Dual Occs. Pros, cons?

[Sonamic]

I'm looking at doing a dual occ in Ipswich. Laws have changed and now the 2nd dwelling or Auxiliary Unit, is only allowed to have 50sqm of living area, including a single bedroom and bathroom only. This excludes garage and alfresco areas. Previously allowed a 3 bed 2 bath house and a 2 bed 2 bath Auxiliary.

This is coming in at 450k built with a rental appraisal of $600 a week combined. Good established location (for Ipswich) close to schools, transport and shops. Has anyone done one of these in this area? Yes you could buy a splitter block in Logan and potentially do 2 side by side Dual Occs, but I'm not at that level, yet.

So, side by side Dual Occupancy. New build. Decent return. Max Depreciation. Single Title. Cashflow solution to get a leg up into more CG property, or non Strata Title-able double headache?

 

[thatbum]

Yield doesn't seem that great. Surely there's better out there?

 

[Sonamic]

Yield doesn't seem that great. Surely there's better out there?

Possibly. Haggled Builder down to 435k. That's a shade over 7%. Similar setups of lesser quality inclusions and location are anywhere between 465-495k.

 

[thatbum]

Possibly. Haggled Builder down to 435k. That's a shade over 7%. Similar setups of lesser quality inclusions and location are anywhere between 465-495k.

Shrug, I just know that if I'm doing granny flats, I'd want more like 10% yield on the whole project. Anything else and I wouldn't be wanting to tie up so much equity on (since you can't subdivide).

I guess its relative to what else is in the area though.