Hello i signed up to this forum not long ago, I currently own 2 investment properties looking to purchase my next one in the next couple of months. I’m after a good cash flow property, I came across the dual key properties in Ipswich qld they seem to have many benefits, I’ve been offered one for $420 with rent return around $540 per week. Any advice or pass experience with dual key would be extremely helpful. Cheers Matt
This is actually something I’ve also been looking into. The positive cashflow is a great reason to buy into one – but I’ve found it hard to find many. I’ve been looking around the Sunshine Coast and I know it’s only web browsing and I should definitely do my due diligence and get in contact with local RE’s but I’m not at that point in my investing career as yet. I’ve also been invited to invest in a new suburb which is being developed but I don’t think that purchasing one of these Dual Key properties off the plan is a good idea as it won’t be complete for approximately 1-2 years, so I personally don’t think it’s a good investment.
That’s all beside the point – my advice would be to do your due diligence and make sure the price is right! I know after reading Steve’s first book, having one of these Dual Key as an IP is perfect for positive cashflow! Which is exactly what you want!
I’ll be here to see what experience others have had.
Goodluck Matt! And welcome to the forum!
Thank you for getting back to me, I agree with the property taking some time to build, but with good cash flow it could be worth waiting a year or so. Hopefully some memebers will have some experience with dual key property.
Circa a 6.69% yield, reduced market size (as not a huge amount of owner occupiers would touch something like this) – not that stellar when you can reach similar yields for freestanding properties, or higher in quite a few areas in Australia.
Makes sure the capital growth potential is still there for the property, no point buying into a property with fairly average yields and subpar growth – invest in mediocre properties and get mediocre results.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hi,
I would echo Corey’s sentiments capital growth and cash flow need to be combined to build wealth. I find old duplex pairs can fit this bill, but new ones often will be a slow road to any growth. Growth is possible but not a given in a place like Ipswich with so much land. It had better be in a special spot with lots of demand and amenity to get the growth. With a new development product you also need to be very careful about your entry price.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Suburbs like Alexandra Hills – Redland Council (near Brisbane) have many properties with downstairs area legal height, and potential for dual key. With reno/value add potential as well. Property can be later on sold to owner occupier without dual key flag. Person I know recently purchased one 3 bed house with downstairs rumpus and bathroom.Added some partition walls and doors, and now has common entry, 1 bed unit downstairs and three bedroom unit upstairs. No approvals triggered, because it is established dwelling and no changes were made to the building envelope. Combined rental $600. House purchased for $400, and reno cost on top (dont know how much). Much better suburb than Ipswich. We will be soon looking at doing the same.
I have just recently finished constructing 2 new granny flats or “auxiliary units” in the Logan area that can be rented out to separate tenants from the main residence. In a nut shell the properties cost about 260k to purchase and the new flat about 100k. The rental returns are now between $550 and $650 per week. Both the properties have separate electricity meters and waste bins. Recent changes to the town planning scheme are quite generous. If you would like to know more contact me.
Luke Shephard | BelCo Constructions
http://www.belcoconstructions.com.au/
Email Me | Phone MeWhat are your thoughts on Logan? such suburbs as slacks creek, Woodridge, marsden. There seems to be some movement happening recently and still some really good cash flow properties.
Thats a good return. Try a dual occ development with a subdivision into 2 lots in Melbourne for solid captal growth and equity. We can help you in thst process in Victoria.
#Planning Permit | AuArchitecture
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Email Me | Phone MeProperty Subdivision expert with 250 planning permits approved by Melbourne Councils
Hi Matthrtney,
Great area to invest in my opinion. Logan has a great public transport network, there are plenty of schools and sporting facilities, plenty of job opportunities as it is a hub for many industrial and warehousing businesses. There is plenty of shopping centres and retail also. The rental market in Logan is very competitive and vacancy rates are very low driving up rental returns. I am getting lots of enquiries regarding building granny flats on existing investment properties to further increase returns. I have just completed 2 granny flats and have another 2 just about to start.
Luke Shephard | BelCo Constructions
http://www.belcoconstructions.com.au/
Email Me | Phone MeHi MattH,
What are your thoughts on Logan? such suburbs as slacks creek, Woodridge, marsden. There seems to be some movement happening recently and still some really good cash flow properties.
As per BuyersAgent’s post above, look for the area that DOESN’T have lots of land nearby that is able to be developed. e.g. North and West of Woodridge have land available, but it also has the train line going right thru that North Western portion, so that is a positive offsetting any negative.
Slacks Creek is somewhat land-locked with just a few small pockets of land still available (e.g. Paradise Road).
Kingston has some land to the East, locked to North and South, and little to the West (but with Industrial operations taking hold further West – so, jobs??). Large lots within “settled” Kingston are being sold off to build units once again (like in the early 1990’s).
Marsden is a worry in that, land that was under water in the 1974 floods remained as large rural lots until about 10 years ago. Suddenly, these lots are being built on – so Marsden has quite a lot of land suddenly “available” for development. Just watch WHERE you buy though, especially in the low-lying 2nd and 3rd Avenue areas.
Crestmead is one that has been heavily developed more recently – and with huge acreage to the SOUTH (Park Ridge), I wouldn’t be expecting much growth in values for some time there.In all of those cases, it depends WHERE within the suburb that you look/buy – location is still key, and the above generic comments would not apply to all of each suburb mentioned. Certainly, these parts of Logan are more likely to provide +ve cashflow.
Benny
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