Dual income property
With the recent rising cost of the property, the dual-income properties have become very popular for investors. A property is classified as dual-income when the owner generates two incomes by way of separate rental agreements.
Dual income property types
Common types of dual-income properties are granny flats, duplex units and dual occupancy properties.
– Granny flat – a second dwelling generally situated in the backyard of an existing property.
– Duplex: two residential properties share a common wall. If the properties have the same title, they can be owned and sold together. However, if they have a separate title, they can be sold separately.
– Dual-occupancy properties are similar to Duplex however they don’t need to be adjoining, they have individual titles. This means there’s only one set of rates for each property. In cases where there are no common driveways and areas, there are no body corporate fees to consider.
Whatever type it is, dual-income property investment can offer flexibility and opportunity to suit a range of investor needs.
Advantages and disadvantages of dual-income properties
o Flexibility: Investor can choose to live in one while lease out the other or even lease or sell one or both.
o Less cost: investors don’t have to subdivide the land to maximise the value. Unlike subdivided land, duplexes and granny flats don’t have additional holding fees, insurance costs and council rates.
o Council Legislation: Not all councils allow the building of dual-income properties thus investors need to check with their council’s rules and regulations
o Build Cost: Building dual properties usually costs much higher than a single unit thus investors need to aware and prepare to fund however this will be recouped quickly with dual incomes.