[On-Demand Webinar] How to Boost your Cash Flow with Dual Living Investment Property
1. How to Boost Your Cash Flow
with Dual Living Investment
Property
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3. • Property investor for the past 10 years
• Personal experience with renovations &
cash flow properties
• Great amount of industry experience
Dennis Wong
5. Material contained in this presentation is an overview only. It should not be
considered as a comprehensive statement on any matter nor relied upon as
such.
This presentation contains general information only and does not take into
account your personal objectives, financial situation or needs and you should
consider whether the information is appropriate to you before acting on it.
Before acting on any information you should consider seeking advice from a
financial adviser and your accountant before making any financial decision in
relation to any matters discussed in this presentation.
General advice disclaimer
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12. What is a dual income property?
• Single property that can provide two
incomes to an investor
• Examples of dual income properties
include:
• Duplexes
• Properties with Granny Flats
• Dual-living
13. Advantages of dual income properties?
• Maximise the potential of one block of
land
• Increased rental income
• Generally the same price bracket as
single dwelling properties
• Capitalise on higher rates of
depreciation
• Potential to create equity uplift on
completion & strata title
• Reduced exposure to risk of vacancy if
one tenant decides to leave you still
have income
• Can live in one and rent the other
14. Duplex Overview
• Purpose built two dwellings on one
property that often share a common
central wall
• Duplex can be on one title
• Strata title opportunity to obtain 2
titles allowing each side of duplex to
be sold individually
• Potential to create equity after strata
titling
• Attached or detached
15. • Separate driveways for each dwelling
• Each dwelling has its own garage
• Good layouts keeping the bedrooms
away from living spaces in other
dwelling
• Presents like two separate houses
• For strong capital gains, buy where
duplexes are the exception & not the
norm
• Configuration is important, side-by-
side or corner positions are ideal.
• Corner block allows for more desirable
design
Duplex example
16. Pros
• Pricing – can be more
affordable then a lot of
houses in the same area
• Additional income streams –
live in one & rent the other
OR rent both out
• Sell one & hold the other –
potentially owning it with no
loan
• Only one neighbour – unlike
in an apartment complex
• Low maintenance lifestyle
• No body corporate fees
Duplex – Pros & Cons
Cons
• Tenants – noisy or difficult
tenants to deal with
• Less privacy
• Common wall can be a turn
off
• Smaller living space
17. Granny Flat Overview
• Self-contained on the same block of
land and are secondary to the main
property
• Granny flats have their own
entrance, kitchen, bathroom,
bedroom and laundry
• Allows you to receive a 2nd income
off your property for a smaller
investment
• Generally free standing
• Must have a separate &
unobstructed pedestrian access
18. • Perform better the closer you are to
the city centre due to the higher
density populations
• $100,000 is often quoted as a starting
point for the cost of building a granny
flat
• May turn a negatively geared property
into a positive one
• Good layouts ensure there are
separate entrances so tenants don’t
cross paths
Granny Flat example
19. Pros
• Pricing – cheaper investment
than buying another stand
alone property
• Additional income stream –
live in primary dwelling & rent
out granny flat
• Add value to property
• Additional space for relatives
or visiting friends
• Easier to rent out for short
term on sites such as AirBnB
or Stayz
Granny Flat – Pros & Cons
Cons
• Difficult tenants – you’ll
have to deal with any issues
• Less backyard space /
privacy
• No secure garage space or
parking space for granny
flat, often street parking
• Can’t be on a separate title
so can’t be sold separately
• Different rules in different
states – e.g. in Victoria a
granny flat can only be
rented to a person
dependent on a resident of
the main dwelling
20. Dual living Overview
• A purpose built house with two
separate dwellings
• Have two separate entrances
• Allows two separate leases
• Strata titling not available
• Primary dwelling larger then
secondary dwelling
21. Dual living example
• Two separate dwelling entrances
minimises cross over with tenants
• Each dwelling has its own garage
• Main dwelling has all the bedrooms
away from the common wall
• Presents like a house with one entry at
the front
• As its not detached you can build on a
smaller lot
22. Pros
• Two incomes from one title
• Higher rental yield
• Low maintenance
• No strata fees
• No town planning or council
charges
• Cheaper build than Duplex
• One set of council & water
rates
• Stamp duty on land only
Dual Living – Pros & Cons
Cons
• Can’t be on a separate title
so can’t be sold separately
• Living close proximity to
other tenant
• Repairs – multiple kitchens
& bathrooms to maintain
• Potentially noisy for
secondary unit bedroom
23. House
• 4 bedroom, 2 bathroom
• Median price - $862,500
(past 2 years)
• Median Rental - $575
• Median gross yield – 3.47%
Cashflow Example of House Vs Dual Living
Dual Living
• 3 bed & 1 bath + 1 bed & 1
bath (upstairs/downstairs
configuration)
• Asking $859,000
• Potential Rental - $900 per
week
• Potential Gross Yield – 5.45%
Location: Lutwyche (6.2km from Brisbane CBD)
Close to:
Royal Brisbane & Women’s Hospital (3.2km)
Windsor Train Station (1.8km)
24. House
• Weekly Rent - $575 per wk
• Council & Water Rates - $650
per qtr
• Insurance - $1,000 per yr
• Letting Fee - $575
• Management Fee – 7.70%
• Repairs - $500
• Interest Rate – 4.3%
• 20% Deposit
Cashflow Example of House Vs Dual Living
Dual Living
• Weekly Rent - $900 per wk
• Council & Water Rates - $650
per qtr
• Insurance - $2,000 per yr
• Letting Fee - $900
• Management Fee – 7.70%
• Repairs - $1,000
• Interest Rate – 4.3%
• 20% Deposit
26. Duplex Example
Location: West Wallsend NSW (21km from Newcastle CBD)
• Each Duplex consists of 3 bed, 2 bath & 1 car
• Rental Appraisal: $440-$480 per week / per property
• Sale Appraisal: $450,000 - $480,000 per property
Appraisals provided by First National Newcastle City
Total Package Price: $835,628
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46. Questions?
Thank you & good luck on your investing journey
http://info.realestateinvestar.com.au/strategy-session
Notas do Editor
We are focused on helping investors achieve their goals, and above all help them acquire their next investment property. We aim to help setup a systematic approach to reducing debt and building wealth. Ultimately our goal is to help you purchase the perfect property, at the right time, at the best possible price."
Duplexes with one in the back is not ideal – potential for neighbor to walk past bedroom or bathroom window late at night
Little or no depreciation on older primary dwelling
2nd entrance to secondary dwelling hidden – usually one inside garage and other down the side of the house
Used low end rental appraisal amount $440 per week
Change to $460 per week in rent per property
7 minute drive to Westfield North Lakes (Cinemas, IKEA, dining, department stores), Griffin State School 300m away, 1km to bus, 3 mins to medical & dental facilities
Primary & secondary schools, major shopping centres, Logan Hospital, Train station at Loganlea, Logan Mwy and M1
Used low end rental appraisal amounts $355 & $260
Used mid range rental appraisal amounts $365 & $270
