Busting the Myths of Co-living Properties with Melissa Fisher and Ian Ugarte

Introduction

  1. Hosted by Melissa Fisher, a property developer, coach, and business owner passionate about change.
  2. Guest: Ian Ugarte, a property investor, co-living expert, and advocate for ethical housing solutions.

Ian Ugarte’s Journey & Background

  • 32 years in property investment, starting at 18 with his family’s help.
  • Transitioned from negative gearing investments to cash flow positive strategies.
  • Initially focused on large-scale property development but later shifted toward ethical investing and co-living after experiencing burnout and suicidal thoughts.
  • Found his purpose in creating sustainable, community-driven housing solutions rather than profit-driven developments.

The Birth of Co-Living & Invida

  • Discovered New South Wales’ policy on granny flats and boarding houses in 2008-2009.
  • Became an expert in co-living by making mistakes, learning from them, and developing a fully compliant co-living model.
  • Invida (his company) was founded to provide end-to-end solutions for investors:
    • Converting existing homes into co-living spaces
    • Finding and setting up properties for investors
    • Managing co-living properties professionally
  • Core mission: Bringing life back into the housing market by creating affordable, community-driven living spaces.

What is Co-Living?

  • Not just an investment strategy—it’s a community-focused housing solution.
  • Unlike traditional boarding houses, co-living provides:
    • Private bedrooms with ensuite bathrooms & kitchenettes (state-dependent).
    • Shared common areas for social interaction (but designed for privacy).
    • Professional tenants such as nurses, tradies, young professionals, and retirees.
  • The impact: It frees up family homes, making housing more affordable for middle-class families.

Compliance & Legal Considerations

  • Co-living must comply with laws & safety standards:
    • Properties must be classified as 1B buildings.
    • Features include linked smoke detectors, emergency lighting, disability access, and proper insurance.
  • Illegal “three-person models”:
    • Many builders are marketing non-compliant three-bedroom shared models that violate regulations.
    • Ian has exposed and educated builders about these non-compliant designs to prevent legal and safety issues.

Challenges & Ethical Considerations

  • Many town planners and councils resist co-living, assuming it attracts low-income or problematic tenants.
  • The reality: Co-living benefits middle-class professionals and retirees, solving a major housing crisis.
  • Ian emphasizes integrity over profit, ensuring all projects meet compliance standards.

Investment & Financial Benefits

  • Co-living properties generate 2-3 times more rental income than traditional rentals.
  • Typical investor returns: 6.5%–9.5% net, with some reaching double digits.
  • Fully managed by Invida, ensuring tenant stability and reduced vacancies.
  • Low vacancy rates & high demand:
    • Properties are often rented before completion.
    • Investors benefit from strong cash flow and asset appreciation.

The “Unicorn Deal”

  • Ian secured a high-value investment deal through trusted relationships:
    • Purchased land at a 35% discount.
    • Received title before full payment.
    • Partnered with developers for a zero-cost development.
    • Gained six commercial properties and a car park with net cash flow of over $100,000 per year.
  • Lesson: Integrity and long-term relationships lead to unbelievable investment opportunities.

Final Takeaways

  • Ethical investing matters—compliance, tenant well-being, and long-term sustainability are key.
  • Co-living is a necessary housing evolution—solves affordability issues, benefits investors, and strengthens communities.
  • Compliance is non-negotiable—non-compliant investments are legally risky and morally irresponsible.
  • Ian’s journey proves that purpose-driven business models create long-term success.

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