2 For 1 – Dual Key Investment Properties
In Europe and the USA they’ve been doing it for decades, and now dual-key properties are starting to gain traction in Australia among owner occupiers and investors. Why? Because they can deliver affordability, convenience and an additional source of income.
So, what exactly is a dual-key property? It’s a property that has a single title but contains two separate homes. It may have a common entrance but each home will usually have its own living room, kitchen, bathroom and bedrooms. There can be variations to this configuration, but basically, you’re looking at 2 homes under 1 roof.
For investors, a dual-key property has a major benefit. The two homes can be leased out separately, delivering two income streams without having to incur the considerable cost of buying a second property. Buying one property instead of two should also mean a much lower loan.
What’s more, the property should only be liable for one strata levy, not two, as would be the case with two duplex properties. Maintenance costs should be lower than for two properties. And if one of the homes becomes vacant, the second will continue to deliver an income.
But it’s not just about investors. Dual-key properties can offer an ideal solution for people who want to have ageing parents or other relatives close by, without sacrificing their privacy. And first home buyers can make it a lot easier to pay off their loans by living in one of the homes and letting out the other. Importantly, it shouldn’t be difficult to convert into a single dwelling, if required.
It is not surprising that dual-key properties have started to become popular at a time when there is a drive for affordable, higher density accommodation in Perth. Dual-key housing is sure to play a role in making housing in Perth more affordable, while also helping to counter urban sprawl.
As always though, do your research to find out if these types of investments suit your particular circumstances. Contact Nicheliving Home Loans today to find out about our dual key property investment opportunities.