Australia’s rental crisis has intensified, with rising rents potentially leading more people to seek shared housing or move in with relatives. According to Commonwealth Bank Australia’s (CBA) latest economic insights report, rental prices are increasing at their fastest rate in over a decade, largely due to demand exceeding supply.
As a result, household living arrangements are beginning to change. A growing number of Australians appear to be opting for shared living to manage costs. The report indicates that around 5% of Australians over the age of 15 now live in shared housing, a 1% increase from 2020-2021, representing approximately 200,000 additional people.
The co-living market in Australia could expand significantly. Some estimates suggest the sector might generate approximately USD 5.8 billion in revenue by 2030, with a compound annual growth rate of 14.8% from 2025 onwards.
Neil Gibb, a UK native based in Perth, Australia, is involved in the shared housing sector. He is the Founder and CEO of The HMO Property Co and The Coliving Collective, which aims to focus on property investments that generate cash flow.
According to Gibb, his work seeks to address three key challenges in property investment:
Helping investors potentially secure high-yield opportunities.
Providing strategies that may help achieve a debt-free property portfolio within 10–15 years.
Developing affordable, community-focused housing solutions that aim to align tenant needs with strong investor returns.
As shared housing demand increases, co-living models and investment strategies are likely to continue evolving in response to market conditions.
Early Life and Career Beginnings
Gibb grew up in England and experienced significant personal challenges, particularly due to his father’s battle with Huntington’s disease. Witnessing his father’s struggles appears to have motivated Gibb to take control of his future. In 2010, he relocated to Australia, where he had to start anew, building connections and establishing his career.
His entry into real estate began with attending property investment seminars, where he learned strategies that he reportedly successfully implemented. By 2014, he started investing in Houses of Multiple Occupants (HMOs) or co-living properties, which ultimately enabled him to replace his income with rental cash flow by 2019. Since then, he claims to have helped over 250 investors in securing positive cash-flow investment opportunities.
Founding of The HMO Property Co and Challenges Faced
Photo Courtesy: Neil Gibb
Gibb founded his property management business in 2017 to oversee his growing portfolio. In 2018, he expanded into HMO after investors sought his help in transforming their negatively geared properties into positive cash-flow assets.
However, the Australian banking sector initially did not recognize co-living properties as viable investments, creating significant financing challenges. To overcome this, Gibb and his team focused on acquiring larger properties through conventional loans and implementing strategies to maximize rental yields within regulatory guidelines.
Beyond financing hurdles, the company also faced regulatory roadblocks. Many local councils in Western Australia were unfamiliar with the co-living model, making it difficult to obtain building permits. By leveraging their proven track record in property management and educating councils on their approach, the company eventually secured approvals for new-build projects.
A pivotal moment for The HMO Property Co came in 2021 when a new lender recognized co-living properties as viable investments, enabling investors to secure loans covering 80-90% of costs. This development reportedly significantly accelerated business growth. Currently, the company has approximately 150 properties under construction, with several flagship projects nearing completion in Bayswater. These projects are expected to showcase the company’s evolving approach to co-living developments.
Future Expansion and Development
The HMO Property Co continues to expand its scope by moving into the redevelopment of older commercial properties into residential units. A recent project involves converting an old commercial property into housing, a move that aligns with their goal of repurposing existing structures to increase housing availability.
In addition to its Western Australian operations, the company is planning expansion into Melbourne. Given the cyclical nature of real estate markets, Gibb and his business partner, Troy Felt, anticipate Melbourne as the next key investment location.
Contributions to the Community and Industry
Beyond real estate investment, Gibb is involved in social impact initiatives. He is a board member of Armed for Life, a social enterprise dedicated to teaching resilience and relationship-building skills to school children. The HMO Property Co provides financial support to this initiative, furthering its commitment to community development.
The company’s property management division has received multiple accolades, winning the Innovation Award at the REIWA Awards for Excellence for three consecutive years. The HMO Property Co aims to distinguish itself by offering a fully integrated service covering all aspects of property investment, from financing and site selection to construction and property management.
Industry Insights and Guidance
Gibb emphasizes that his company’s approach is considered unique because he, his wife, Johanna Gibb, and their business partner, Troy Felt, personally invest in the same type of properties they offer to clients. The company prioritizes not only financial returns but also the provision of safe, clean, and affordable housing.
For those entering the industry, Gibb advises a hands-on approach, thorough market research, and strategic partnerships. By continuously evolving and adapting to market demands, The HMO Property Co aims to remain a leader in the co-living investment space, driving both financial and social value.
Neil Gibb’s journey from the UK to Australia and his subsequent ventures into co-living real estate highlight a dedication to providing affordable, community-focused housing solutions. Through The HMO Property Co, he continues to innovate in the housing sector, offering sustainable living options and potentially profitable investment opportunities.
Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions.
Published by Stephanie M.
