The Benefits of Investing in Cohousing

Investing in real estate has long been a proven method of building wealth. Within the real estate spectrum, cohousing is a niche that is gaining popularity. Cohousing combines private living with shared facilities, leading to a unique set of advantages for investors. This article takes a closer look at these advantages.

Higher Rental Income

Suppose a standard single-family house in a given region generates a monthly rent of €1000. A cohousing project with similar square metres could consist of four private units and common areas. Each unit could be rented out for €800, lower than the market for a full house, but attractive because of the shared facilities. Total rental income would then be €3200 per month, a significant increase over a single family home.

Reduced Operating Costs

Operating costs for a traditional rental can be 35-45% of rental income. With cohousing, the shared facilities and more efficient use of space can reduce these costs to 25-30%. On an annual basis, for our hypothetical rental income of €3200 per month, this could mean savings of €9600 to €14400.

Increase in value of the Property

Property value growth depends on many factors, but cohousing projects can benefit from higher growth rates because of their unique attractiveness. Suppose the annual value growth rate for standard properties in the region is 3%. A cohousing project could potentially realise a value increase of 4-5% because of its sustainability and community focus. On an investment of €500,000, this could mean an additional annual capital growth of €5000 to €10000.

Social Impact

Although difficult to quantify, the social impact of a cohousing project can indirectly contribute to its value enhancement and attractiveness. This can translate into faster rentals, higher rents and stronger community ties, all of which can contribute to the stability of the investment.

Risk spreading

Diversification within the Property portfolio

Investing in cohousing offers a way to diversify risk within a property portfolio. By investing in a cohousing project, investors can benefit from the unique economic dynamics offered by this model, which can be a welcome diversification alongside traditional rental or commercial property investments.

Immotokens: Your Partner in Cohousing Investments

At Immotokens, we provide detailed financial analysis, market studies and return projections for every cohousing project we invest in. Our aim is not only to provide our investors with attractive returns, but also to contribute to the development of sustainable and close-knit communities. Contact our experienced team to discover how you can benefit from the many advantages of investing in cohousing.

Please note that the above figures are hypothetical and for illustrative purposes. Potential investors should always seek professional financial advice and conduct market research before investing.