, seasonal vacancy, location-dependent
  • Winner: Co-living (more stable demand profile)
  1. Airbnb/Short-Term Rental:
  • Co-Living: Passive management, consistent income, residential zoning
  • Airbnb: Higher potential income, very active management, zoning restrictions
  • Winner: Co-living for passive investors, Airbnb for hands-on operators
  1. Subdivision/Development:
  • Co-Living: Lower risk, faster, less capital intensive
  • Development: Higher potential returns, higher risk, requires expertise
  • Winner: Depends on investor risk tolerance and time commitment
  1. Traditional High-Quality Residential:
  • Co-Living: 2-3x the yield, similar capital growth, specialized management
  • Traditional: Lower yield, simpler management, broader buyer pool
  • Winner: Co-living for income focus, traditional for simplicity

Optimal Portfolio Approach: Many sophisticated investors use co-living as part of diversified strategy:

  • 1-2 co-living properties for cash flow
  • 2-3 traditional properties for capital growth
  • Owner-occupied primary residence
  • Other asset classes (shares, bonds, etc.)

Co-living excels specifically for investors who:

  • Need higher cash flow to offset debt elsewhere
  • Want to accelerate mortgage payoff
  • Are Building an income portfolio
  • Understand property investment fundamentals
  • Can handle specialized asset within portfolio

Property Investment Strategy

A property strategy plan is a complete roadmap that outlines your investment objectives, timeline, property criteria, financing approach, and risk management strategies. It considers your current financial position, future goals, and changing market conditions.

An effective real estate portfolio strategy involves diversifying across different property types and locations, understanding risk tolerance, planning market cycles, and ensuring enough cash flow to support your holdings. 

A good property investment service provides market research, financial planning, property selection, and ongoing management support. Find investment company partners who can understand your goals, provide transparent information about costs and risks, have connections with builders and managers, and give continued support after purchase.

The role of real estate investment firms is to provide guidance, helping you with the complexities of property investing. They provide market insights, identify suitable opportunities, assist with financing, and connect you with valuers, solicitors, and property managers.

Many seasoned real estate investors organise portfolios by property type, location, or investment strategy to manage risk and optimise returns. Some investors focus on co-living housing or regional properties, while others diversify across markets. The Harmony Group acts as a property investment partner and helps you with wealth-building strategies.

Working with The Harmony Group

The Harmony Group specialises in high-yield residential property investments and has expertise in co-living properties. We use 118 data points to evaluate every opportunity, work only with specialist builders and managers experienced in our niche, and maintain complete transparency throughout the process. 

We begin with a free strategy session where we discuss your financial situation, goals, and timeline. From there, we develop a property strategy plan and help you understand your usable equity, structure your finances, and identify properties according to your needs.

You can reach us through our website contact form or by phone at the Harmony contact number listed on our site.

Absolutely. Many of our clients are starting their property investment journey. We explain concepts clearly and guide newcomers through the process. We also understand that property investment is complex, which is why we focus on education and transparency. 

Our investors come from every state in Australia. We build in Melbourne, where a nine-bed co-living property needs no special planning approval, a build takes around six months, and the whole process can be run remotely. 

Financial Planning & Wealth Building

Wealth building can include generating rental income that provides positive cash flow, building capital growth that increases your net worth. It can also be about leveraging that allows you to control valuable assets with borrowed money and equity growth that empowers your plan to expand your portfolio.

Yes, strategic property investment is one of the most effective ways to build income that arrives while you are still working. By building a portfolio of positive cash flow properties, you create passive income streams that can eventually replace your salary.

Generating passive income from real estate involves acquiring properties that generate rental returns. As you pay down mortgages and property values increase, your passive income also grows gradually.

Our core wealth-building strategy is to focus on leveraging existing assets, acquiring income-producing properties, reinvesting cash flow, structuring loans, maintaining tax, and building a portfolio that provides both growth and income.

Building generational wealth with property investment provides lasting financial security. Real estate is a tangible asset that holds long-term value and benefits from decades of capital growth while generating income. 

Financial readiness depends on several factors. These include having a stable income or employment, some equity in your existing home or savings for a deposit, manageable existing debts, and sufficient cash flow to service investment property loans. 

The Harmony Group provides educational resources and sessions to help you understand property wealth creation. We encourage you to book a free consultation where we can discuss your specific situation and goals. 

