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)?”
To try to answer what they are :
- 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.
