Invest
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Invest
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Promoted by Metricon
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
When you’re planning on investing in the property market, one of the biggest challenges you’re likely to face is the type of property to invest in. Which property type is going to give you the best yields now, and which one is more likely to bring in $$ in the long term? Whether you’re building a new investment property from scratch, or buying an existing property, there are a variety of types to choose from, but one of the most prominent in the market today is dual occupancy.
Dual occupancy properties have enough living space for two residences. They will be either attached to each other, such as a duplex where they are separated by a wall, or a two-level home with separate entries to both levels; or they are detached, such as a granny flat.
Advantages of Dual Occupancy
One of the biggest advantages of dual occupancy for investors is that they generate a higher return – if you’re not planning on living there, you can essentially have two separate tenants, both paying rent. That rent can help pay your mortgage, rates and then some. The better condition of the property, the greater the income.
If you want to live on the property yourself, you can rent out the other half – which means you have help paying off any bills. For example, if you’ve found yourself living on a property that has too much lawn, considering building a granny flat that you can then rent out is a great option. It embraces the valuable space that would otherwise go unused and allows you to generate an income for yourself as well.
Mature Age vs First Home Owner
If you are a mature age homeowner, it makes the property much easier to maintain as you can share the load. It allows you to downsize your own space, while at the same time encouraging a steady income for yourself. It’s also great for adding security to your lifestyle – if you live alone, having someone else (trusted) sharing the property will help you to feel safer at home.
If you’re starting out in the property market, dual living will help you pay off your debt sooner. You can either convert a home into dual living, add a granny flat to a large block of land, or perhaps knockdown and rebuild the home that’s existing on a quality land parcel. Whether you rent out part of the property, or both residences, it’s a bonus for your financial security.
Making The Right Choice
Not sure where to go from here? Start by getting the right advice. Choose a building company that knows what they’re doing and a team that are willing to sit down with you to discuss all your options and concerns. Be flexible in your design – you might want to build a duplex, but the block you have might be better suited to a two level, dual-key access property.
Talk to your builder and local council to find out the limitations and possibilities. Finally, you want a builder that is experienced and produces high quality projects. If you do all of the above, the outcome will be favourable.
While we've tried to be as helpful as possible, this article should not be taken as professional financial advice. It contains general information only, and you should seek out independent, professional advice before making any financial decisions.
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