It’s no secret that investments which generate an income are highly attractive and we’ve seen an increase in duplexes, plus the introduction of dual income properties, or ‘dual keys’ as they are sometimes called.
While both can offer a strong investment solution, a common misconception is that they are one in the same. Interestingly, this is not the case and a dual income property is very different and offers investors, and owner occupiers alike, some compelling benefits.
A dual income property offers investors and owner occupiers alike compelling benefits.
Same same, but very different
Firstly, let’s look at the physical property type. A typical duplex is two individual properties constructed in a mirror fashion. For example, 4 bedrooms and 2 bathrooms in each property.
In contrast, Dual Income homes are two dwellings within the one property, usually a 4-bedroom one side and 2 bedroom on the other. The other major difference is the land title – a dual income is under one land title, with only one set of council rates to pay.
Small space, big impact
Dual income properties are architecturally designed to maximise space and can be built on smaller land size blocks. This delivers some significant cost advantages, such as a lower land price and reduced construction costs as duplexes are typically larger properties requiring more land and often double storey construction which also increases cost.
Upon completion, investors that have built a dual income - two different size properties and therefore enter in two different rental markets (one family and a couple for example). The occupancy make up is different. With a duplex you need two lots of families that want to live in the same location at the same time.
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Find properties in growth areas
Dual income properties are attractive for investors seeking strong returns, owner occupiers looking for a rental income, while also meeting the needs of multi-generational families who want flexible living solutions.
Like any house and land package, there are council approvals required and each council has different local planning and zones. There are areas in New South Wales and Queensland that support dual income properties and this is another win for investors with stock available in high growth regions.
Packages currently available in Wollongong, the Central Coast, Western and South Western Sydney and Newcastle in New South Wales. Our South East Queensland regions include: parts of the Sunshine Coast, the Gold Coast, Logan, Ipswich and Moreton Bay.
Naturally all areas have strong capital growth predicted and strong supporting rental yields. According to RESIDEX Wadalba (in the Central Coast) has 9% predicted growth annually over the next 5yrs.
One land title
Two individual land titles
Stamp duty applies to one block of land
Stamp duty applies to both blocks of land
One set of council rates
Two sets of council rates
A Dual Income property is not a duplex. It is on the same title of land just like a granny flat, only it is a purpose built integrated design to maximise the available space with only one set of council rates to pay.
Do the residents have privacy?
Yes. It is similar to living in a townhouse, villa or apartment. Each residence has its own private entry and outdoor living area, its own bin and letter box as well.