Answering: Who actually builds purpose-built co-living investment properties in Australia, and how is that different from an adapted house, a fund or a developer’s stock?
Estimated reading time: 12 min read
A purpose-built co-living investment is a building designed from the start as shared accommodation, not a house fitted with extra rooms later. In Australia you can reach a co-living shape four ways: an existing house adapted after purchase, units in a fund or syndicate, a developer’s stock, or a builder-led specialist such as The Harmony Group, which delivers one nine-bed dwelling that you own on a single title.
The tabs on the kitchen bench all say “purpose-built”. One is a three-bedroom house with a couple of extra rooms sketched on. One is a brochure for a fund. One is a price list for someone else’s project. The question is not who uses the phrase. It is what you would own, who designs it, when Class 1b is confirmed, who runs it, and who pays the person advising you.
Harmony builds in Melbourne. Investors come from every state. The team’s product is one knock-down-rebuild site in the middle ring, on which it builds one purpose-built dwelling containing nine rooms and nine bathrooms, alongside shared living space. You own the whole building. Nine people live in it, each on their own lease. A specialist property manager runs it. You are not buying into a fund, a syndicate or a share of someone else’s building.
Key Insights
- Purpose-built means the building was designed as shared accommodation from the drawings, not fitted out after a house already existed.
- Four common paths lead to a co-living shape: an adapted house, a fund or syndicate, a developer selling stock, and a builder-led specialist who delivers one whole building on your title.
- The Australian Building Codes Board describes a Class 1b building as a boarding house, guest house or hostel with a floor area less than 300 square metres that ordinarily has fewer than 12 people living in it.
- In Victoria a rooming-house operator must be licensed before they start operating, and that licence does not replace council registration of the premises.
- Harmony confirms Class 1b before any commitment, and clients pay Harmony $0 because builders pay the fee at settlement.
Table of Contents
- What purpose-built should actually mean
- Four ways people get into co-living
- What each path leaves you owning
- How a Harmony nine-bed is put together
- What to check before you commit to a builder
- Frequently Asked Questions About Who Builds
What purpose-built should actually mean
Purpose-built means the dwelling was planned as shared accommodation from the first drawing. The rooms, the bathrooms, the shared kitchen and living area, and the way people move through the building are designed together. That is a different object from a family house that later has extra bedrooms added or walls moved so more people can rent a room.
The Australian Building Codes Board puts Class 1b in plain language. A Class 1b building is a boarding house, guest house or hostel that has a floor area less than 300 square metres and ordinarily has less than 12 people living in it. A Class 1a building is a single dwelling: a detached house, or one of a group of attached dwellings. Those two classifications are not interchangeable just because both have bedrooms.
Purpose-built co-living or a rooming house: the difference is the longer on-site guide to that distinction. The short version for someone choosing a builder is this: ask when Class 1b is confirmed, and ask whether the building in front of you started as a house. If the answers are vague, the phrase “purpose-built” is doing advertising work rather than design work.
In Victoria the operator of a rooming house must hold a licence from the Business Licensing Authority before they start operating. Consumer Affairs Victoria is clear that the licensing scheme does not change the separate obligation to register the premises with the local council. A builder who cannot tell you how those layers sit next to the building classification is not finished explaining the product.
Four ways people get into co-living
People use the same label for four different purchases. The useful comparison is what you own at the end, who designed the building, when Class 1b is confirmed, who manages the tenancies, and who pays the person talking to you.
An adapted house starts as an ordinary dwelling. Rooms are added or rearranged so more than one household can rent space. You usually own the whole title. The design is a compromise with a house that already existed. Class 1b, if it is obtained at all, often arrives after the work is done. A residential manager or a rooming-house operator may run it. You pay the buyer’s agent or the person who found the house.
A fund or syndicate pools money. ASIC’s Moneysmart page on property funds describes the shape: you buy units in an investment run by a professional manager, the manager selects and runs the assets, and you do not own the building. Class 1b, if it applies, sits with the fund’s buildings, not with a title in your name. The manager is paid from the fund. You pay fees set out in the product documents.
A developer selling co-living stock designs a project and sells dwellings or rooms from a price list. You may own a lot, a room title, or a share, depending on the structure. The developer chose the site and the design. Class 1b may be promised in the contract and confirmed later. Management is whoever the developer appointed. The sales person is paid from the project.
A builder-led specialist such as The Harmony Group selects a site, designs one purpose-built nine-bed dwelling, and delivers it so you own the whole building. Harmony’s method states that 1B Certification is confirmed before any commitment. A specialist property manager runs the nine leases.
The Harmony Group’s co-living page is the product overview.
What each path leaves you owning
| Path | What you own | Who designs it | Class 1b confirmed when | Who manages it | How the adviser is paid |
|---|---|---|---|---|---|
| Adapted house | Usually the whole title of an existing dwelling | The original house, then later works | Often after the works, if at all | A residential or rooming-house manager | You pay the finder or buyer’s agent |
| Fund or syndicate | Units in the fund, not the building | The fund manager | On the fund’s assets, not your title | The fund manager | Fees inside the product |
| Developer stock | A lot, a room or a share, depending on the contract | The developer | Often promised, confirmed later | Whoever the developer appointed | The project pays the salesperson |
| Builder-led nine-bed | The whole building on one title | The specialist team and its partner network | Before any commitment, on Harmony’s method | A specialist property manager | Clients pay Harmony $0; builders pay at settlement |
The table is a briefing tool, not a ranking. A fund can be the right shape if you want units and a manager. An adapted house can be the right shape if you want to own a dwelling that already exists and you accept the design limits. Developer stock can be the right shape if you want to buy into a project already underway. None of those is the same purchase as one purpose-built nine-bed on your title.
