Dual Key – 5 Reasons Why Investors Love Them
If you’re into real estate or investment, “Dual Key” is a term you may be familiar with, or you may have just started to see the term pop up more. Here’s the low down on dual key houses and why they are attracting the attention of savvy real estate investors.
A dual key house, also known as a dual occupancy, is a type of property that contains two separate homes under one roof.
Each home has its own entrance, living spaces, bedrooms, bathrooms and sometimes even a garage for each home.
What are the benefits of dual key house and why are real estate investors attracted to them?
Two Rental Incomes and One Set of Fees:
One of the main attractions for investors is the ability to generate multiple streams of rental income from a single property. They can rent out both units individually, increasing the potential rental yield compared to a traditional single-unit property. This can provide a more stable and consistent cash flow. The added to a dual key house is that as it’s a single property on one title. This means one set of council rates and one set of body corp fees (if applicable). This is especially appealing to those using their self managed superfund to purchase a property.
Flexible Living – live in one, rent one out, give family privacy or create a home office:
Dual key properties offer flexibility in terms of usage. The investor can choose to live in one unit and rent out the other, or rent out both units for maximum rental income. The separate entrances and self-contained nature of the units allow for independent living arrangements, making them suitable for extended families, multigenerational households, or even as a home with a separate office space.
Diversification – manage your financial risk:
Investing in a dual key property provides diversification within a single property. By having two separate units, investors can mitigate risk by having multiple income streams. If one unit is vacant or experiencing rental difficulties, the other unit can still generate income, providing some stability to the investor.
Potential for capital growth:
Dual key houses are often located in desirable areas with high demand. New estates often have the option of building a dual key house on a block that’s larger that 400m2. The potential for capital growth over time is a key factor that attracts investors. As the property value increases, investors can benefit from both rental income and potential equity growth.
Tax Benefits:
We’ve mentioned that purchasing dual key homes through your Self Managed Super Fund may appeal to investors, and that there are financial savings when it comes to council rates and body corporate fees. There may be extra tax benefits, especially for dual key house and land packages. Investors should consult with tax professionals or financial advisors to understand their specific tax implications and benefits.
Browse our Dual Key House and Land packages, or contact us today to see what we have to suit you.
