Does the idea of receiving two income streams from one single investment property seem a little far fetch? Well, it is a very real thing that E-Fishient Property Solutions Managing Director, Ryan Fisher, says smart investors are starting to do more and more frequently.
You see it comes down to the type of investment property people are purchasing and as anyone with investing nuance knows, there are many different types of investment properties to consider. However, the one that can offer two income streams from the one structure are dual occupancy properties. They are becoming more attractive to tenants and more popular with investors and there are no questions why.
Dual Occupancy properties are when two dwellings share one common wall, effectively placing two separate rental agreements under the one roof. From the outside, they look like any standard four or five-bedroom home, but the floor plan actually encompasses two individual dwellings and the back yard of the house is separated by a fence. The two dwellings are established as separate during the build stage and so are metered separately so utilities can be managed separately – ideal for tenants.
Ryan shared that one advantage of dual occupancy properties is that they are suitable for all types of property owners; “For investors, they are a financial accelerator, for first home buyers, having tenants in the second dwelling can subsidise mortgage costs and for owner-occupiers they offer great flexibility for a growing or changing family by providing a young-adult retreat or a granny flat style option.”
Financially, they are incredibly rewarding. Currently the median rental price of four or more bedroom properties in Pimpama, one of South East Queensland’s fastest growing suburb is $430 per week. In this same suburb, two bedroom dwellings are rented out for a median of $350 per week and three bedroom properties for $390. This means that depending on your property size, you could be generating more than $700 per week in rental income where you would ordinarily be generating $430.
This means that you have a healthier cash flow, are creating more equity in your property and reducing your mortgage term quite rapidly. This coupled with the many advantages of building a property from the start including tax advantages and depreciation mean that going down the path of purchasing a dual occupancy property could be your best decision yet.
If you would like to learn more about dual occupancy properties or see what properties we have available for sale now, please get in touch with us by clicking here.