Dual-Key / Twin-Key Dwelling Examples

I think that 690 per week return on 630 or 640K would still represent a very good return, to be fair.... it isn't as good as the return on the original investment of 560K of course... but then again, when they bought at 560K the returns were 630 per week.... At todays rates, 690 against 640 is still really good going I would suggest. far better going than most vanilla yielding properties could ever hope to produce.

To your point about "having" to sell... the prospects of having to sell are remote. These properties run large surpluses under IO or service themselves at P&I - which most investors struggle to achieve with vanilla yields even at IO if we are being completely honest .... so other than some extreme un-property related event occurring- divorce for example.... sales arent really on any of my clients radar. They bought these properties to do a specific job. Under IO their job was to produce 8-10K of surplus cash flow with which they could make extra repayments on non income producing, non deductible debt.... Under P&I their job was to pay down the INV property. Either situation, the job was debt reduction... which we all should have learned by now, is the key to improved borrowing power and improved holding power by avoiding P&I holding cost challenges down the line.

 

I agree that badly designed dual occ may face that difficulty, but for well designed dual occ I don't agree at all. Lots of people have parents living longer, or kids staying at home longer. Multi generational living is a growing trend. There has been a massive surge in the popularity of granny flats in NSW in the last decade. Perhaps because its a less mature market in WA, you arent seeing that yet. But the popularity of this product will grow in WA, just as it has in NSW

When we started doing these in 2017 in Orange and Bathurst - everyone said the same things. No one will want them . There isn't any demand. Blah blah blah.... still, today, people such as @dabbler and others continue to argue such things - in spite of overwhelming , one way evidence to the contrary. There is a mind set among those sorts of people that things must always stay the same. But if you can ignore those biases and look to the future needs of buyers and renters, you can only conclude that there is definitely a place for dual occ living. It wont ever be THE market. But it will certainly be part of the market.

 

Leave me out of your sales rants will you....please ?