Dual occupancy properties: reasons to invest
Financial goals can be impacted greatly by the choice of investments you make for the future.
Investing in the housing market is a proven method, but how do you determine which type of property is right for you – now and in the future?
Building from scratch or buying a ready-built property, investors across Australia are embracing dual occupancy properties.
In dual occupancy, there are two dwellings on the same property.
These can be attached or detached, and there are three main types. Most granny flats are the size of a studio and have one or two bedrooms.
Duplexes consist of two properties that share walls – units are a good example of this.
An example of a dual key property would be a two-level home with an entry on the lower level.
Why are dual occupancy homes attracting investors’ attention? Would it be a good idea for you to join the revolution?
Dual occupancy has many benefits
When investing in property, you want to make sure you’re getting a good return on your money.
In general, dual occupancy properties generate a higher return since you can have two separate tenants paying separate rents.
You can charge a higher price for either occupancy if the property is in good condition.
To help pay the mortgage, you can live in one section and rent out the other.
Investors have plenty of flexibility with dual occupancy properties. Renting both properties, living in one and renting out the other, or selling one and keeping the other are all options.
The profits from all options are high. There is also a low investment risk since you have two properties that you can lease out.
If you want to make the most out of your land, you don’t need to subdivide it, which means there are no holding fees or excess council taxes, and insurance rates are lower.
Double occupancy in a building
By developing dual occupancy living on a large block of land, you’re opening the door to a range of exciting future options.
Despite the fact that the build will cost more from the start, the returns are well worth it.
As a result of having more than one income, you will receive a higher-than-average yield, be able to pay off your mortgage faster, increase your portfolio, and improve your cash flow in general.
A second dwelling could be used as an Airbnb, you could have plenty of space if your parents need assistance in the future (or if you do), and you could even take advantage of some tax deductions.
It is not just about having two houses on the same block that is considered dual occupancy.
To learn more about your options, speak with the experts about three, four, or even more.
Dual occupancy properties are a great way to invest in your future.
Although we’ve attempted to be as helpful as possible, this page should not be construed as professional financial advice. Before making any financial decisions, you should seek independent, professional advice.