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Micro-apartments a new investment niche

By Carlie Harris

A small but growing number of developers and investors are looking outside of the traditional property options when it comes to creating in-demand, positive cash flow properties.

The traditional “ideal home” of large bedrooms, multiple living areas and a backyard is not the affordable, nor preferred option for an increasing number of today’s renters.

In line with various state-based planning legislations, savvy developers and investors are making use of policies relating to New Generation Boarding Houses and Houses with Multiple Occupancies to bring more affordable, community-based living to a growing number of renters that see the value in small space living.

The people most often moving into these micro-apartments and multiple occupancy homes are:

  • Single women over 50 (the fastest growing proportion of the population at risk of homelessness)
  • Young professionals (singles and couples) who want to live close to amenities and their workplaces (saving money and travel times)
  • Single parents with a child who need a safe and affordable home

Whilst there may be additional costs in developing a suitable property for this strategy, many investors are reaping the benefits in the way of higher overall rents (multiple small rents as opposed to one rent), as well as higher deductions for capital works and depreciation.

Article Source: Capital Claims

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