In 2005 in conjunction with Ken Groom, a builder in Fernvale Qld. We designed and built what, at that time, were the first of the modern day dual income properties.
Our purpose was to offer them as NRAS approved dwellings fitted out according to the Australian Standard for disabled occupants AS4299. Disabled tenants who have occupied them are full of praise for the convenience offered by the disabled fit out.
Able bodied tenants love the wider hallways and doorways as well as the large bathroom and shower recess. Bench bars are only installed when needed.
Since then thousands of these have been built across the east coast of Australia, but sadly, few if any, have included the AS4299 features. It is a pity that some of our builders have not adopted AS4299 in their designs as our population is rapidly ageing and these facilities will be required by many.
I advise clients to think about this when buying an investment or a property in which they intend to live in at retirement.
Apart from the features, dual income properties provide higher than average rental yield which is an important issue for most investors. That is the main reason they are so popular.
When we worked on our model we always sought lots of 700-800m2. Nowadays I note them on lots under 300m2. In my opinion this is capitalizing on the rental yields with no consideration for the occupants and doubtful value upon resale.
We will not go under 600m2 which really limits availability. If the client insists, then OK – we have warned them.
As it turns out two of the biggest councils in Brisbane are placing a minimum size of 600m2 for dual income properties. The trouble is that soon there will be no 600m2 lots and it will be goodbye to dual income in those areas.
We now have a design which to all intents and purposes is a large 250 m2 residence with great lawns and landscaped gardens on a 600m2 lot with 3/2/1 and 2/2/1, with AS4299 at investor request. This model can be sold any day due to the ease of conversion into a five bedroom home if that is what the market in that area seeks. They are located in Newcastle, The Hunter and Lake Macquarie
Our clients all develop a plan for their property portfolio to become an important contribution to a comfortable retirement. Some will eventually live in the property after a do over, they keep the smaller unit as an income producer, others convert to a larger residence and the remainder will sell. Depending upon the location, it may be possible to subdivide and title each unit, producing equity uplift.
Don Duncan F.A.I.M.
Don is the Principal Consultant at Meredon Consulting, with over forty years experience in developing successful residential property investment strategies, and extensive experience in the financial sector, Don is uniquely qualified to provide you with the best property investment advice available. He is supported by experienced property investment consultants in both Brisbane and Sydney. Don is a Fellow of the Australian Institute of Management, and a qualified Trainer of Trainers. In addition to this Don has also been an active member in the community, he was a member of Rotary International and Past President Toastmasters Territorial Council of Australia.