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[On-Demand Webinar] How to Boost your Cash Flow with Dual Living Investment Property

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In this on-demand webinar you will learn how to boost your cash flow by investing in dual living investment property

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[On-Demand Webinar] How to Boost your Cash Flow with Dual Living Investment Property

  1. 1. How to Boost Your Cash Flow with Dual Living Investment Property Thanks for joining us… Audio has not yet commenced. Please ensure Your speakers are on, volume is up and not on mute. You can test your audio in the control panel of the Go To Meeting software, under audio preferences.
  2. 2. Maximise audio quality • Please ensure your speakers are on, volume is up and not on mute. • You can test your audio in the control panel of the Go To Meeting software, under audio preferences. • If you can’t hear us yet, please ensure your speakers are on and turned up. • TURN OFF: Outlook, Skype, online back-ups and any music or video downloads. • Faster internet = better quality audio.
  3. 3. • Property investor for the past 10 years • Personal experience with renovations & cash flow properties • Great amount of industry experience Dennis Wong
  4. 4. • Senior Property Strategist Mitchell McCabe
  5. 5. Material contained in this presentation is an overview only. It should not be considered as a comprehensive statement on any matter nor relied upon as such. This presentation contains general information only and does not take into account your personal objectives, financial situation or needs and you should consider whether the information is appropriate to you before acting on it. Before acting on any information you should consider seeking advice from a financial adviser and your accountant before making any financial decision in relation to any matters discussed in this presentation. General advice disclaimer
  6. 6. We help investors build and manage their property portfolios
  7. 7. • Guided and mentored thousands of clients to plan and purchase property since 2006 • Helped clients build wealth through properties • Provides superior real estate information • Assisted clients reduce debt and retire early • Over 260,000 members Real Estate Investar
  8. 8. ASX:REV • Heavy investment in product • Public company governance • Strong and focused board; Simon Baker – Former CEO of REA Anthony Catalano – CEO of Domain
  9. 9. In partnership with…
  10. 10. Poll: Do you have a property strategy?
  11. 11. Poll: Does it involve Dual Living?
  12. 12. What is a dual income property? • Single property that can provide two incomes to an investor • Examples of dual income properties include: • Duplexes • Properties with Granny Flats • Dual-living
  13. 13. Advantages of dual income properties? • Maximise the potential of one block of land • Increased rental income • Generally the same price bracket as single dwelling properties • Capitalise on higher rates of depreciation • Potential to create equity uplift on completion & strata title • Reduced exposure to risk of vacancy if one tenant decides to leave you still have income • Can live in one and rent the other
  14. 14. Duplex Overview • Purpose built two dwellings on one property that often share a common central wall • Duplex can be on one title • Strata title opportunity to obtain 2 titles allowing each side of duplex to be sold individually • Potential to create equity after strata titling • Attached or detached
  15. 15. • Separate driveways for each dwelling • Each dwelling has its own garage • Good layouts keeping the bedrooms away from living spaces in other dwelling • Presents like two separate houses • For strong capital gains, buy where duplexes are the exception & not the norm • Configuration is important, side-by- side or corner positions are ideal. • Corner block allows for more desirable design Duplex example
  16. 16. Pros • Pricing – can be more affordable then a lot of houses in the same area • Additional income streams – live in one & rent the other OR rent both out • Sell one & hold the other – potentially owning it with no loan • Only one neighbour – unlike in an apartment complex • Low maintenance lifestyle • No body corporate fees Duplex – Pros & Cons Cons • Tenants – noisy or difficult tenants to deal with • Less privacy • Common wall can be a turn off • Smaller living space
  17. 17. Granny Flat Overview • Self-contained on the same block of land and are secondary to the main property • Granny flats have their own entrance, kitchen, bathroom, bedroom and laundry • Allows you to receive a 2nd income off your property for a smaller investment • Generally free standing • Must have a separate & unobstructed pedestrian access
  18. 18. • Perform better the closer you are to the city centre due to the higher density populations • $100,000 is often quoted as a starting point for the cost of building a granny flat • May turn a negatively geared property into a positive one • Good layouts ensure there are separate entrances so tenants don’t cross paths Granny Flat example
