One Property, Two Incomes

 

A dual-income investment is effectively what is says on the tin – a property that provides two incomes to an investor, by way of two separate rental agreements. It may be a granny flat, a duplex, or, a dual occupancy/dual-key property.

 

All property types have provision for two incomes, but each differs slightly in its presentation, cost, and buyer/renter appeal.

 

A dual occupancy home is similar in some ways to a duplex as they are still two homes on the one block. The main difference between a dual occupancy and a duplex is that, in most cases, you cannot have separate titles with a dual occupancy property. A dual income property sits under a single title and provides higher tax deductibility.

 

Dual-occupancy properties typically share infrastructures such as entrances and driveways and have separate electricity, water, telephone and gas bills.

 

Advantages of Dual-Income Investment Properties

 

• Maximising the potential of one block of land: instead of having a single property on a large block of land, you can utilise more of the space available to you
   

• Improved cash flow, which can contribute to your loan-servicing capacity

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• Improved cash flow, which can contribute to future maintenance costs

 

• Increased portfolio size without the cost of outlay associated with buying two properties