Dual Key Houses

Investing in a Dual Key Investment Property

Investing in a Dual Key Investment property has many pros and cons. This strategy is an excellent way to generate two rental income streams from one property. However, it comes with a higher deposit requirement and requires a more expensive investment property. While high-income properties are a huge plus, you can often convert them to a single home with two separate living areas if the need arises.

Dual-key investment property is a yield-based investment strategy

Dual-key apartments are another excellent option for those seeking a yield-based investment strategy. They tend to increase in value slower than other investment properties but generally bring in high rental yields. Renters will pay around $800 to $1200 per week for a typical dual-key property. The gross yield of these properties is between 5.5% and 7.5%. Dual Key properties are generally located in a city’s middle to outer suburbs.

While you may be able to earn a higher yield by purchasing two units or townhouses, the costs of purchase and ongoing monthly fees are significantly higher. While the dual-key houses can provide a higher yield, it is not suited to the needs of all investors. If you’re starting and want to ensure that yield is the main focus, a lower-cost investment property is a good option.

Dual Key = Double Income

It offers double rental income

The concept of a Dual Key Investment property is simple: a one-unit dwelling with a second, separate unit on the same title, producing double rental income. A dual-key property is a great way to double income while only paying one mortgage, council rates, and without body corporate fees. A dual-key property also allows you to live in one half of the property and rent out the other. These benefits provide investors with double-digit rental income while reducing their mortgage payments.

The benefits of a dual-income property are many. It increases your overall rental yield, making it the perfect investment for investors looking to boost their cash flow. Dual-income properties are easy to rent and offer more privacy than apartment units. You can easily rent both units, ensuring you receive a double-digit monthly rental income. Dual-key investment properties also tend to be in desirable locations and are therefore attractive to a broader audience.

It is easy to convert back to a single home

Investing in a dual key property is an excellent option for those looking to expand their property portfolio. These properties are generally more affordable than single homes and usually only have one set of council fees and water rates. They also typically do not have large outdoor areas or large lawns to maintain, making them more affordable than single homes. Purchasing a dual key investment property may be a good option if you have enough cash or want to start a family. However, you must make sure that the location is ideal for the target demographic you’re targeting.

While it is easy to convert back to a single-family home after a while, mortgage lenders may require notification if you plan to convert a house to a dual-key property. For example, a mortgage lender may not like having more than one resident but will likely view a property’s value as higher if multiple residents live there. If you have an SMSF then an SMSF investment property may be the best investment option.

It is an excellent strategy for renovating-focused investors

If you’re a renovating-focused investor, you’ll find that a Dual Key Investment property is a great strategy. By using this strategy, you can take your initial cash out of the property and use it to put a down payment on your next rental property. Since you only need a down payment once, you can use the same cash to invest in more rental properties. Moreover, adding properties to your portfolio will increase your monthly income, which will snowball your investments into more significant deals.