Benefits of dual occupancy homes for investors in Australia

Benefits of dual occupancy homes for investors in Australia

Posted on April 9, 2019 by Mirren Property Investment

Investors in Australia have embraced the concept of dual occupancy properties. Dual occupancy homes are cleverly designed, efficient homes which are great for a modern multi-generational family as well as separate tenancies.

Dual occupancy properties have a unique design where two dwellings – detached or attached – are constructed on the same block of land. There are several layout options for dual occupancy homes to choose from.

Common examples of a dual occupancy property include a duplex, a granny flat or dual-key property. Both ‘sections’ of the dual occupancy home can be rented out to two separate tenants in the same property, generating two streams of income. Or, they can also be used to subsidize the mortgage by living in the main section and renting out the rest.

Different types of dual occupancy properties

Duplex: Two properties on a common plot of land with shared common walls or may be adjoined. Used for renting out to two families.

Granny flats: About the size of a studio, located at the rear of an existing, larger property.

Dual occupancy: Like duplexes, they share common land but are not adjoined or share common walls.

Dual key property: This is a layout with one property, where a section within the property can be locked out and rented to a separate tenant. It potentially has additional living spaces such as living room and kitchen.

Dual occupancy homes give investors maximum potential returns from land values.

Advantages of a Dual Income Investment

  • Diversify your portfolio
  • Higher than average yield
  • Maximise one block of land
  • Multiply your income with 2 tenancies
  • Improve cash flow
  • Pay your mortgage sooner
  • Higher yield portfolio

Renters also enjoy several benefits of renting a dual occupancy home. Some of these are, more affordable rent as the landlord has one set of council rates to pay for both parties and no corporate fees.

Dual occupancy properties can really help investors working towards a cash flow positive investment strategy. Valuers usually consider the property as a whole, for example two dwellings – one with 3 bedrooms and 2 baths, another with 2 bedrooms and 1 bath – will be considered as just one property with 5 bedrooms and 3 baths. Given the two income streams, two different dwellings, the perceived value for the investor is quite high.

Most builders construct new dual occupancy properties as two different dwellings with separate water meters, power meters, hot water systems, etc. Comparatively, more resources go into this, which means higher equity to receive financing.

The benefits outrun the initial extra outlay over the years of ownership with increased cash flow. Reduced maintenance, compared to maintaining two separate properties is an added benefit that cannot be ignored.

Dual occupancy properties help investors in diversifying their property portfolio while gaining positive cash flow and quicker mortgage payoffs. Sounds interesting? Contact us to know more about this exciting opportunity.

“Dual income investments are key investment for sophisticated and smart investors as they increase the income and double the tax benefits.

~ Rene Marzinger, Mirren Investment Properties

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