How much do you charge to teach your property investment strategies?
There’s absolutely NO COST… our services and advice are FREE!!
Property spruikers often demand 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 three unique types of residential property:
- Dual Occupancy Homes – these generate strong Cashflow Positive returns.
- Co-Living Homes – these generate even better Cashflow Positive returns.
- Duplexes – these are usually Cashflow Positive and 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:
I assume I’ll have to pay you a fee to source a Cashflow Positive or Instant Equity property for me?
NO! We work in a similar way to a mortgage broker who receives a fee from the lender you choose. In our case, we are paid by the builder or developer.
How do rents compare between standard houses, Dual-Occs and Co-Living homes?
Traditional family houses return a gross rental yield of around 3% – 5% p.a. On a $550,000 property, that’s $317 – $529 per week. A Dual Occupancy home of the same value should achieve 6% – 7% p.a. ($635 – $740 per week), and a Co-Living home should achieve 7% – 8% p.a. ($740 – $846 per week).
Using the above examples, Dual-Occs and Co-Living homes could give you up to $27,500 extra per year to pay down debt or build a deposit for your next Cashflow Positive investment property.
These homes will usually return $200 – $300 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.
Are Dual-Occs and Co-Living homes 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 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 – they 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 and Co-Living homes?
Extremely low! Consider this… 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 or Co-Living tenant, you continue to receive 40% – 66% of the rent from the other tenants. This provides you with a significant income safety net.
Are Co-Living homes suitable for NDIS tenants?
No, they’re not designed for the special needs of NDIS tenants.
Can I claim the usual Tax Deductions on Dual-Occs and Co-Living homes?
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 plant and equipment (division 40) and capital works (division 43). If you buy a new property, these valuable depreciation benefits could average over $8,000 every year for the next 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) 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 (around 5% – 6% p.a. vs 6% – 7% p.a).
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, 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, Co-Living homes and Duplexes in Queensland are built on a two contract system (i.e. Land Contract and Building Contract), stamp duty is only payable on the land… saving you at least $10,000!
How does Capital Growth on a Dual-Occ, Co-Living home and Duplex compare to a standard house?
The capital growth rate 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 own a block of land. Can you build a Dual-Occ or Co-Living 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 about these incredible properties, 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.