Getting Started

Ideal Co-Living Investor Profile:

Financial Position: 

✅ Have $400,000+ in usable equity or cash 

✅ Stable employment or income 

✅ Capacity to service additional debt

Investment Goals:

✅ Want to accelerate mortgage payoff on primary residence 

✅ Building an income portfolio 

✅ 5-10+ year investment timeframe 

Risk Profile:

✅ Comfortable with property investment fundamentals 

Self-Assessment Questions: 

✅ Do I understand the tax implications?

✅ Have I researched the co-living market in target areas?

NOT Ideal For: 

❌ First-time investors with no property experience 

❌ Need capital in next 1-2 years 

❌ Cannot afford serviceability buffer for rate rises 

❌ Want to live in or use property personally 

❌ Uncomfortable with specialized property management 

❌ Expect unrealistic returns or guarantees

Self-Assessment Questions:

  1. Can I afford to hold this property if interest rates rise 2%?
  2. Do I have 6-12 months expenses saved separately?
  3. Am I comfortable with 5-10 year hold period?
  4. Do I understand the tax implications?
  5. Have I researched co-living market in target areas?

If you answered yes to most ideal profile criteria and self-assessment questions, co-living may suit your investment strategy.

Harmony Group Investment Process:

Step 1: Initial Consultation (30-45 minutes)

  • Book free strategy session with Harmony
  • Discuss your financial goals and situation
  • Explain co-living investment model in detail
  • Determine if strategy aligns with your needs
  • No obligation – honest assessment if suitable or not

Step 2: Financial Assessment (1-2 weeks)

  • Connect with specialist mortgage broker (if needed)
  • Assess borrowing capacity
  • Review deposit/equity position
  • Pre-approval application (if financing)
  • Structure strategy with accountant/advisor

Step 3: Market Selection & Opportunity Review

  • Harmony presents current opportunities matching your criteria
  • Review locations using 118-point data analysis
  • Understand specific property details and projected returns
  • Q&A on any concerns or questions
  • Time to do your own research and due diligence

Step 4: Property Reservation

  • Sign land contract with 5% deposit
  • Legal review of contracts (your solicitor)
  • Cooling-off period if applicable
  • Reservation of specific land parcel

Step 5: Design & Build Finalization (2-4 weeks)

  • Review and approve building plans
  • Select any customization options
  • Confirm furniture package
  • Sign building contract with 5% deposit
  • Property manager sign-off on design

Step 6: Finance Finalization (During 3-6 month untitled period)

  • Formal finance application
  • Property valuation
  • Final loan approval
  • Loan documents signed
  • Settlement preparation

Step 7: Construction (6-12 months)

  • Regular progress photos and updates
  • Builder inspections and reports
  • Harmony coordinates all builder/council interactions
  • Zero owner involvement required

Step 8: Settlement & Tenant Placement (2-4 weeks)

  • Final inspection (you or property manager)
  • Settlement on land and building
  • Furniture installation and setup
  • Property manager tenant placement
  • Rental income begins

Total Timeline: 12-18 months from initial consultation to rental income Owner Time Investment: Approximately 10-15 hours across entire process

Getting Started Today: Contact Harmony Group to schedule initial consultation:

  • Phone: 1300 902 396
  • Email: contact@theharmonygroup.com.au
  • Website: theharmonygroup.com.au
  • No obligation, honest assessment of suitability

Current Project Access:

Completed Properties: Harmony will have completed Melbourne co-living properties available for viewing by late 2025/early 2026:

  • Schedule walkthrough with Harmony team
  • See actual room layouts and specifications
  • Meet property manager in person
  • Talk to tenants (with their permission)
  • Understand day-to-day operations

Under Construction:

  • Site visits to properties under construction
  • See building progress firsthand
  • Meet builders and understand quality standards
  • Review surrounding area and location

Comparable Properties: Until Harmony-specific projects complete:

  • Visit similar co-living properties in target areas
  • Understand market positioning and competition
  • See what other models look like
  • Identify quality differences

Virtual Tours: For interstate investors or during construction:

  • Detailed video walkthroughs
  • 360-degree virtual tours
  • Drone footage of locations
  • Video calls with property team on-site

Property Manager Facilities:

  • Meet property managers at their offices
  • See their systems and processes
  • Review vacancy rates and tenant placement success
  • Understand their approach to resident management

Area Tours: Harmony can arrange:

  • Guided tours of target suburbs
  • Highlight employment drivers and amenities
  • Show comparable property sales
  • Explain local market dynamics

What You Won’t See:

  • Can’t tour occupied properties (resident privacy)
  • Limited access during tenant-sensitive times
  • Builder sites have safety restrictions

Recommendations:

