The old blueprint for financial freedom used to be to “work hard and save your money”. Today, thanks to retirement costs, the rising costs of daily living, rising housing prices, it has become  less of a luxury and more of a necessity to start planning ahead of time and building your investment portfolio.

With property being one of the lower risk strategies, why are more and more investors channelling their capital into South East Queensland dual occupancy investments instead of a just building a standard home?

The Benefits of Building

Minimising stamp duty is one way to reduce your initial investment, and when you build you one serious perk is that you are only required to pay stamp duty on the price of the land, not the value of the building contract. This could mean savings of ~$10,000 depending on the property price.

Pay Council Rates Once, Not Twice

For those considering building a duplex for the purpose of generating two rental income streams instead of one, there may be a more cost-effective solution. A dual key home also offers two separate self-contained residences under the one roof (similar to a duplex) to rent out.

The difference is that it is considered a single property and so you only pay one set of council rates instead of two, and so you can reinvest these savings into paying off your property sooner.

Options for Renters

How many families do you know that have an older relative living in an adjoining granny flat? How about people working from home offices? Young families, that rely on grandparents to help with caring for children? A dual key home offers some serious benefits to these prospective renters with 3 bedroom + 1 bedroom, 3 bedroom + 2 bedroom, 4 bedroom + 1 bedroom and more combinations available depending on the investor’s preference.

Live in One Side, Rent Out the Other

The best of both worlds! You build a new modern home that you and your family can live in, and you can rent out the second dwelling to generate a rental income stream. Thanks to the soundproof firewall, individual electricity and water bills, driveways and entrances you can live completely in your own space… with the ability to keep your eye on your investment.

Positive Cashflow

Rental yield tends to be higher for a dual key home compared to a traditional home. These two rental incomes can be used for mortgage loan repayments, with extra cash flow in addition. Alternatively, you may opt to pay off your mortgage quicker. With a dual key residence you may be able to claim two incomes and two sets of depreciations, and of course let’s not forget the potential for increased capital growth.