Property investors are seeking income and growth when they purchase an investment property and in regional areas like Newcastle or the Hunter Valley many investors expect the rental income return to be high, particularly if they don’t expect their to be massive growth in value.
Dual Occupancy Investment Properties give investors VERY high rental returns as well as land ownership and these are the figures..
A dual key is similar to a townhouse or the old semi-detached dwelling in that they have two households under the one roof and these days you often can’t tell that it’s two dwellings.
Dual key properties are similar in concept to a granny flat, except that they are attached dwellings (with a fire rated wall between them).
Learn more and see a virtual tour of a Dual Occupancy Property
Dual Occupancy New House & Land Investment Property Between Kurri Kurri and Maitland NSW
The Lower Hunter Region of Newcastle goes from Beresfield to North Rothbury. The central area in this region is between Kurri Kurri and Maitland and this area is growing very quickly.
Some of the major land estates include:
- Buchanan Ridge
- Avery’s Rise
- The Loxford, and
- Wallis Creek
Some of the largest and best known property developers are managing these projects, including Walker Corporate and McCloy Group and that’s a sign of a good quality estate and development.
If you want to buy a house and land package in this area beware that no all developers want investors to build dual occupancy properties, but prefer owner occupiers.
Most households are getting smaller so 1 to 2 bedroom houses and apartments are very popular for single tenants and couples.
Very Good Rental Income in Hunter Region
This particular property has a rental appraisal of:
- Unit 1 – $600-$650 per week
- Unit 2 – $370-$400 per week
That’s a total weekly income of $970 to $1,050 per week – for a brand new property where you’ll be able to claim the cost of interest and depreciation from your taxable income.
That’s between $50,440 and $54,600 per annum.
Purchase price for new house and land package
Unlike a single contract this is a development where you’ll purchase the land first and then pay a builder to construct the house on your land for you.
The costs for this investment are made up of these costs:
This is a Dual key design as you would be aware the stock list price is $1,000,000
- Land $500,000
- Build $500,000
Total Cost = $1,000,000
Return on investment is between 5 – 5.5% (on a brand new investment property).
If you have a good income and perhaps some equity in your own home, this could prove to be a positive cashflow investment property!
If you are interested, please make contact and quote “Maitland Region”
Interest Expense and Depreciation
Interest is a real holding cost for owning property and it reduces your total, taxable income, which in turn reduces the amount of tax you pay.
Depreciation is another way to reduce your taxable income but it doesn’t come from your cashflow. Both of these holding costs make buying an investment property a good idea.
If the current interest rate is 6% and you borrow 80% of the total price (ie. $800,000) and you get an “interest only” loan then your annual repayments are $48,000 or $923pw.
In this scenario your cashflow is positive – but you haven’t included management fees, council rates and water rates.
Property Investment Training Course
If the figures kind of make sense but you want some spreadsheet templates and do your own, more comprehensive financial forecasts enrol into our Property Investment Training Course & Support.
We can help you find similar new house and land packages or existing dwellings that are ideal for investors.
Learn more about Dual Occupancy Property and Investment Returns