Should You Or Should Not Invest In Dual Key Apartments?

Join Our Free Property Investing
Group On Facebook

A dual key apartment is segregated into two dwellings, with the added residence inside the first and both sharing the front door. Instead of a divided townhouse or duplex, it has one space, including two different self-contained areas with their bathroom, bedroom and living.

Benefits Of Investing In Dual Key Apartments

Here are some of the advantages of dual key investment.

1. Only One Set Of Fees

There is a long list of expenses associated with any investment property, such as strata fees. However, with a dual key apartment, this is streamlined.

2. Two Dwellings Means Dual Income

Better return on investment is the key driver for every property investor, and a dual key apartment likely offers higher income.

Therefore, you will have two sets of rental incomes on one title when purchasing such property.

3. Tax Benefit

The concept of the dual-key apartment is comparatively new in the Australian market, most of these properties are more recent, and that has its benefits when it comes to tax.

For instance, newer properties are more likely to have some depreciation, which would assist with taxes.

It is advisable to consult with your tax adviser or financial planner to understand the full tax implications on an investment property.

Downsides Of Dual Key Apartments

The disadvantages to investing in a dual key apartment are many. Here is a quick breakdown.

1. Lack Of Appeal

It is a relatively new concept, and with different property types to compete, a dual key apartment has restricted appeal.

Typically, they are only demanding as an investment property as they are not that great to live in, thus would possibly only appeal to a limited population of the rental market.

2. Premium Price Tag

Provided dual key apartments are newer in the market, investors may pay a premium for them. For instance, if you pay more than or equivalent to the asking price, you are not sourcing investment property below market value.

A successful investor should always aim for growth opportunities.

3. Limited Capital Growth

Dual key apartments are primarily limited to the investor market, yet the scope of capital growth is limited.

We advise our clients to decide between two single properties or dual key apartments – they should go for single properties below market.

Unlike a dual key apartment with two single properties, you will have two separate investments with the splendid potential for capital growth. Moreover, when needed, you can sell one.

Whether you are an experienced investor or a beginner, you need an adviser who can help you choose a successful investment portfolio at times like we are currently undergoing.
Let’s connect for a no-obligation consultation.
Share on facebook
Share on google
Share on twitter
Share on linkedin

More to explorer

Disclaimer: We recommend that you seek independent financial and taxation advice before acting on any information in our articles and newsletters. They contain general information only and have been prepared without taking into account your personal objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Any mention of interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply.

Join Our Free Property Investing
Group On Facebook