Benefits of owning a Dual Income Property
One Property = 2 x Incomes; or 5 Properties = 10 x Incomes
“You may have heard of Dual Income, Dual Key or Duplex homes and wondered what they are or the investment benefit of owning one (or more)?”
What is a Dual Key property? :
- Imagine looking at a house from the outside and it looks like one home with two parking garage doors
- From the front looks like any other house on the block
- Yet inside you would have a combination of a 3 bed home on one side and a 1 bed home with a common wall under the same roof line on the other side | or a 4 bed home on one side and a 1 bed home on the other
- This is referred to as a Dual Key, Auxiliary or a Dual Income property
- Two different addresses, post boxes, electricity and water meters etc
- Cannot be Strata Titled into two separate dwellings
- Some people refer to the second unit as a granny flat
- The other type of dwelling is a Duplex property
- This would equate to two separate homes with a common wall
- Duplex can be Strata Titled into two titles and you can hold both or sell separately one or sell both
- Meaning two different addresses, post boxes, water meters etc
Benefits of owning such a property include :
- Amortise the costs of building two dwellings onto one Lot, saves on land cost + some build costs
- Maximise the potential of one block of land
- A strong increase in Rental Yields for your investment which will in turn increase your Return on Investment and thus Cash Flow
- Meaning you will receive rent from Unit 1 + Rent from Unit 2 (equating to around 6% to 6.5% yield)
- Current market rents for a single dwelling will be around 4.5% to 5% yield
- Meaning you will receive rent from Unit 1 + Rent from Unit 2 (equating to around 6% to 6.5% yield)
- Reduced risk as one side might be vacant for a short period of time whilst you have tenants in other side
- There is a strong demand for auxiliary units / granny flats meaning low to no vacancy rates
- Rental Yields of 6% or 6.5% will *ensure your Investment is Cash Flow Positive giving you an ongoing income for the life of the investment
- Your return on Investment could be 45% to 50% (*dependent on your personal financial position & market fundamentals)
Locations which offer Dual Key dwellings include :
- South East Queensland
- New South Whales
- Very rarely in Victoria / Melbourne
For investors wanting to match the ‘right’ property to their Investment Strategy it makes sense to undertake your own due diligence or work with a professional group such as properT network who offer a wide range of Dual Key, Duplex, Auxiliary or Dual Income dwellings Australia wide
Ask us where?
Comments or questions are welcome.
