Deciding on the right investment for your future can have a major impact on your financial goals.
One proven method is to invest in the housing market, but how you do decide what type of property is right for you – now, and into the future?
Investors across Australia are embracing dual occupancy properties – regardless of if they are building from scratch or buying a ready-built property.
Dual occupancy is where there are two dwellings on the same site.
These can be either attached, or detached and there are three main types. A granny flat is generally the size of a studio and might have one or two bedrooms and living area.
A duplex is two properties that share walls – units are an ideal example.
Dual key is where a section of the property can be rented to a tenant, such as a two-level home where the lower level has its own entry.
So, what is it about dual occupancy homes that are grabbing the attention of investors? And should you join the revolution?
The benefits of dual occupancy
As an investor, you want to make sure you’re getting a good return on investment on any property you purchase.
Dual occupancy properties generally bring a higher return as you can have two separate tenants, paying separate rent.
If the property is in good condition, you can charge a higher price for either occupancy.
Another option is if you want to live in one section, and rent out the other to help pay the mortgage.
Dual occupancy properties offer investors plenty of flexibility. They can choose to lease both properties, live in one and rent out the other, and even sell one of the properties and keep the other.
All options offer high profits. Because you essentially have two properties that you can lease out, the risk of investment is also low.
It’s also a bonus that you don’t need to subdivide your land if you want to make the most of the property, which means there are no holding fees or excess council taxes, and lower insurance rates.
Building dual occupancy
If you have a large block of land you’re planning on building on, by developing dual occupancy living you’re opening the gates for a range of exciting options into the future.
Although from the outset, you’ll be paying more for the build – the returns are well worth it.
You’ll not only receive a higher-than-average yield with more than one income, but you can pay the mortgage sooner, increase your portfolio and improve your general cash flow.
You could use the second dwelling as an Airbnb, ensure you have plenty of space if your parents need assistance in future (or if you do), and there’s even a number of tax deductions you can claim.
Dual occupancy doesn’t only mean you have two homes on a block either.
You can have three, four or even more, so it’s well worth talking to the experts to learn more about the options available.
If you’re seeking a great way to invest in your future, dual occupancy properties provide a positive outcome.
While we’ve tried to be as helpful as possible, this page should not be taken as professional financial advice. It contains general information only, and you should seek independent, professional advice before making any financial decisions.