Dual Income Strategy

It’s possible to increase rentals yields from your residential property to more than 7%+ and many of our investor clients are taking advantage of this opportunity. This is known as a dual income strategy and in today’s tougher lending environment this strategy can assist investors improve their loan serviceability.

Constructing Second Dwellings or Auxiliary dwellings or ‘granny flats’, has recently become a popular property investment strategy in NSW and certain Brisbane local council areas. Investors may add the granny flat to an existing property that they own or purchase a property with this strategy in mind.

Landlords do not need to subdivide their land to create the second dwelling so can save lots of money on council fees. The granny flat (secondary dwelling) will be on the same title as the primary dwelling so cannot be sold separately.

Through careful planning and site selection however, investors may be able to subdivide the second dwelling in the future. So when land values have risen, the investor may want to capiltalise and split the titles and sell one of the dwellings or have them revalued as separate titles.

The dual income strategy may suit investors who are looking to increase their cash flow and loan serviceability. They may already have considerable equity in their property portfolios and wish to strike a good balance between growth and cash-flow.

Call us now on 1300 781 824 to find out more about how we can help you with dual income strategies.

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