Why you should NOT buy dual key homes

We wouldn't see apartments/townhouses/units If that was the case imo

 

Thats a fair point

Personally the choice between an apartment vs dual key with a courtyard, id take dual key

Chances are eith the apartment you are sharing a wall anyway

 

Thanks for the post I am relatively new to property investment and doing some solid research this year. This thread caught my eye as I have just attended a seminar by unlock your financial future where they only “pushed” duo occupancies as a preferred choice. Aside from what I have gathered UYFF is a collective of Broker insurer wealth management etc its all very confusing why would they just be focusing on these types of properties? Would they normally only be good for investment if you could guarantee tenancy rates given you either have to ensure you have a huge family who want to live closely or run the risk of vacancy!? Thanks for the thread

 

Red Flag right there
Hang around this forum and read through heaps of the informative posts here and you might find that you won't ever need to attend one of those seminars again.

 

Because thats what they are selling. A car dealer that only sells cheap nasty chinese cars will tell you they are wonderful. And this dealer wants you to stay on their lot and never find out just how bad the cars are. A one stop shop.

I would be wary of one stop shops. Each link in the chain wants to eat and its self fulfilling that none are independent or impartial as the end game is how they all get paid. And many buyers will be misled by unqualified people representing themselves when discussing things like a credit person talking tax, a unlicensed "adviser" or "expert" discussing smsfs and so on. Its a concern the website promotes financial advice services yet the entity is unlicensed and the apparent enquiries are handled by a entity that is unlicensed for many of the services it promotes.

They say "partnership" but I dont see a single licensed entity, insurance and a raft of issues. A bit like a mortgage broker promoting tax advice, financial advice etc....

 

They say "partnership" but I dont see a single licensed entity, insurance and a raft of issues. A bit like a mortgage broker promoting tax advice, financial advice etc....[/QUOTE]

Thank you. Stupid question but I can’t find anything on ASIC or any other site about licenses to trade as a wealth creator/ advisor as Opposed to a licensed tax agent etc. appreciate the post

 

I know a number of high profile professional investors that almost exclusively purchase dual income properties. A few tips I have would keep an eye out for.

1) Be prepared to have a long holding period, for example 25 to 30 years, as the real gains are from the land value appreciation while the dual income is to cover your holding costs along the way.

2) The over/under capitalisation rule of thump. The value of the building property should equal approx 50% value of the total land at inception.

3) A dual income property is best designed for a corner block to give both tenants more privacy from seperate entrances.

4) Select a dual income property which is less than 5km from a large commercial district.

 

Perfect reason to NOT buy one

 

THIS is how you do Dual Occ. Properly

 

That looks like a good design.

 

It is

HOUSE

 

GRANNY

 

Saying dual lock is not a good idea is just plain wrong advice! It can work if designed right and in the right locations. I would do it few suburb of Sydney and Melbourne if it was allowed and in Brisbane BCC catchment if it was allowed.

 

out of curiosity did you consider detaching the granny flat? Looks like you have the room (width)

 

We do some of them detached. Some attached . Some rear detached. They all get exactly the same rent .

 

Good post and totally agree.
Have never been a big fan of these type of securities, purely cause its such a niche market for sale.

 

Like any asset, at a certain price it is overvalued and at a certain price it is undervalued. Just buy it when it’s undervalued........

 

People need to realise that investing can take many forms. What product works in one place, may not work in another. They also need to realise that we all have different circumstances & incomes & you need to tailor your investment in the right way for your particular set of circumstances.

I can not begin to count how many 'gurus' have told me over the years that I'd never make any money because I don't buy the right type of properties, yet here I stand, living off of rental income today.

So, if this property works for you, then that's great. And being a PPOR many of the arguments are irrelevant. The fact that you don't intend to sell any time soon & it would command a high yield should you rent it out, even better.

Run, as fast as you can from UYFF. These sort of places are all about making money, lots of it, from new investors that are green around the ears. You can find all the information you need, right here for free, where you have lots of active investors, not people paid to sell a product.