“Cash Flow Positive Property Investment Strategy”
What is a Dual Key Occupancy Property?
A dual key occupancy property is a great way to achieve a cash flow positive position, without having the risk of investing in regional markets like mining towns. Investors today are seeking ways to invest in property that can build a passive income and not effect their lifestyle. A dual key occupancy property is for example, a 5 bedroom, 3 bathroom home constructed on one title. This property can be divided by a common wall to create two living areas that can be rented out to separate tenancies. This allows investors to supercharge rental returns and become cash flow positive from day one.
Advantages of a Dual Key Occupancy Property
- Cash flow positive from day one
- Additional depreciation and tax deductions comparative to a standard new home
- One land title, so only one lot of land & water rates
- Dual rental income; if one tenancy becomes vacant the other tenancy still provides rental income to support the mortgage
- Better servicing with the banks as they will take into account about 80% of the rent as income, great for lower income earners to build a sizable property portfolio
- Combined dual rental incomes can range from $30,000- $40,000pa, can be cash flow positive $100 – $150 a week after tax depending on specific property and personal financial circumstances
- Can be built in high growth locations
- Affordable rent for tenants
Disadvantages of a Dual Key Occupancy Property
- The dwelling cant be sub-divided and sold off separately, its not a duplex
- Can’t construct them in all areas, council approval is required
- More expensive to build than a standard home
- Not all builders build them
-
Need to have a block size generally over 450m2, depending on local council requirements
Is this strategy suitable for you?
Investing in property is never a one size fits all mentality, you should always seek professional help to ensure your property strategy is aligned with your financial goals. At Curtis Property Group we assist all our clients to develop a personal wealth strategy before purchasing any property.
If you would like to find out if this particular strategy is suited to your circumstances, give our office a call and book your complimentary strategy meeting today.
CEO Wade Curtis has posted a video on “Dual Key Occupancy Property” on our facebook page, get across and check it out!
