Someone once remarked that in the future, it would not only be workspace that would be shared. Even a home of 1,000 sq ft could be shared by three owners with the living room as a common space.
This is already common in some countries but it’s anybody’s guess how Malaysians will take to the idea.
Well, we could buy together with our best pals while keeping in mind that living together and sharing a common space requires lots of give and take.
Hopefully the relationships we have with those we buy property with are strong enough to withstand the debates of where the sofa should be placed, or even what brand and size of LED TV should be bought.
By the way, this new “lifestyle” will be driven by affordability. According to the South China Morning Post, co-living is common in Hong Kong and it’s no longer just about investing in homes.
In the article, it says that two things are becoming increasingly common.
First: Investments into alternative investment classes which could potentially be giving higher returns than traditional real estate.
Second: Attractiveness of co-living to investors because young people are turning to shared living spaces in a super expensive city i.e. Hong Kong.
The reason co-living is becoming popular is because housing options for graduate students are limited, and renting a flat in Hong Kong could easily take up about 80% of the starting salaries of young professionals.
The article also revealed that between 2015 and 2020, co-living schemes in the city were estimated to provide over 1,200 beds, with rents ranging from HK$2,800 (RM1,458) to HK$20,500.
That compares to an average monthly rent of HK$20,000 in the city.
As for alternative investments, people are now buying car park spaces. The reason? Car ownership in Hong Kong has grown nearly 50% from 409,000 in 2007 to 606,000 in 2017.
But private car parking spaces only increased 9% from 613,000 to 668,000 in the same period.
JLL Property Services, is a global real estate services firm specialising in commercial property and investment management, said that within the last 10 years, car park prices had increased by a compounded annual 16%.
Ladies and gentlemen, this is not a scam.
This kind of returns comes from investing in a car park space in Hong Kong.
That spot in our high-rise home that we do not think too much about thus far is now a form of investment.
It’s important to buy more car park lots when you buy a high-rise unit regardless of whether that development has a walkway to the LRT/MRT station.
As for whether it would increase in price like those in Hong Kong, the answer is a simple, No.
What it will do however, is increase the attractiveness of your unit when you intend to sell.
Imagine all the other units up for sale with only one car park while yours has two.
The premium in future will definitely be more than the original price paid.
This article first appeared in kopiandproperty.com
Charles Tan blogs at property investment site kopiandproperty. He dislikes property speculators and disagrees that renting is better than buying. He thinks it’s either property or poverty. He is presently the CEO of an auction house auctioning assets beyond just properties.