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Dual Key Property

Two Incomes, One Property

What are dual key homes?

A dual key property is effectively one block of land that has two separate dwellings. The most common form of dual key property is a single structure with a house on one side and a unit on the other. Essentially, this is the modern-day version of a granny flat.

Dual occupancy homes are like duplexes, in that they consist of two dwellings on one plot of land. However, unlike a duplex, these dwellings don’t necessarily need to be adjoining. Dual key properties (sometimes referred to as shared living) also have single title ownership. This means that the property owner will only be required to pay one set of council rates and there are no body corporate fees to deal with.

Dual occupancy properties have become a popular investment strategy in recent years thanks to their potential for dual income streams. Alternatively, the property owner may choose to live in one residence while renting out the other.

Dual Income Properties

Increased property prices across the country have forced many everyday Australians out of the housing market, causing a surge in demand for alternative living arrangements. Dual occupancy homes provide an innovative solution for investors to meet these market demands.

A property is classified as dual income when the owner generates two incomes by way of separate rental agreements. A dual property is an ideal way to generate a dual income stream, as it includes two entirely separate homes within one property. This configuration allows for simultaneous occupancy by multiple tenants.

Why Are Dual Occupancy Homes A Good Investment?

Demand for Dual Occupancy

Ideal Starter Investment

Potential for Owner-Occupancy

Demand for Dual Occupancy

Ideal Starter Investment

Potential for Owner-Occupancy

Dual Occupancy: Two Properties for the Price of One

Purchasing dual key homes can be a sound investment strategy with numerous benefits. They offer first-time investors a more affordable entry point to the property market since a dual property can either deliver a dual income stream or else be used as a primary residence while still generating a rental income. Essentially, investing in a dual house is very much like buying two properties for the price of one.

Keep in mind that this information is intended simply as a guide to help you with your research. The type of property you invest in will ultimately depend on your preferred investment strategy, risk tolerance and specific market conditions.

Positive Income Properties Can Find You A Dual Key Investment

Here at Positive Income Properties, we source the right property deal based on what will work best for our client. We are involved every step of the way, from sourcing to financing, and from settlement to leasing the property. We can secure tenancy from the onset of settlement, ensuring a streamlined process with no unnecessary delays.

Whether you are a seasoned property investor, a beginner or simply want to buy your first home, Positive Income Properties is here to help.

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What Are The Pros And Cons Of A Dual Key Property?

As with any kind of property investment, purchasing a dual key home will come with certain advantages and disadvantages. To maximise the success of your investment, it’s important to evaluate the various pros and cons before committing to a purchase.

Pros

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Flexibility

Owners can choose to live in one dwelling while renting out the other, providing flexibility in terms of occupancy arrangements. Unlike a duplex (where both dwellings are more or less the same size), a dual key investor can decide whether they want to live in the larger or smaller dwelling, depending on what best suits their current circumstances.

Tenant Diversification:

With two dwellings on a dual key property, investors can diversify their tenant pool, reducing the risks associated with relying on a single tenant for rental income. Having multiple tenants increases occupancy stability and minimises the impact of vacancies, ensuring a more consistent flow of rental revenue over time.

Increased Property Value:

Dual key properties often command higher resale values compared to single-unit properties. This is due to their potential for dual income streams and versatility in accommodating different tenant and owner needs.

Cons

Initial Investment

Building a dual key property may require a higher initial investment (compared to single-unit properties) because of their unique design and construction requirements.

Maintenance Costs:

Since owners are responsible for the upkeep of two separate dwellings, they may have to manage higher ongoing maintenance and repair costs (compared to a property with only one residence).

Regulatory Constraints

Depending on local zoning regulations and building codes, there may be limitations on how dual key properties can be used. For example, there could be restrictions on using the property for short-stay rentals.

Tenant Management

Multiple tenants increase the potential for conflicts or issues between occupants. As a result, managing a dual key property can be more complex and time-consuming compared to a single-unit property.

How To Invest in A Dual Key Apartment or House

Are you thinking about entering the real estate market as a property investor? If so, why not start with the purchase of a dual occupancy home?

