Pros and Cons of Investing in Dual Key Property

The demand for property has found to be increasing with an ageing population and dual key properties are getting more attention among Australian real estate investors. These new additions to the property market offer flexible and potentially profitable options for many property owners. They typically act as a single-title property containing two separate living spaces, dual key homes are ideal for increasing rental returns and provide families a perfect living solution for their elderly relatives. A reliable investment advisor in Melbourne shares some significant pros and cons of dual key property investment.

Unlike duplex living that usually offers separate strata titles, dual key homes offer two income properties on the same title. Each section of the home can be rented to separate tenants, which allows for higher rental returns.

Dual key homes can boost rental yields but property owners can also use them to pay off the hefty mortgage. Many homeowners choose to reside in one section and rent out the other section of their dual key home to fund their ownership costs.

Dual key homes reside on a single lot, therefore, the investors will only have to pay one set of council fee and water costs. This way, owners can benefit from good rental income and will have to pay lower maintenance costs, unlike two separate investment properties.

With increasing population, dual key homes have been found to provide a suitable living solution for families hoping to house their elderly relatives nearby without compromising their lifestyles. Dual key homes also potentially attract students and first-time renters, who are looking for a low-cost residence.

Although dual key homes can be a perfect solution for different housing needs, they are also quite new to the Australian property market. Therefore, it is often difficult to predict how it may attract different renters and property investors. It is important to consider your target market and potential capital growth before investing in such a property

Due to its unpredictability and being so new in the market, home loan lenders and certain banks may have reservations in terms of approving mortgages.

Having two separate housing spaces on a single title can be ideal for rental returns, but it can get devastating when it comes to selling them, as they cannot be sold separately. This factor can limit the appeal of dual key homes and affect their market value. However, dual key homes can be re-converted into a single property easily to increase selling potential.

Whether you are a new property investor, trying to expand your portfolio, or looking to manage your existing properties, it can be a good idea to work with a reliable financial advisor. Melbourne property investment mentors can be helpful in easing your concerns.