Dual Living in Brisbane

Recently found this ads at the back of API mags.

Dual Living in Brisbane.
It is where a house on the outside, two rentals on the inside.
The yields up to 7%.

More from the advertiser:
The fundamentals of this exceptional dual income property type include:
- Positive cashflow from the very first monthly rental payment for most investors
- This means that for most investors, the property will be strongly positively geared
- Low outgoings - no strata fees, low council rates and water rates, which maximises yields & cashflows
- Even if you borrow 100% you will have more money in your pocket each week than you would have had
- Achievable rents are about 50% higher than for a house of similar value
- Located in high demand because they are just as affordable as the typical 4-bedroom investment house
- If one of the dwellings is vacant for any period, the other will still be producing rent, minimising risk.

Dual living properties from Property Queensland are available in high capital growth locations in Brisbane
Typical lots: All blocks are generous in area to accommodate these bigger dual living dwellings
Typical Dwellings: Comprising A: 3 bedrooms, 2 bathrooms & garage and B: 3 Bedrooms, bathroom & garage
Inclusions: Built to full turnkey specifications
Locations: All prime new land estates in Brisbane, close to major centres
Demographics: High population growth areas close to expanding employment areas
Infrastructures: Primary, high & private schools, shopping centres and recreational including golf courses.


Sound interesting.
Too good to be true or there is a catch with this?
Any comments/experience with this kind of thing?

Thanks.
 
rabidz,

Yields up to 7% includes all of the yields between 0% and 7%.

They put the word most in there so that when it doesn't live up to the ad they can say that you happened to fall into the minority of unsuccessful investors.
 
First, 7% is not strongly positive cash flow... Depends on lots of variables - rates, vacancy, repairs etc.

Second, Dual living on separate leases is still illegal in Brisbane.
 
"Up to", "about", "most".

You can drive a truck through the loopholes, not to mention that dual leases is not as easy in Brisbane as it appears to be interestate.
Marg
 
First, 7% is not strongly positive cash flow... Depends on lots of variables - rates, vacancy, repairs etc.

Second, Dual living on separate leases is still illegal in Brisbane.

Wow, illegal and they still advertise it?
Saw it everywhere, even in realestatetalk too..
 
Illegal is probably a strong word, but not allowed is still correct.

Most REAs will call it teenagers retreat, pool house... But barely ever see it get called granny flat in Brisbane.
 
If it is in an entire new estate, there is the possibility that it is a lawful use. The estate can be developed and zoned to allow for such a use. But if spread amongst existing property then no.
 
Isn't that what you do?

lol no I rent to max 5 people as that's the max allowed amount by BCC. And I keep it all on the one tenancy agreement.

Renting to over 5 people, aka 7 people isn't allowed and the realestate agent is inflating the actual possible rental yield. Which doesn't sit well with me.
 
I don't know how I missed that. But I'm pretty sure that's a lie because the place is zoned as a single unit dwelling. They are probably just certified with the fire department but not actually registered with fair trading.
 
Is it because you purchase it, at least 10 years ago?
Otherwise it's very2 good.

Within the last 18 months. One property is 400k and returns $910 per week and about $150 less after bills. The other was 320k and returns $750 and $150 less after bills.
 
Tim86, do you mind me asking what areas you are getting such returns?
Im on the look for a new location with 10% or better returns, but preferably not in remote mining locations...
 
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