Residential and
Mixed-Use Investments

Mixed-use investments blend residential living with commercial spaces, making them increasingly popular among both investors and owner-occupiers. A mixed-use property might include a café on the ground floor with apartments above, or an office space integrated into a residential block. These types of investments are increasingly popular in Australia, thanks to their versatility and ability to generate multiple streams of income.

According to AHURI research, combining private and social housing in mixed-tenure developments can increase investment flexibility and support neighbourhood diversity. These developments provide a mix of residential and commercial opportunities, which is especially attractive in cities where both housing and commercial space are in high demand. The ability to cross-subsidise affordable housing with private investments makes these developments financially viable while addressing social housing needs.

Additionally, mixed-use properties are proving adaptable to evolving urban planning trends – such as ‘15-minute neighbourhoods’ – with an increasing emphasis on walkable neighbourhoods that encourage interaction and local commerce. This versatility, combined with community-focused urban planning, makes them a resilient option for long-term investment growth.

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What is the future for
residential and mixed-use investments?

The future for residential and mixed-use investments in Australia looks promising. As urbanisation continues, the demand for well-planned mixed-use properties is expected to rise. Cities are placing more emphasis on creating spaces that are walkable and community-oriented, which aligns well with the mixed-use model. Accordingly, local councils are increasingly supportive of developments that reduce urban sprawl by blending residential and commercial uses.

This trend is expected to continue, as it offers a solution to both housing shortages and the growing demand for commercial space in inner-city areas.

However, it’s important to consider that zoning laws and regulations around mixed-use developments may change, impacting potential returns. Staying informed about local council planning trends is crucial for anyone looking to invest.

Why buy
residential and mixed-use investments?

There are several reasons why residential and mixed-use properties can be attractive:

Diversified income streams: Mixed-use properties allow investors to earn rent from both residential and commercial tenants. This helps reduce risk, as you’re not reliant on just one income stream. If demand for residential units drops, commercial tenants may still provide a stable income, and vice versa. As a result, residential and mixed-use investments tend to be more resilient during economic downturns.
Higher occupancy rates: Mixed-use developments often attract long-term tenants, both residential and commercial, as these spaces provide added convenience and lifestyle benefits.
Growth potential: As urban centres continue to grow, mixed-use properties located in prime areas are likely to appreciate in value faster than single-use residential or commercial properties.

Key factors to consider when buying
residential and mixed-use investments

Despite the benefits, there are several factors to consider before purchasing a residential or mixed-use property. Zoning regulations, planning restrictions and local council approvals are key when developing or repurposing mixed-use properties. Potential investors need to carefully assess the location, vacancy rates, existing lease agreements and future development plans in the area. Additionally, the commercial portion of mixed-use properties might be more exposed to market downturns, particularly if the business environment in the area weakens.

Maximising your return on these investments often hinges on selecting the right property in the right location, negotiating strong leases and maintaining a balance between residential and commercial uses.

Why buy with
Costi Cohen?

Buying residential or mixed-use properties without the guidance of an experienced buyer’s agent can expose you to significant risks. Without in-depth market knowledge, it’s easy to misjudge property values, overestimate rental returns or overlook critical zoning regulations.

Working with Costi Cohen, you get access to a team that understands the ins and outs of the commercial property market, including trends, location analysis, and regulatory considerations.

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We manage every aspect of the buying process, from initial research and due diligence to negotiating a fair market price for your investment. Our process has been developed to ensure you find the right property at the right price, taking into account your financial goals and plans.

How to finance the purchase of
residential and mixed-use investments

Financing mixed-use properties can be more complex than standard residential loans. Lenders often view these investments as higher risk, especially if the commercial portion makes up a significant percentage of the property. As such, interest rates may be higher, and the deposit required may be more substantial.

That said, it’s possible to finance your investment through a mixed-use property loan. This loan will be structured differently depending on the property’s use ratio between residential and commercial spaces. Lenders will then categorise the loan under commercial or residential property loans based on this ratio. A commercial buyer’s agent like Costi Cohen can connect you with finance brokers who specialise in structuring these types of loans to help you secure competitive terms.

Explore some of our
Residential and Mixed-Use Investments Purchases