Dual Occupancy in QLD

I'm thinking of purchasing attached dual occupancy IP in QLD because the yield does look a lot better than any other form of residential IP.

Is lender generally ok with these, any specific details I need to be aware of?
Which lender is generally in favour for this type of IP?
Can I still purchase with 95% LVR with LMI capitalised for IP?

This yield looks so good and I was wondering why doesn't investors just go for this? Am I being too naive?

 

This is for an IP right? 95er investment loans are tricky.

Dual occupancy's aren't all that difficult to finance (2 on one title) - can go to 90 with a couple, but 95 would be tough (CBA would technically do it i think, but i'm not sure how feasible it is to realistically get through at that LVR for investment purposes).

Would need to be legal too otherwise you may have val issues - this happens for some stock without the right heights/etc in QLD - haven't seen one personally, but the logan people have mentioned it.

Rental yield may be capped at 6% with a few lenders (CBA and NAB).

 

Plenty of investors going for them. Just make sure the numbers work, aim for 6.5 to 7% gross yield.

From financing perspective, some of the valuations on the duals may fall short if downstairs isn't legal. Haven't had many issues lately but something to keep in mind.

Cheers,
Michael

 

Sounds like OP is going for a side by side dual occ? 3 bed one side and either a 1 or 2 bed in the other. All under one roof but look like a normal house from street. Ipswich is big on them and they're gaining momentum on a lot of new estates up here.

 

Just ensure the dual occupancy is legal in the council area where the property is located. Rules vary.
Marg.

 

Brisbane City Council has a big issue with these. We have numerous prosecutions happening now on people renting out separately. Also have a pending action against builders. marketeers who were pushing them.