Frequently Asked Questions about Dual Occupancy homes
What does Dual Occupancy mean?
There are many interpretations of the term Dual Occupancy. We simply refer to the situation where there is more than one home on a single block of land. The most commonly used term is a Duplex.
What is a duplex?
Two homes both fronting the same street with a shared adjoinging wall. This type of building is also called a “pair” or “party wall development”, or if you are from a British background, you will know them as a “semi-detached”.
With so many different names, it can get a bit confusing. We just know they make a great investment for anyone wanting to get into property.
How dual occupancy homes produce positive cash flow?
The simplest way to look at this is if the rental return you receive is greater than the interest rate on your loan. For example if the rent comes in at 6.75% return and you are required to pay 5% on your loan you are going to be in front. But it gets even better, you are able to claim tax deductions on your expenses, like interest, property management fees and depreciation. This will make the situation even better.
You can use our Investment Calculators to work out your return.
How does the purchase contract work?
Typically there are two contracts to purchase a house and land package. One is for the land and the second contract is with the builder for the dual dwelling. This is good news as it means that you only have to pay stamp duty on the Land contract.
Saving you heaps of money.
Where should I get my property investment advice from?
I have found the Dual Dwelling package that I really like, what is the next step?
The first step is the completion of an expression of interest form and a small deposit (usually $1,000) to secure the package and take it off the market.
Give us a call on 1300 364018 to get the ball rolling NOW!
What is the best area to buy in?
In 2015 we are very excited about the South East Queensland corner. All of the fundamentals are right and the market is primed for a strong uptick. Of course it is important to look at your goals and objectives before deciding where to invest.
For an interesting article on the SEQ market prospects go here.
Can we get a Dual Occupancy home anywhere?
The short answer is “No”. State and local Council regulations, Planning overlays, existing vegetation, slope of the land or title restrictions such as single dwelling covenants can make the development of some land not possible.
In the South East corner of Queensland the Ipswich, Moreton and Brisbane areas are the ones that allow these types of properties at present. Though different rules apply in each location.
How much money do I need to start?
You may not need much more that a couple of $1,000, if you have equity in your home. This spare equity can be used to allow you to borrow the full amount of the purchase price. Then if your investment is cashflow positive you start making money straight away.
If you are just starting out then you will need some sort of a deposit. We would suggest around $25,000 to $35,000 as a minimum deposit. Call us on 1300 364018 to discuss other ways that you can get your deposit together.
Does property investing really make people rich?
There is a reason why so many Australians invest in property, despite the sometimes poor real estate market: it earns them money. Also the largest group in the BRW rich list is made up of people who made their wealth from property investment.
Now you may not want to be on the rich list, but you can certainly be on the financially secure list. Just get started building your property portfolio.