In our last blog, we outlined the benefits of buying a positive cash flow property and how our research helps you get the best property for your individual needs. We promised that we would tell you more about Dual Income Properties so here it is. We love affordability and positive cash flow in any investment property. Since you can find both of these in dual income properties, we love these properties a lot. You may ask what dual income properties are? Simply put, one property, two incomes. In most cases, people buy a plot of land and then construct either an attached (two dwellings sharing one wall) or detached (granny flat) accommodation. There are other ways of doing it, for example, a duplex apartment but the most preferred way is house and land. How is a dual affordable? There are significant tax savings; if you build two dwellings on two plots of land, you pay stamp duty twice. With a dual income property you are effectively building two dwellings but there is only one land title. Hence, you pay stamp duty only once. You also pay one set of council fees as you have a single title. We love affordability; duals can be very affordable. How about a dual income house and land for $484,000 that generates $580 per week in rent, less than 30 mins to the CBD. This has to be worth asking where and how I get one of these.
If you are an investor, it means one mortgage and two sources of income via two separate rental contracts. The extra income that comes your way as additional rent may turn an otherwise negatively geared property into a positive cash flow property. In areas with high rental demand, you can slightly reduce the rent making it more attractive to prospective tenants and still make more money than a single standing home. If one of the houses is not rented you still get income. Additional tax benefits can be gained by claiming depreciation on fixtures and fittings for two dwellings since the property is newly built. All these make a big difference when it comes to the overall cash flow of the property. To make life easier you can have individual gas, electricity and internet connections. Hence there would be no squabbles between the two tenants. The local council tends to be happier because a lot more people are being accommodated in the same amount of land.
It also goes a long way in improving your borrowing capacity, as you now have an additional source of income. To add to the equity, you accumulate over you can customise the living space thus adding value. Squeezing in an extra bedroom, build an alfresco or pool when no one in the area has one improves your chances get tenants.
If you are buying a property to live in and tell me “Naa mate, this one is not for me” let me tell you how it is an attractive offer even for your. Other than the savings on stamp duty, the rent that you receive from one side subsidises the expense of living on the other side. The mortgage gets paid back faster. Want your parents living close to you? One side of the property can be occupied by you the second would be your parent's abode without them losing their independence. Still not convinced of the options you have. If you are looking for resale. You may be able to subdivide the property; both properties can now have two different titles. Need some money? You could sell one of the properties and yet have the other half to live in or get rent from. If your family grows in size and you need more living space; you can knock out a wall and get a bigger house. The versatility that you would have with this property is incredible.
It is hard to go wrong with a dual income property as an investor or a resident. We feel great when a client does well. You know we do not give up on you quickly. We have recently launched Silverhall Property Management. Silverhall Property Management or Silverhall PM as we call it. For now, it is present in specific geographic regions. We look after the daily rigours of being a landlord, so you do not have to. The people who help you research and build the property, are the ones taking care of it, and we take care of it as if it were our own. Want to know more, call us on 1300 66 77 24, or email This email address is being protected from spambots. You need JavaScript enabled to view it.. Set up an obligation free meeting. We will assess your situation and recommend the best investment for you.