ResiFund, an Australian residential property fund specializing in residential housing, has recently had a vacancy in their Birkdale property, providing the opportunity to go back out to market and adjust rental prices. In this portfolio update, we hear from Matthew Lewison about the importance of stability in the residential property market, and how ResiFund is addressing the affordability crisis across Australia.
The Birkdale property was the location of ResiFund’s very first acquisition when it launched in 2019. The property was built as a five-unit co-living property and leased out to an NDIS provider, providing stable income for ResiFund’s unit holders. Earlier this year, the NDIS provider decided to end their lease, providing ResiFund with an opportunity to go back out to market.
ResiFund subsequently let the building out to five individual tenants at a total of $1,750 per week, providing more stability of income in the future as rents can be adjusted as leases expire. What’s more, ResiFund only had a vacant property for around a week between tenants, highlighting the depth of the tenant base in the residential property market.
The Birkdale property and other co-living properties in ResiFund’s portfolio tap into the affordability aspect of the housing crisis across Australia. With a shortage of affordable properties, many people are missing out on housing accommodations. ResiFund’s co-living and rooming properties provide a solution for those seeking affordable housing accommodations, allowing them to get into housing accommodation without a huge bond. Tenants are paying around $1,200 in bond and paying rents of between $300 and $400 a week. While this may sound like a lot for a single property, it pales in comparison to the rental prices for one-bedroom apartments in many of Australia’s capital cities.
ResiFund’s solution to the affordability crisis is providing a great service for tenants, and it’s why they’re continuing to see really solid rental growth in the market for rooming accommodations. With the housing crisis in Australia set to continue well into the future, this strong demand for ResiFund’s properties is expected to continue.
Matt notes that Australia’s housing crisis is not going to be solved in the next 12, 24, even 36 months. This shortage is here to stay and it’s going to get worse as immigration increases into Australia. ResiFund’s portfolio update provides a solution for those seeking affordable housing accommodations, and they’re continuing to adjust rental prices to provide more stability of income for their unit holders.
In conclusion, ResiFund’s portfolio update highlights the stability of rental income in the residential housing market and the importance of addressing the affordability crisis across Australia. With their co-living and rooming properties providing a solution for those seeking affordable housing accommodations, ResiFund is continuing to see strong rental growth in the market. As Australia’s housing crisis continues, ResiFund is providing stability for their unit holders and a solution for those seeking affordable housing accommodations.