Busting the Myths of Co-living Properties with Melissa Fisher and Ian Ugarte
Introduction
- Hosted by Melissa Fisher, a property developer, coach, and business owner passionate about change.
- 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.
Next Steps
- Come and see Ian at the March Bootcamp. If you haven’t got your ticket. CLICK HERE
- Contact Ian Ugarte & Invida for co-living investment opportunities.
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