Make the most of Your Assets - Dual Income Properties
Building TWO self-contained homes within a single building project is a great way to increase the yields from your investment property. Separate rental agreements mean that you can DOUBLE your rental income and build equity instantly while generating positive cash flow in high growth areas of New South Wales and Queensland.
Investing in a Dual Income Property
If you are seeking property investment advice for the first time, or even if you already have some experience in real estate investing, you will no doubt be aware that there are a range of investment strategies available to you, depending on your circumstances, access to funds, financial goals, etc. One of the most popular property investment strategies in Australia currently is to purchase a dual income property.
A dual income property will usually feature two self-contained homes within a single building structure, both of which produce rental income.
The most common form of dual-income property is a duplex, where two adjoining properties are situated on land with a single title, although the term is also sometimes used to refer to a residential building split into two townhouses or apartments.
You may also see the term being used in reference to dual occupancy properties (two properties on the same land that are not adjoining) and dual key properties (where two discrete properties share the same front door). In some cases, a home with a granny flat may also be referred to as a dual income property.
Investing in a dual-income property is an effective way of making the most of your assets, as it can potentially double your rental income and increase your overall rental yield.
• Dual Starting $550K- $750K in NSW & QLD
• Duplex $750K for Duplex in NSW and QLD
• Expected Equity uplift $100k + at completion
• Rental Returns – 5.5%- 7% per annum
• High Growth Areas
• Rental Vacancy Lower than 3%
• Positive Cash Flow
• Recommended Minimum Deposit or Current Equity required is $80K
* represents slight variations based on specific situations
The Benefits of Investing in Dual Income Property
1. Privacy
One of the biggest benefits of owning a dual occupancy home is that it is easy to rent because it offers more privacy than an apartment. It is like having two properties built into one. This means that you can find many individuals that are willing to rent this property and allow you to begin making a return on your investment right away. Since there is privacy, renting out a dual occupancy home is very easy.
2. Higher Returns
It is also important to consider the amount of return that you can get on your investment. With a dual occupancy home, you have the ability to collect rent from two separate dwelling areas. This provides you with potentially making almost double the rent by owning a dual occupancy home plus you to get a higher return on your investment. You will be able to repay the loan that you have on the purchase back in a quicker amount of time since you will essentially be recouping rent on two separate properties.
Positive Cash Flow
Positive cash flow is an important reason why purchasing a dual income property is one of the most popular investment strategies available. This term (you may also see it referred to as a positive income property or positively geared property) means that the rental income derived from your investment property is greater than the costs associated with owning and maintaining it.
In essence, this means that after the mortgage and interest repayments have been met, as well as holding costs such as maintenance, repairs, property taxes, etc., you end up with a cash profit each month. While this amount may not be huge, it does nevertheless mean that while you are buying an investment property, you are also getting an immediate return in the form of passive income, in addition to all the long-term benefits that accrue from real estate investing.
A positive income property is also one of the most effective ways of building prosperity through the property, as you are able to generate cash either to pay off the mortgage on the property more quickly or to obtain further lending in order to grow your property portfolio. It does, however, have to be borne in mind that any profit you make from your investment property is taxable.
3. Perfect Start
If you are looking to just get started in the real estate market, a dual occupancy home can be a great option. The risk is relatively low. You always have the worth in the value of the home and you will get a return based off of the rent that you obtain. Many people that buy dual occupancy homes choose to live in one side and rent the other side out. This allows you to have your mortgage payment paid for you. It is a great option if you are looking to get access to high value.
Want to Know More?
Dual Keys might be a great, cash-flow positive, adding to your portfolio, to help you grow your income and keep your portfolio in balance. If you need more information, call us today!
source: highincomeproperty, investinginproperty
