How much do you charge to teach your property investment strategies and what fees are involved to source a Cashflow Positive property for me?
There’s absolutely NO COST… our services are FREE!!
Property spruikers often charge thousands of dollars for seminars, training courses and mentoring programs and the investment schemes offered are usually over-hyped, intentionally complex and potentially high-risk (sometimes even illegal).
To avoid these problems, we’ve created simple, low-risk investment strategies that average wage earners can use to build a solid asset base and strong passive income stream to provide a financially secure retirement. This is achieved with two unique types of residential property:
- Dual Occupancy Homes – these generate strong Cashflow Positive returns.
- Duplexes – these offer the potential to make up to $130,000 Instant Equity.
You can learn more about these powerful wealth creation strategies by reading our investment articles:
Dual Occupancy Homes https://www.brisbaneunitsales.com.au/dual-occupancy-homes/
Instant Equity https://www.brisbaneunitsales.com.au/instant-equity/
Retire Richer! https://www.brisbaneunitsales.com.au/retire-richer/
Cashflow Positive Property https://www.brisbaneunitsales.com.au/cashflow-positive-property/
Prepare Yourself for Investment https://www.brisbaneunitsales.com.au/prepare-for-investment/
We also recommend you visit the MoneySmart website run by the Australian Securities and Investments Commission (ASIC): https://www.moneysmart.gov.au/investing/property https://www.moneysmart.gov.au/investing/invest-smarter/negative-and-positive-gearing
What’s the rental difference between a standard house and a dual-occ?
As a rough guide, traditional homes return a gross yield of around 3% – 5% p.a. ($288 – $480 per week on a $500,000 property), while a Dual Occupancy home of the same value should achieve 6% – 7% p.a. ($577 – $673 per week). This gives you an extra $5,000 – $20,000 per year to pay down debt or build a deposit for your next Cashflow Positive Dual Occupancy investment.
These properties will usually return $100 – $200 per week after all costs including mortgage payments, rates, management fees and insurance. In real terms, Cashflow Positive properties cost nothing to own and generate an after-tax return of thousands of dollars each year for most investors.
For investors who want absolute certainty about their income, we can also offer a unique 10 YEAR LEASE BACK GUARANTEE on select dual-occs. Although the rental returns are slightly lower than market rates, your rent is Guaranteed by the builder for the full 10 years, including any periods of vacancy or if the tenant defaults on their lease agreement. If you decide to sell, the balance of the lease period is transferrable to a new buyer.
Are dual-occs easier to rent than standard houses?
Yes, here’s why:
- Affordability – it’s far more affordable for tenants to rent a self-contained 1, 2 or 3 bedroom dwelling compared to an entire 4 or 5 bedroom house.
- Demand – around 7 million Australians live in rental accommodation. The majority of dwellings are occupied by just 1 or 2 people, so it makes sense for them to rent smaller, less expensive homes.
- Rarity – dual-occs represent less than 1% of all new houses being built. As a landlord, this gives you a huge advantage as you won’t be competing with dozens of other investors all trying to rent their standard 4 bedroom properties.
What are vacancy rates like with dual-occs?
Extremely low! If you have a vacancy with a unit or a standard house, you receive zero rent until a new tenant moves in. However, if you lose a dual-occ tenant, you continue to receive 40% – 60% of the rent from the other tenant. This provides you with a significant income safety net.
Can I claim the usual Tax Deductions on a dual-occ?
Yes! The Australian Taxation Office (ATO) allows you to claim tax deductions for expenses incurred such as interest payments, council rates, water charges, repairs, maintenance, building insurance, landlord insurance and management fees.
In addition to the tax deductions outlined above, you can also claim depreciation on fixtures & fittings and the construction cost of the property. These valuable tax depreciation benefits could average over $8,000 every year for 40 years!
What’s the difference between a Duplex and a Dual Occupancy House?
A duplex will typically cost at least $100,000 more than a dual-occ house in the same street. That’s because duplexes are usually larger (e.g. 6 beds, 4 baths, 4 cars) and require a bigger block of land. They also have higher council infrastructure charges to allow strata titling. Although they are still cashflow positive for most investors, the rental yields are slightly lower than on dual-occ houses.
One major benefit of a duplex is that it can be strata titled into two separate units, instantly boosting the combined value of the homes by up to $130,000!
That’s amazing when you consider there’s no physical work involved and the cost of strata titling is less than $10,000.
This could be a great strategy for investors who want to achieve immediate capital growth/equity to fund their next property purchase.
What does ‘turn-key’ mean?
It means the home is fully completed and ready for you or your tenant to move straight in. These quality homes feature European kitchen appliances, stone bench tops, air-conditioning & fans, blinds & security screens, two undercover alfresco areas, concrete driveway & paths, turf, fencing, landscaping & clothes lines.
You also have the option to modify or upgrade some aspects of the property to suit your specific needs.
What is a fixed-price contract?
Our builders normally use Housing Industry Association (HIA) fixed-price contracts which include all site costs such as an engineer’s soil test, contour survey, site leveling and retaining walls. This ensures complete peace-of-mind that you won’t have any costly surprises.
Is Stamp Duty payable on the full purchase price?
As most dual-occs in Queensland are built on a two-contract system (i.e. Land Contract and Building/Construction Contract), stamp (transfer) duty is only payable on the land… saving you at least $10,000!
How does Capital Growth on a dual-occ compare to a standard house?
The capital growth rate of a dual-occ should be at least as strong as that of a standard home in the same street.
That’s because we select properties that are located close to the key amenities and infrastructure that drives population growth, rental demand and capital growth. These areas include major employment hubs, good public transport, schools, hospitals, cafes, shopping centres, plus leisure, entertainment and sports precincts.
I already own a block of land. Can you build a dual occupancy home for me?
Yes, provided the land meets council zoning requirements, is the right size and suitable for a concrete slab construction. Our builders can either custom design a unique home for you or use an existing design which would be more economical.
For further information or to arrange an inspection of a completed Dual Occupancy home, please contact Brian White on 0418 360 490 or email@example.com
NOTE: Returns will vary depending on your personal circumstances. Always seek independent financial, legal and taxation advice before making any investment decision.