Ask each person the same four questions. What do I own when this is finished? Who signed the drawings? When is Class 1b confirmed? Who pays you?
How a Harmony nine-bed is put together
The Harmony Formula, in the team’s own four terms, is nine bed, high-end, good location, established area. What The Harmony Formula is is the on-site explanation of that sentence. The 118-point method selects each site, each property comes with an SQM Research market report with verified rental data, and the team turns down around 85% of the opportunities it assesses. The process can run remotely.
The shape is drawn before a shovel hits the ground. An exclusive partner network covers architects, a builder, hotel fit-out specialists and specialist property managers. The dwelling is nine rooms, nine bathrooms, single storey. Two of the rooms are executive rooms. There is a seven-year structural guarantee.
Harmony’s method states: “1B Certification confirmed before any commitment”. That is the test the reader who is comparing operators asked for. It is not a tax ruling. It is not a planning permit. It is a building classification, confirmed early enough that you are not buying a promise and discovering the classification later.
Clients pay Harmony $0. Builders pay the fee at settlement, and the fee is the same across all builders, so there is no fee incentive to prefer one builder over another. Co-living investment with the team requires a minimum of $600,000 in cash, usable equity, or a combination of both. The people behind The Harmony Group bring 15+ years of specialist accommodation experience.
The Harmony Method is the on-site account of how sites are chosen and how the classification is handled. Read it for the method.
What to check before you commit to a builder
Start with the title. If you would own units, a room, or a share, you are not buying the same thing as a whole building. Harmony’s own line is the useful filter: it is not a fund, not a syndicate, and not a share of something.
Then ask when Class 1b is confirmed. Before commitment is a different answer from “it will be sorted during the build”. The ABCB definition gives you a way to test the answer: floor area under 300 square metres, ordinarily fewer than 12 residents, boarding house, guest house or hostel rather than a Class 1a house.
Then ask who holds the operator licence where one is required, and whether the premises will be registered with council. Consumer Affairs Victoria treats those as separate obligations. A builder who collapses them into one sentence is skipping a layer.
Then ask who pays the person across the table. If the same person is paid by you, by a developer and by a builder, the advice and the sale have been mixed. Harmony’s answer is set out above.
Then ask to see a finished building. Drawings are not a substitute for a room that already has a tenant living down the hall.
If those answers are clear and co-living still does not fit, the honest next step is to stop. If they are clear and you want to understand the product before any conversation with a director, the free education program is the start.
Frequently Asked Questions About Who Builds
Q: Is an adapted house the same as a purpose-built nine-bed?
No. An adapted house started as a dwelling designed for one household. A purpose-built nine-bed is drawn as nine rooms and nine bathrooms plus shared living from the start. You may own the title in both cases. You do not own the same building. Ask when Class 1b was confirmed and whether the drawings began as a house.
Q: Do I own the building if I buy into a co-living fund?
Usually no. Moneysmart describes a property fund as units in an investment run by a manager who selects and runs the assets. You own those units. You do not own the building. That can still be a sensible structure. It is not the same as one nine-bed on your title, with nine people on nine leases and a specialist manager running the place.
Q: When does Harmony confirm Class 1b?
Harmony’s method states: “1B Certification confirmed before any commitment”. That is a building classification under the National Construction Code, not a tax status and not a planning permit. Ask any other operator the same timing question and write the answer down before you pay a deposit.
Q: Can I use a Harmony nine-bed if I do not live in Melbourne?
Yes. The team builds in Melbourne. Investors come from every state. The building is run by a specialist property manager. The process can run remotely. Living in another state does not change what you own.
Q: Does Harmony charge a fee to put the build together?
No. Clients pay Harmony $0. Builders pay the fee at settlement, and the fee is the same across all builders. Co-living investment with the team requires a minimum of $600,000 in cash, usable equity, or a combination of both. The first step is the free education program, not a meeting booked from this page.
See how a purpose-built nine-bed is designed before you pick a builder
The free co-living education program walks through what you would own, how a nine-bed is designed and who runs it, without asking you to book a meeting first. The core can be finished in about 45 minutes. Finish any 9 modules and a booking link opens for a one on one with one of the directors. If co-living isn’t suitable for you, we’ll tell you why.
Related reading if you are comparing how co-living is built
- What co-living investment looks like
- Purpose-built co-living or a rooming house: the difference
- What The Harmony Formula is
- The Harmony Method
- What Class 1b certification means when you invest in co-living
Citations
- Building classifications, Australian Building Codes Board
- Rooming house operators licensing scheme, Consumer Affairs Victoria, last updated 9 April 2024
- Property funds, ASIC Moneysmart, last updated 29 July 2026
General information only. The Harmony Group provides general information about property and co-living investment, not personal financial, tax or legal advice, and does not hold an Australian Financial Services Licence (AFSL). It does not account for your objectives, financial situation or needs, so consider its appropriateness and seek advice from a licensed financial adviser, mortgage broker, accountant or the ATO before acting. Past performance is not a guide to future results and historical figures may not be repeated. The 2027 negative gearing reform was enacted on 26 June 2026 and applies from 1 July 2027. The definition of a new residential dwelling is still being settled after Treasury’s consultation, so whether a nine-bed is an eligible new build remains unsettled. Other tax or regulatory measures described are subject to change.