Every homebuyer or property investor is different. This means that no two investors’ needs will be exactly the same when it comes to purchasing a property. For tailored advice from property investment experts, contact the team at Positive Income Properties.

Dual Key Vs Duplex Properties: What’s the Difference?

A dual key residence is a single property that has been designed to house two separate families. Dual homes typically have a larger and a smaller residence, which may or may not be attached. Dual properties will commonly include a larger residence and a granny flat or unit (either attached or detached). Unlike a duplex, all of the dwellings on a dual occupancy property will be on one title.

A duplex is two residences on one block, and they typically share a common structure (built either side by side with a common wall or as a stacked upstairs and downstairs dwelling).

While similar, duplexes and dual properties have their own unique benefits and challenges. For example, it may be slightly cheaper and easier to build a dual property (due to simplified building legislation), but dual dwellings cannot be sold separately (since they occupy the same property title).

Find Out More About Dual Key Investments

To find out more about investing in a dual key property in NSW or QLD, or to talk to the expert team at Positive Income Properties, fill out the form below. In the meantime, you can also sign up for our weekly inventory and property investing insights.

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Dual Key Property Investment Strategies

There are a range of different investment strategies that can be used when purchasing a dual asset. These include:

Buy-and-Hold

Renovate-and-Sell

Short-Term Rentals

Buy-and-Hold

Renovate-and-Sell

Short-Term Rentals

These investment strategies offer unique opportunities for investors looking to maximise the potential of their dual properties. However, as with any major financial purchase, you should always do a careful assessment before committing to a specific investment strategy.

It’s also a good idea to consult with experienced property investment advisors who can provide valuable insights and guidance.

Managing Dual Key Properties

Effective management strategies are essential to ensuring your property purchase is an investment success. These might include:

Tenant Selection

Take time to screen potential tenants thoroughly, since a reliable tenant is crucial to the long-term success of your investment. This process should include a review of their rental history, employment status and provided references.

Maintenance

Even a brand-new property will require routine maintenance to keep it in good condition. It’s a great idea to implement a preventative maintenance schedule and address any issues ASAP.

Rental Management

It’s often worth employing a professional property manager to handle lease agreements, rent collection and communication with tenants. This may be the easiest way to ensure efficient and hassle-free management of your investment.

How Could You Benefit from Owning a Dual Key Property?

Just how beneficial can a dual occupancy property be as part of a well-planned investment strategy? To illustrate, let’s consider a hypothetical case study.

Background

The Taylor family were looking for an investment opportunity that would provide passive income and the potential for long-term wealth accumulation. After doing thorough research, they decided to invest in a dual key property.

Investment Strategy

The Taylors opted for a buy-and-hold investment strategy. They consulted with investment property specialists to find a suitable property in a high-demand rental market popular with growing families and young professionals.

They chose a property close to schools and public transport, with a 3-bedroom home on one side and a one-bedroom dual key apartment on the other. This gave them greater flexibility when it came to tenant selection and rental return.

Property Management

The Taylors partnered with a reputable property manager who handled all of the day-to-day management tasks associated with owning a rental property. This allowed the Taylors to focus on their careers and their growing family, all while enjoying passive rental income.

Outcome

The Taylors not only benefited from passive rental income, but they also saw the value of their investment grow over time. With the resulting equity, they were eventually able to expand their investment portfolio to fund a comfortable retirement.

While this scenario is only hypothetical, it illustrates just how effective a well-thought-out investment in a dual occupancy property can be.

Dual Key Property Investment with Positive Income Properties

Are you an experienced investor looking to diversify your portfolio and maximise returns? Are you a first-time investor seeking a low-risk purchase that can provide passive income? If so, then a dual property may be the ideal choice.

With the potential for multiple income streams, flexibility in occupancy arrangements and increased property value, investing in dual key properties could prove to be the strategic move that sets you on the path towards long-term financial growth.

At Positive Income Properties, we specialise in sourcing the right investment opportunities tailored to our clients’ needs and goals. Whether you’re a seasoned investor or just starting, our team is here to provide personalised advice and guide you through every step of the investment process.

Don’t miss out on the potential benefits of dual key property investment! Contact Positive Income Properties today to explore the opportunities available and take the next steps towards achieving your financial goals.