25 Aug 2017

Dual Occupancy - The New Kid with Big Rewards

When it comes to property everyone gets excited about a property or property type which delivers a higher than average return. Today we want to show you a relative new comer to the types of property available on the Coast which ticks a lot of boxes, especially when it comes to a great rental yield.

So let’s start with what is an average rental return? If you’re talking houses on permanent letting the returns across the Coast can vary but usually fall into the range of 4.5% to 5.5%. I’m going to show you a type of property which typically returns 6.5% and sometimes more.

Welcome to our new place in Palmwoods, this is one of the new breed of houses referred to as a dual occupancy or to some a dual key. It’s not a duplex because it can’t be split onto two titles. It’s what’s referred to as an as of rights build, meaning it doesn’t need any special approvals, and although some estates have covenants which have to be complied with, it’s really just a big house with some additional features.

The house measures 268m2 and has 5 bedrooms, 3 bathrooms and 3 garages and is built on a 900m2 block. It’s divided into two separate occupancies by a firewall with an acoustic blanket. Each unit has their own separate entries, water and power metres. Our side is a little over 180m2 with 3 bedrooms, 2 bathrooms and a double garage which would rent for around $470-$480 per week. The other side is an 88m2, 2 bedroom flat which rents for $360 per week.  The total spend was around $670,000 and the yield if renting both sides would be $830 to $850 per week.

In another example a client has built one in Peregian Springs on a 615m2 block, The house measured 248m2 and is made up of a 3 bedroom, 2 bathroom, double garage main unit measuring 160m2, plus an 88m2 1 bedroom unit. The total spend was $580,000 and the combined return is $730 per week or 6.5%. Interestingly it is typically the smaller more affordable unit which is snapped up for rent in super quick time.

Typically when people talk about flats, duplexes or apartments we think of small lot living side by side with neighbours, with very little privacy or personal living space and little or no garden. If you’ve watched the video you’ll see from the guided tour we are certainly not short of space in this house.

So why Palmwoods? What we particularly love about the Sunshine Coast railway towns of Yandina, Nambour, Woombye, Palmwoods and further south Landsborough and Beerwah is the tendency towards larger lot sizes.

You see not everyone who lives on the Coast is all about shopping or surfing, some of us are here for the climate and a more relaxed and healthy lifestyle and a slower pace.

Tim and I are empty nesters, so we don’t need a huge home anymore. For us it’s all about a big yard in a leafy setting to indulge our love of gardening, birds and wildlife and not feeling hemmed in, and of course room for the menagerie. Plus we’re still only 20 minutes from Maroochydore or the beach.

The other thing we particularly like about this style of housing is the flexibility it offers. You can live in one side and rent the other, you can rent both sides, use one side for family or air BnB or if the need arose to have a carer live nearby but still have your own privacy.

It’s a very flexible living solution, and while technically we now live in a flat we seriously don’t feel like this cramps our style.

If you’d like to know more about this style of property and lifestyle on the Sunshine Coast, we’d love to chat. 

 

Have a look at a little Facebook Live I recently recorded from my own home, which just so happens to be Dual Occupancy: 

 

 

 


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