To put things simply, dual occupancy properties are properties that act as two sources of rental income. Owners are allowed to construct 3, 2 or 1 bedroom apartments to be built on the same lot by some local councils. Needless to say, with two incomes coming in, owners will make superior returns on both the long and short terms.
In terms of cash flow, the average dual occupancy property, purchased at around $550,000 can be positively geared from the first day. A dual occupancy property at a price of $550,000 can demand a combined rental of around $670 a week in comparison to $550 a week from a single occupancy property. The additional $120 that you receive each week means that your property will yield twice the cash flow return even if you hold the property for two decades and pays off no debt.
Dual occupancy properties deliver a much better cash flow. This means that you will need fewer of these types of properties to achieve your financial goals or retirement goals. Let’s say that you purchase three properties priced at $550,000. These properties will be rented out with a 5% growth in rental for the next 20 years without paying off any debts. In the end, you will generate a positive cash flow of over $100, 000 a year. In order to achieve this same cash flow, you will need to purchase 6 single occupancy properties. With a dual occupancy property, you will take on only half of the debt to achieve the same cash flow.
So how does one get into dual occupancy property investing? For starters, you need to consult an expert in property investment such as Capital Wealth Property. First, we conduct a site analysis and feasibility study of your property to determine the cost and the right approach to construction. With our highly qualified and well-connected team of professionals, we can also help you find great development sites for dual income properties. Details such as obtaining building permits and subdivision permits will all be taken care of, by Capital Wealth Property. Most importantly, we can present you with an accurate forecast of the total price and other important facts up front to prevent any uncertainty and doubts.
If dual income property investment is something you wish to be a part of, contact Capital Wealth Property today, for more details.