  • Do visit if possible – helps you understand product
  • Interstate investors often invest after comprehensive virtual tours
  • Property manager meetings more valuable than property tours (you’re buying the management, not just the bricks)

Booking Inspections: Contact Harmony Group to schedule:

  • Best during normal business hours
  • Advance notice required (2-3 days)
  • Can combine with multiple site visits if needed
  • Bring your partner/advisor if you like

Post-Settlement Harmony Support:

Immediate Post-Settlement (First 3 months):

  • Property manager introduction and briefing
  • Review of tenant placement process
  • Ensure all systems functioning correctly
  • Address any building defect issues with builder
  • Connect you with accountant for depreciation schedule (if needed)

Ongoing Relationship:

  • Annual check-in on property performance
  • Market updates on your specific location
  • Advice on reinvestment or portfolio strategy
  • Connection to additional investment opportunities
  • Network of trusted professionals (accountants, brokers, lawyers)

Problem Resolution:

  • Liaison with property manager if issues arise
  • Builder warranty claims (first 12 months)
  • Council or compliance questions
  • Strategic advice on property decisions

Portfolio Growth:

  • Notification of new opportunities matching your profile
  • Advice on optimal timing for additional investments
  • Portfolio review and rebalancing recommendations
  • Introduction to complementary strategies

What Harmony Does NOT Provide:

  • Day-to-day property management (that’s property manager’s role)
  • Ongoing financial advice (use your accountant/planner)
  • Guarantees on income or capital growth
  • Emergency repair coordination (property manager handles)

Property Manager’s Role (Ongoing):

  • Monthly financial statements
  • Quarterly inspection reports
  • Tenant management and placement
  • Maintenance coordination
  • 24/7 emergency response
  • Annual income/expense summaries
  • Rental review and market positioning

Typical Owner Involvement Post-Settlement:

  • Review monthly statements: 10 minutes/month
  • Annual tax preparation: 1-2 hours/year with accountant
  • Major repair approvals: As needed (rare for new builds)
  • Annual property strategy review: 1 hour/year

Long-Term Partnership: Many Harmony clients purchase multiple properties over time:

  • Second property after 2-3 years
  • Portfolio of 3-5 co-living properties generating $200K+ annual income
  • Transition to property portfolio management
  • Referrals of family/friends to Harmony

Harmony’s business model is built on long-term relationships and repeat clients, not one-off transactions. Your success is Harmony’s success.

Harmony Group stands out through our data-driven, client-focused approach to co-living investments:

  • Untitled Land Strategy: Unlike many providers who require immediate financing for titled land, Harmony sources untitled parcels for lower costs, extended timelines (3-6 months to finance), and premium site selection.
  • Comprehensive Data Analysis: We evaluate locations using 118 data points from SQM Research, avoiding oversaturated markets, competitors often overlook this depth.
  • Specialist Partnerships: Exclusive use of proven property managers with <2% vacancy across 477+ rooms and 80% rental guarantees, ensuring passive, high-yield (10-12%) performance.
  • Focus on Melbourne, where a nine-bed co-living property needs no special planning approval, rather than spreading thin across Australia. This model has helped clients achieve superior net returns while minimizing risks, making Harmony ideal for mid-career investors building passive income.

Yes, Harmony Group’s co-living properties incorporate sustainable features to appeal to eco-conscious investors and tenants, aligning with Australia’s housing sustainability trends:

  • Energy-Efficient Design: Built to 7-star NatHERS ratings with solar-ready roofs, LED lighting, and double-glazed windows, reducing energy use by 20-30% vs. traditional homes.
  • Water Conservation: Rainwater harvesting, low-flow fixtures in multiple ensuites, and drought-resistant landscaping in private courtyards.
  • Material Choices: Use of recycled steel, low-VOC paints, and sustainable timber to minimize environmental impact during construction.
  • Tenant Benefits: Shared utilities encourage efficient usage, with many properties achieving lower carbon footprints per resident than single-family homes.
  • Investment Angle: These features qualify for green depreciation benefits and attract premium tenants (e.g., young professionals valuing sustainability), supporting stable 9-12% yields. Harmony prioritizes locations with public transport access to reduce car dependency. Consult your advisor on potential green incentives like the Australian Government’s Sustainable Homes program.

