What if you are not interested in Mining Towns or NRAS..
Have you thought about two incomes from one property to get the extra cash flow you need?
Duplexes have long been the favoured investment for savvy investors chasing a higher returns than stand-alone houses give. There are many advantages of a duplex, two incomes from one property is probably the most notable.
Duplexes are generally more costly per square meter to build, than a comparable house. This is due a number of things like increased council costs and strata titling among other things.
However, not everyone wants the expense of a duplex to get two incomes from one investment. Now you don’t have to.
Introducing Dual Key Property
Dual Key properties are cheaper to build than a duplex and get similar cash returns, meaning your percentage return is higher!
A dual key property is like a duplex in that it has two incomes, but instead of two exactly mirrored units, it is usually a house on one side with a unit on the other. Think of it as the modern day version of a granny flat.
The configuration is usually 3 or 4 bedrooms one side, 1 or 2 bedrooms the other side.
They are separated by a fire wall like a duplex but cannot be strata titled like a duplex can.
This means that you have No Body Corp Fees and only one set of local council rates and charges as councils view the construction to be a normal house.
What about Exit Strategy?
For an investment property to meet our criteria it must have at least 3 different potential buyers, so you can exit the property when you want or need to.
It is not a good idea to ever buy a property that ONLY appeals to investors as they make up 30% – 40% of any one market.
Dual Key’s meet our criteria for exit strategy!
- Investors. A high yield that appeals to you now, will appeal to another investor when it comes time to sell.
- First / Second home buyers want help to pay mortgage. First home owners move into unit-side, rent out house-side. Second home buyers / family move into house-side, rent out unit-side.
- Traditional ‘granny’ flat style. Family in house side, granny/grandpa in unit side.
Dual Keys might be a great, cash-flow positive, addition to your portfolio, to help you grow your income and keep your portfolio in balance.
To find out more about Dual Keys Click Here.
For more information on this article or anything property related, contact us via 1300 66 77 89 or via email.
Scott has been instrumental in bridging the gap between financial planning and traditional real estate transactions through his property advice model. By carefully considering his clients’ goals and planning for market changes via demographics and trends, Scott designs a future proof outcome not only specific to the client’s needs but dynamic in its execution with performance indicators and exit strategies built in.