  19. 19. Pros • Pricing – cheaper investment than buying another stand alone property • Additional income stream – live in primary dwelling & rent out granny flat • Add value to property • Additional space for relatives or visiting friends • Easier to rent out for short term on sites such as AirBnB or Stayz Granny Flat – Pros & Cons Cons • Difficult tenants – you’ll have to deal with any issues • Less backyard space / privacy • No secure garage space or parking space for granny flat, often street parking • Can’t be on a separate title so can’t be sold separately • Different rules in different states – e.g. in Victoria a granny flat can only be rented to a person dependent on a resident of the main dwelling
  20. 20. Dual living Overview • A purpose built house with two separate dwellings • Have two separate entrances • Allows two separate leases • Strata titling not available • Primary dwelling larger then secondary dwelling
  21. 21. Dual living example • Two separate dwelling entrances minimises cross over with tenants • Each dwelling has its own garage • Main dwelling has all the bedrooms away from the common wall • Presents like a house with one entry at the front • As its not detached you can build on a smaller lot
  22. 22. Pros • Two incomes from one title • Higher rental yield • Low maintenance • No strata fees • No town planning or council charges • Cheaper build than Duplex • One set of council & water rates • Stamp duty on land only Dual Living – Pros & Cons Cons • Can’t be on a separate title so can’t be sold separately • Living close proximity to other tenant • Repairs – multiple kitchens & bathrooms to maintain • Potentially noisy for secondary unit bedroom
  23. 23. House • 4 bedroom, 2 bathroom • Median price - $862,500 (past 2 years) • Median Rental - $575 • Median gross yield – 3.47% Cashflow Example of House Vs Dual Living Dual Living • 3 bed & 1 bath + 1 bed & 1 bath (upstairs/downstairs configuration) • Asking $859,000 • Potential Rental - $900 per week • Potential Gross Yield – 5.45% Location: Lutwyche (6.2km from Brisbane CBD) Close to: Royal Brisbane & Women’s Hospital (3.2km) Windsor Train Station (1.8km)
  24. 24. House • Weekly Rent - $575 per wk • Council & Water Rates - $650 per qtr • Insurance - $1,000 per yr • Letting Fee - $575 • Management Fee – 7.70% • Repairs - $500 • Interest Rate – 4.3% • 20% Deposit Cashflow Example of House Vs Dual Living Dual Living • Weekly Rent - $900 per wk • Council & Water Rates - $650 per qtr • Insurance - $2,000 per yr • Letting Fee - $900 • Management Fee – 7.70% • Repairs - $1,000 • Interest Rate – 4.3% • 20% Deposit
  25. 25. House Cashflow Example of House Vs Dual Living Dual Living
  26. 26. Duplex Example Location: West Wallsend NSW (21km from Newcastle CBD) • Each Duplex consists of 3 bed, 2 bath & 1 car • Rental Appraisal: $440-$480 per week / per property • Sale Appraisal: $450,000 - $480,000 per property Appraisals provided by First National Newcastle City Total Package Price: $835,628
  27. 27. Duplex Cashflow Forecast
  28. 28. Duplex Cashflow Forecast
  29. 29. Duplex Example Location: Griffin QLD (24km from Brisbane CBD) Total Package Price: $704,930
  30. 30. Dual Living Example Location: Griffin QLD (24km from Brisbane CBD) • Dwelling A: 3 bed, 2 bath, 1 car • Dwelling B: 2 bed, 1 bath, 1 car • Rental Appraisal • Dwelling A: $395 per week • Dwelling B: $325 per week • Sale Appraisal • Dwelling A: $430,000 • Dwelling B: $305,000 Appraisals provided by Hashtag Rentals
  31. 31. Dual Living Cashflow Forecast
  32. 32. Dual Living Example Location: Logan Reserve QLD (37km from Brisbane CBD) Total Package Price: $562,203
  33. 33. Dual Living Example Location: Logan Reserve QLD (37km from Brisbane CBD) • Dwelling A: 4 bed, 2 bath, 1 car • Dwelling B: 2 bed, 1 bath, 1 car • Rental Appraisal • Dwelling A: $355-$375 per week • Dwelling B: $260-$285 per week Appraisals provided by Atlantic Real Estate Pty Ltd
  34. 34. Dual Living Cashflow Forecast
  35. 35. Dual Living Cashflow Forecast
  36. 36. Duplex Case Study Location: Rochedale QLD (20km from Brisbane CBD) • Package Price - $877,000 • Construction Completed – 27/04/14 • 3 bed, 2 bath, 1 car • Large 685m2 corner block • Appraised Value on Completion - $1,080,000 - $1,160,000
  37. 37. Poll: When are you planning to purchase next?
  38. 38. Introducing our Premium Membership To consider tax minimisation strategies, you really do need a specialised investment strategy. Real Estate Investar have property investment strategists who can assist you with this.
  39. 39. Premium Membership Advantages • Personalised Property Strategy is provided • 100% money back if you are unable to obtain finance pre- approval • Leverage our experience, professional ties and partners • Receive a $5,000 cash rebate on settlement for investment grade property opportunities • Exclusive access to off the market and pre- release stock • First access to stock before Free & Pro Members • Dedicated Portfolio Manager for on-going service
  40. 40. Premium Process
  41. 41. Poll: Would you like a free strategy session?
  42. 42. Questions? Thank you & good luck on your investing journey http://info.realestateinvestar.com.au/strategy-session

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