Are dual-income properties a way to get ahead?

Are dual-income properties a way to get ahead?

Whether you’re a homeowner or an investor there’s a good chance you want your property to work harder for you and earn some extra income.

One way to do this is by purchasing a property that allows for dual living, which is essentially when there are two-self-contained dwellings on one property title.

If you’re an investor then this can mean double the income, or if you’re a homebuyer you could live in one part of the property and rent out the other.

Common dual-living properties include properties with granny flats, or there are also duplexes or dual-key residences where there are separate locked off living quarters and common areas within the same property.

 

The benefits of dual-income properties

Obviously the big drawcard of a dual-income property is the increased income potential. Plus, if you have any vacancy periods for one of the dwellings you will still have some cash flow coming in.

A dual-income property also allows you to maximise the potential of a property without having to subdivide, which means less holding fees, insurance costs and council rates.

 

What to look out for

The drawbacks of a dual-income property depend on the individual situation. One of the big questions you need to ask yourself with a dual-income residence is how appealing the property will be to the local buying market, as sometimes the these types of properties mainly appeal to investors and not to owner-occupiers.

You really need to research the local market and assess its desirability and potential for capital gains, when compared to other property types. It’s also worth noting that not all councils support dual-income properties, so find out what rules apply where you live.

Every situation is different. Ask yourself what your property goals are and make sure you talk to experts such as local real estate agents and financial advisors to get the best possible advice.

 

Source: www.professionals.com.au