What is co-living finance and how does it work?
- Co-living finance provides specialist construction funding for developers building houses in multiple occupation (HMO) — high-quality, self-contained living quarters with shared communal facilities, designed for the growing market of urban professionals seeking affordable inner-city living.
- By funding the build phase, co-living construction loans give developers the capital to deliver projects in fast-moving markets, without the delays and restrictions often imposed by traditional lenders unfamiliar with this asset class.
- With flexible loan terms up to 24 months and no presales required in most cases, CrowdProperty’s co-living finance supports fast build programmes and helps developers move from approvals to a tenanted, income-producing asset.
Why trust CrowdProperty with co-living finance?
Getting funding for co-living projects from the major banks has historically been difficult — even for developers with a strong track record. CrowdProperty’s specialist construction finance is built for developers who understand this market and need a lender who does too. We move quickly, think like developers, and support your project from the first drawdown through to completion.
- Speed: Receive a prompt ‘decision in principle’ (DiP)
- Expertise: CrowdProperty’s property team includes specialists in co-living and specialist housing, with a deep understanding of HMO planning codes, build programmes, and rental market dynamics
- Certainty: Institutional funding support ensures no delays during construction drawdowns, keeping your build programme on track
- Flexibility: Loans structured for a wide variety of co-living formats — from small boarding houses to larger multi-tenancy HMO developments
We offer:
- Transparency: No hidden fees, no surprises — just clear finance proposals you can understand
For all co-living construction loans, we offer:
- Loan sizes up to $10m
- LVR up to 65% of GRV, depending on the location
- Loan terms up to 24 months
- Competitive interest rates from 11% upto 12.50% per annum
- Establishment fees from 2-3% plus GST
- No exit fees (subject to minimum loan term)
- No early repayment fees (subject to minimum loan terms of 6 months)
Features and benefits of co-living finance
- Streamlined application process. Quick, efficient access to funds with an online application and fast indicative response — so you can move quickly in a competitive market for co-living sites.
- Specialist asset class knowledge. Co-living projects are assessed by our property team, who understand HMO planning codes, council requirements, build timelines, and rental market fundamentals — not generalist credit analysts.
- No presales required. Most co-living projects don’t require presales, recognising the strong and growing rental demand for quality HMO accommodation in inner-city markets.
- Expert due diligence and appraisal. Projects assessed by property development professionals with 100+ years of combined experience, including assessment of sponsor risk, site location, and exit strategy.
How it works and things to know
1. Application and evaluation
Submit your project details online. CrowdProperty’s property experts assess project feasibility, developer experience, build programme, and exit strategy — including rental demand and head lease arrangements where applicable
2. Funding
Once approved and agreed, projects are listed on the CrowdProperty platform, where investors pledge funds to the project loan.
3. Drawdown and completion.
Loans are drawn down in stages aligned with build milestones. On completion, the loan and interest are repaid through the agreed exit — typically by refinancing to a long-term investment loan, by sale, or by income from a head lease arrangement.
