Smart property investors are always on the lookout for new as well as exciting possibilities in this extremely dynamic housing market in Australia. “Dual key” or “dual occupancy” construction types are gaining popularity with investors for good reason. This article will point out the benefits of these construction types so that we can help you make the most of your property portfolio. Read on to see how BBA can also help you source the right dual occupancy project through our builder partners to suit your needs.
What is a dual occupancy property?
Dual occupancy/dual key properties can take on many forms but the most popular is a custom built house design which features two attached dwellings positioned side by side that are divided by a common wall. Dual occupancy properties generate two separate income streams with the single dwelling - as they are set typically on one land title (depending on council approvals). With the right guidance, Builder Brokers Australia can connect you with the right builder who can build your dual occupancy home to help you realise these cash-flow benefits. Dual Occupancy property investments are probably one of the best investment opportunities in recent times and are poised to be a part of Australia’s evolving property market in future.
Invest in Dual Occupancy - The housing solutions that are paving the way for a more sustainable future
With the growing urbanisation of Australian cities, the real estate market is shifting towards medium-density housing to keep up with demand. Dual occupancy developments work to maximise the land value and incorporate all of the amenities of a traditional home but without the same maintenance, cleaning and energy costs. With the ability to fulfil the needs of most tenants, dual occupancy homes are deemed a great alternative to traditional homes as they can provide renters the opportunity to live in trendy inner-city areas or desirable suburbs and access neighbouring schools, business/ commercial districts, shopping and public transport.
Likewise, occupiers of these types of properties may prefer it to apartments where privacy is harder to come by when sharing your building with countless neighbours on all sides. Dual occupancy properties still have an adjoining or common wall and typically have a shared front entrance with private entry to the separate properties. Water and electricity metres, mailboxes, clotheslines etc are also separately installed for each dwelling. BBA offers many dual living/ occupancy designs which have two separate entries making it ideal for maintaining privacy. These properties require sufficient noise insulation and additional comfort capabilities such as extra ensuites, bathrooms, storage and living spaces to optimise the day-to-day liveability for users. These features make dual occupancy properties very attractive housing options for renters and we are seeing a demand among demographics such as young growing families, urban professionals, students, retirees looking to downsize and more. This means there will be an ever-growing need for these types of housing options.
Unlocking the full potential of your land value
In established or developed areas much of the traditional housing options on the market may not be suitable from an investment point of view (e.g. being negatively geared). At times, they may not be utilising the full land value and space, with few tenants inside (in the case of a mature family where kids may be moving out) and drawing high maintenance costs due to the age of the property. Investors looking for both capital growth and cash flow in growing suburbs or shires which are approved for dual occupancy homes may see it more fruitful for them to look towards investing in these types of housing options. Obviously if you already have a block that has large vacant space and want to unlock some equity in your land, undertaking a knock-down and rebuild is another option (contact us for more information). However, depending on the area, if you are purchasing a run-down property or vacant lot, it may be expensive, so you should do some preliminary research to ensure you consider whether it is a feasible commitment. BBA’s plethora of builder partners construct within all metro, suburban and most regional areas in each capital city so depending on your budget, BBA can help you narrow down the right project.
Dual occupancy/ dual key constructions can help reduce risk as well as increase serviceability from the bank's perspective as well. Should one tenant decide to leave or payment gets delayed, there is yet another tenant who is able to cover costs and contribute to the investor’s income. It is this kind of peace of mind that single-dwelling properties fail to offer. As mentioned earlier, dual living properties pave the way for a higher rental yield due to the double rental income and this can be an incredible aid for investors looking to build their property portfolio faster. If land is of sufficient size, it’s likely to increase in value faster and provide good capital growth too.
Reap additional benefits from dual occupancy investment properties
Dual Occupancy Investment properties are considered to be a great diversification strategy in today’s market. As mentioned above, dual occupancy homes promise positive cash flow for investors and are likewise becoming a very attractive rental option for residents. This flexible housing option also gives owners/investors the opportunity to live in one home and rent out the other, making it an idyllic solution if investors were looking to settle somewhere and generate some passive income simultaneously. This is also a great set-up for those needing to look after parents or relatives such as young teenagers, giving you the choice to bring them closer to home while giving them the privacy of living in their own space. There are also potential tax benefits to be explored through self-managed super funds when looking at building these types of properties (contact BBA for more information). BBA has vast knowledge as well as experience in the residential property market providing a professional property advisory service.
How BBA can help you achieve your project vision
Finding the right builder who can plan and execute the job as quickly as possible while ensuring the quality of your build is crucial. If you are thinking about investing in dual occupancy properties, BBA can help you get the most out of your home build by assessing your build requirements (such as budget, location, house requirements etc) and working to shortlist which project would be right for you (available to us via our builder partners). We would then connect you with our builder partners via an EOI who will finalise your design, contract and execute the construction of the property. For more information on our process, please see the link: https://builderbrokersaustralia.com.au/about-us/.
Final Note
For diversification of your property portfolio, positive cash flow, equity development and many more benefits, dual occupancy investment properties are a great starting point for any investor looking to enter the housing market in Australia. The beauty about dual key constructions is that you will have the opportunity to decide how you would like your property to work for you. .
Contact Builder Brokers Australia today if you are thinking to invest in dual occupancy properties so that we can help you build your lifestyle.