🔥 Considering a custom-built home for investment? Learn how to double the value with a dual key property!
Investors always seek ways to maximise their building investments in today’s market. One strategy that has been trending in recent years is dual key lockups or Multi-generational properties.
These properties offer a range of benefits, with their two separate living spaces, each with its entrance and amenities. One key advantage is the potential for dual rental income from one property, significantly boosting your returns. The flexibility to have different types of tenants further enhances the financial appeal of these properties.
Building a dual key property allows investors to diversify their income streams and potentially get higher returns than single-unit properties. These properties also give more flexibility on tenant arrangements, empowering investors to cater to different market segments, such as families, professionals, or students. With higher rental income and more types of tenants, building a dual key lockup property is an intelligent investment for real estate investors to maximise their property.
Read on as if you are in the market to build a dual-keyed property. This could be the correct vehicle to financial freedom – enjoy
💡 Construction consideration of Dual-keyed properties
When engaging a professional building contractor such as Risen Developments (Risen), there are several ways we can guide you with the construction of your dual-keyed property, either by building a brand new custom-built home or undertaking major home renovations. Generally speaking, building contractors with experience in dual-key living will help you make that crucial decision, giving you the pros and cons of either a renovation or completely new construction.
Homeowners can choose based on their needs, the existing structure’s capacity, and zoning regulations. This choice enables homeowners to make decisions that align with their investment goals and vision for their property.
🏘️ Why is a dual-keyed property less risky than a Duplex or Secondary Dwelling?
As with any investment, there is a risk; limiting the risk is key. As builders, we share risk, and experience mitigates some of this. Still, it comes down to limiting liabilities or anomalies, and with dual-keyed investments, there are fewer than with other forms of investments.
A Duplex property is built similarly: you have two keys but two entirely separate homes controlled by a Strata or Torrens title. Two forms of the council, land rates and property taxes, are attached to each duplex.
A secondary dwelling is similar, but in this case, it is generally a separate structure on the same plot of land; again, Two forms of the council, land rates and property taxes, are attached to each property.
A multi-generational home works on the same principle as dual-keyed living and can be called a dual key property or multi-generational home. It is a single building divided into two separate independent living areas. However, we see customers looking for multi-generational homes who want a common door. Still, again, this is always an option as dual-keyed and multi-generational homes can be keyed the same.
💭 Ultimate flexibility for different living situations
One key benefit of constructing a dual-key lockup property is its flexibility for different living situations. This innovative design allows for two separate living spaces within a single property, providing many opportunities for homeowners, investors, and tenants alike.
For homeowners, a dual key lockup property enables the possibility of multi-generational living arrangements. Families can enjoy the benefits of living together with separate entrances and living spaces while maintaining a sense of privacy and independence. This is particularly advantageous for families with elderly parents or adult children who wish to live nearby but still desire space.
Investors also benefit from the flexibility of dual key investment property by maximising their rental income potential by offering two separate rental units within a single property. This property type is desirable in high-demand rental markets with a shortage of affordable housing options, particularly Gold Cast.
Moreover, the property can be easily adapted to suit changing circumstances when building a dual key lockup.
For example, homeowners may rent out one unit to generate additional income, use the second unit as a home office or guest suite, or even combine the two units into a larger living space as their needs evolve. This adaptability ensures that the property remains highly functional and valuable in the long term.
Overall, the flexibility offered by dual key lockup homes makes them an attractive option for homeowners, investors, and tenants alike. Whether for multi-generational living, rental income potential, or adapting to changing circumstances, this innovative design provides a versatile solution that meets the diverse needs of modern lifestyles. With the ability to cater to different living situations and preferences, dual-keyed properties unlock a wealth of potential for those seeking a genuinely dynamic and adaptable property.
🤑 Potential tax benefits and deductions
One key advantage of building and investing in this type of property is the potential tax benefits and deductions accompanying it. First and foremost, constructing a dual key lockup property can provide significant tax deductions for investors, particularly mum-and-dad investors looking to downsize.
By splitting the property into two separate units, investors can claim deductions for expenses related to each unit individually. This means that expenses such as mortgage interest, property management fees, and repairs and maintenance can be allocated between the two units, maximising the available deductions for the property as a whole.