Yes, non-residents can invest in Harmony Group’s co-living properties, subject to Foreign Investment Review Board (FIRB) approval, making it accessible for international investors seeking high-yield Australian real estate:

  • FIRB Requirements: Approval is typically granted for new builds (like Harmony’s untitled land strategy) as they add to housing supply. Existing properties may face restrictions.
  • Process: Apply via FIRB online (fees ~$14,000+ depending on value); approval takes 30-40 days. Harmony assists with documentation.
  • Financing: Limited to Australian lenders or international options; expect 30-40% deposits and higher rates for non-residents.
  • Tax Implications: 12.5% withholding tax on rental income; CGT on sale (potentially reduced via treaties). Use a specialist accountant for double taxation avoidance.
  • Benefits: 9-12% yields in AUD, capital growth in growth corridors, and remote management for overseas owners. Restrictions: Cannot use for personal residence without additional approval. Harmony has supported international clients in the Melbourne market, contact us for guidance.

Transitioning involves assessing your current portfolio and pivoting to higher-yield co-living:

  • Evaluate Existing Assets: Use equity from your traditional rental (e.g., via refinancing) to fund a co-living deposit (~$200,000). Harmony’s untitled land strategy gives 3-6 months to structure this without immediate pressure.
  • Conversion Option: If suitable, retrofit your property for 1B certification (adding ensuites/kitchenettes; costs $100,000-$200,000), but new builds often yield better (10-12% vs. 4-5%).
  • Steps: Consult a specialist broker for serviceability, get tax advice on CGT/depreciation shifts, and partner with Harmony for location analysis. Expect 6-12 months total.
  • Benefits: Boost income by 2-3x while retaining capital growth; many investors keep traditional properties for diversification. This is ideal if your traditional rental underperforms, contact Harmony for a free assessment.

Co-living often outperforms alternatives with less risk and complexity:

  • Vs. Granny Flats: Avoid $300,000+ renovations and land constraints; nine-bed co-living new builds cost around $1.57 million (base project cost) for $179,010 a year in gross rent, average figures based on most recent projects, plus full depreciation.
  • Vs. NDIS/SDA: Less regulatory dependence (no NDIA approvals needed); broader tenant pool (professionals vs. specialists) reduces vacancy risks, with comparable 9-12% yields.
  • Switching Rationale: If your current strategy faces oversupply (e.g., NDIS markets) or low yields, co-living provides stable demand in Melbourne’s growth pockets.
  • Transition Tips: Sell or refinance your existing asset; use proceeds for co-living entry. Harmony’s data-driven model ensures sustainable shifts, yields can increase 50-80% net. Consult your advisor; many investors hybridize (e.g., keep one granny flat, add co-living for cash flow).

Conversion is possible but new builds are often superior for Harmony clients:

  • Conversion Process: For an existing house, add 1B certification (fire safety, ensuites; $150,000-$250,000 cost, 3-6 months). Ensure zoning allows; not all properties qualify.
  • Pros: Uses existing equity, faster entry if land-owned.
  • Cons: Higher retrofit risks (e.g., structural issues), lower depreciation than new builds, potential council hurdles.
  • New Build Preference: Harmony’s model starts at around $1.57 million base project cost with purpose-built design, warranties, and 9-12% yields from day one, plus tax benefits like 2.5% building depreciation.
  • Recommendation: Convert if your property is in a high-demand area; otherwise, sell and reinvest in new co-living for optimal returns. Harmony can assess viability via video consultation.

A property investment offers several advantages that help you build wealth over the years. For instance, unlike other investments, real estate can generate passive income through rental returns, while offering potential capital growth. Investing in property may also have specific tax advantages.

The key benefits of investing in property are reliable rental income, building equity as your property increases in value, accessing tax benefits through deductions on investment property expenses, and creating income that arrives while you are still working. Investment in properties can also help you pay off your mortgage faster by redirecting rental income towards your home loan.

Not necessarily. Many property investors use the equity in their existing home rather than paying cash for the deposit. Our usable equity calculator can show you how much you can access from your current property. Our team of property investment experts at The Harmony Group also helps identify the best approach based on your financial situation.

Property investment companies provide expert guidance to the investors throughout their investment journey. The Harmony Group helps create a tailored and intentional strategy, identify high-growth areas through market research, and connect you with reputable builders and property managers.

When searching for property investment companies near you, consider tracking their previous record, specialisation and transparency of their property investment service. At The Harmony Group, we specialise solely in high-yield property investments and co-living properties, using 118 metrics that determine optimal investment opportunities across Australia.

Next Steps

Book a free strategy session with our property investment team to discuss:

buying property interstate

Still Have Questions?

We’re here to help you navigate your property investment journey. The Harmony Group offers the expertise and support you need.

Contact us today to begin building the financial future.

Book Your Free Strategy Session