When presented with the opportunity to buy dual occupancy homes, the first question you might ask yourself is “why should I?” There is no straightforward answer, to be honest. While a duplex can potentially serve as a great investment for either a landlord or a homeowner, you should first carefully consider several things before you purchase any of these multi-family properties.
1. They offer high yield and high growth for the investor. However, these come with greater risks than just buying the individual house and land packages or the pre-designed homes Melbourne real estate agents offer.
2. They are an excellent option for someone who wants to invest strategically but doesn’t have a lot of time at their disposal.
3. They are positively geared which means that dual occupancy homes have the potential to create equity in a calculated manner. If well-purchased, they can make for positive cash flows from the very beginning.
4. They would be a great choice for retirees since they create the ability to fast-track wealth. Check Latitude 37 for more details.
5. They are allowed in only certain councils. Both Queensland and New South Wales are more favorable towards these types of housing units due to the population growth.
1. You will get what you pay for so you should not purchase dual occupancy homes according to just the price tag. As tempting below-market rates may be, there are reasons why they are so low.
2. You need to have the capacity to cover the 20 percent deposit in equity before you can buy. While this can be achieved with a lower deposit, you could be facing greater financial risks in the future.
3. You are given the option to lease them out and earn on-going high-interest returns of your investment. Renting out both units would mean two income revenues to pick up, after all.
4. You need to be able to service a big loan from the bank or any other reliable financial institution in your area so you can pay off those townhouse builders Melbourne construction firms have available.
5. You might be able to get a no strata title structure which would reduce the holding costs and add more to the rental returns. Additionally, it would provide you greater control over the expenses for both properties.
6. You have the option to have the properties designed as one big house to attract more tenants. This, in turn, can lead to better street value, higher curb side appeal, and greater capital growth.
For many, a duplex is one of the smartest ways you can invest, especially with the real estate market in Australia today. Not only can it offer a higher rental yield per square metre but it can also generate equity more quickly. It maximizes the potential of the land without requiring a subdivision for two properties to be built.
Getting help and advice from experts will ensure that you don’t have to go through the process on your own. Avoid mistakes and save time by getting in touch with only the best dual occupancy builders Melbourne construction firms have available today.
Of course, investing in duplexes should not be a one-size-fits-all option for your portfolio. Hopefully, the list above has given you ideas on what you should prepare before signing a contract. For more info, visit http://www.l37.com.au/