Additionally, investors may be eligible to claim depreciation deductions on the construction costs of the dual key lockup property. Furthermore, investors can also take advantage of tax benefits associated with negative gearing when investing in a dual key lockup property.
Overall, the potential tax benefits and deductions associated with constructing a dual key lockup property can make it a desirable investment option for savvy investors.
🔗 Conclusion
Craig Preston, Master Builder on the Gold Coast
Investing in dual key lockup properties is a strategic move that enables you to diversify your income streams and achieve a higher return on investment than traditional single-unit properties.
As you consider your next investment, remember that a dual key lockup property could be the key to unlocking financial freedom.
When you select Risen as your strategic building and construction company, owner Craig Preston will work with you on various building construction types, including new builds or renovating existing buildings. We will align our building strategy and plan with your investment goals to maximise your property potential, giving you greater control over your investment. Enquire to discover more about this inspiring and potentially life-changing investment choice.
Are you looking to build a Dual-keyed property on the Gold Coast, or are you curious about the council’s requirements? Please click to review Coast Council building applications.
# All photos and illustration artwork(s) are trademarked and intellectual property of Risen Development.
* Disclaimer: – * All costs displayed are for reference purposes only. It would be best to get a firm quotation on any size project.
🔥 Frequently Asked Questions
Here is some simple advice on building a dual-keyed property, either a New home or a Major Renovation, and why most dual key projects require a specialised, experienced, licenced builder.
What Timeframe Should we Anticipate for Construction?
The average time frame for knocking down and rebuilding a new dual-keyed property is between nine and eighteen months, depending on the complexity of the construction work.
When major renovations are undertaken, your home takes seven to twelve months to complete. The duration depends on various factors, including the availability and experience of the builders and subcontractors they employ. Some builders can complete construction in as little as six months. However, rushing the project may result in inferior work.
In any case, most construction time frames will remain constant throughout the building process.
If you are unsure how to judge completion dates before commencing construction, it is important to determine the complexity of the construction or renovations/additions you are looking to undertake.
How long to design, planning and getting approval
When you consult with us, the design and planning process involves sitting down with you to discuss any existing plans or ideas. We will then formulate a plan for approval submission to the relevant councils.
This process typically takes four to eight weeks to complete and will be beneficial for everyone. (Please note all council municipalities differ and so too does their timing for building approval)
Some customers may already have their plans, designs, and existing council approvals, which can and do help in speeding up this initial process.
Where Will We Live When the Construction Commences?
Due to safety concerns and this construction style, the homeowner is often advised to reside elsewhere during construction. However, builders can section off a living area so that the homeowners can remain onsite with some smaller projects.
In most cases, the homeowner finds different accommodations during the construction process. For example, you may stay with family, rent a hotel room, or camp elsewhere on your property.
What Are Local Council Requirements?
All new custom home builds and major house renovations, including dual-keyed projects, require council approval to ensure the build complies with local building requirements. These requirements are primarily intended to comply with height, footprint, and safety standards for various building components.
Local Council within our building licence envelope
- Gold Coast residents, please review the local council building guidelines.
- Ballina residence, please review the local council building guidelines.
- Queensland Government, please review the building approval and inspection guidelines.
- For the Tweed Shire residence, please review the local council building guidelines.
How Do You Finance My Construction Costs?
The most common way to finance the a new construction or major renovation loan. Unlike most conventional loans, you do not receive a lump sum, and the lender releases money in stages to cover the cost of construction.
You draw down your loan in instalments throughout the construction process. For example, you may receive an instalment to cover initial preparation, which includes the cost of plans, permits, and fees.
Along with construction loans, some homeowners may use equity to take out a loan. A home equity loan is a second home loan taken out on the difference between the property’s value and your existing loan balance.
Do i need a Building Certifer for dual keyed property renovation?
Before starting any dual keyed property renovation, you need a qualified building certifier to assess your property. The building certifier may work for the local government or private practice. They meet with your builder and inspect the property to ensure that the plans comply with all local requirements.
Building certifiers will schedule inspections at different stages of construction, including after the completion of the addition. The certifier needs to give final approval before the structure can be occupied, where an occupational certificate will be issued.
A Building certifier is recommended for any construction project but is completely INDEPENDENT of any builder or construction company.
