Multi family 'Rent Maximizer' 4x2 advice

[4WD]

Hey guys,

I stumbled across Investor Assist some time ago, who are the investment side of the Alcock Brown Neaves home builders. I got in touch purely because it has the above name attached to it.

One of the strategies they offer is building a 4x2 home that is split down the middle, with two of everything, creating what is essentially 2 small 2 x1's.

They call this the 'Rent Maximizer' for obvious reasons, and recommend it because its considerably positively geared once its built. Instead of getting $500 per week in rent, you get (or so they say) 2 x $350 per week.

They build houses, and can do the rental management once it is completed.

However, I can't get over the negatives:
- Shared entrance, driveway, backyard etc
- Difficulty managing the water/electricity/gas usage
- Limited number of people who would want to purchase it
- Unattractive to tenants (in my opinion) and thus harder to find and get a decent rent

Does anyone have any experience with doing something like this? So far I am not convinced

Cheers

 

[thatbum]

Is this in WA? Is it compliant with planning laws?

 

[Scott No Mates]

Do you have any options to have the services separately metered rather than one meter?

 

[4WD]

Yep, in WA. I was told it was compliant with planning laws. I don't know whether it actually is or not though.

They didn't give us the option of separate meters; I doubt that would be an option

Cheers

 

[SOP]

Ancillary dwelling possibly? How big are each units?

 

[westminster]

Yep, in WA. I was told it was compliant with planning laws. I don't know whether it actually is or not though.

They didn't give us the option of separate meters; I doubt that would be an option

Cheers

I'd really want to see a plan of one to see how it works and how it gets through council.
An interesting concept. I'd want it more separate myself, to ensure safety (ie firewall between), meters, garden area etc

 

[4WD]

I'd prefer it to be separate too. The house is small - on a 375 square meter block, R25.

They have pointed out if you had an issue getting tenants you could knock part of the middle wall down and convert it into a normal 4x2.

This is true, but it wouldn't be your normal 4x2 as it doesn't have a study, and things aren't in their normal locations

I have the plan at home, but basically if you imagine a fairly standard house on a narrow block, they have built onto it a second home which is flipped around the other way.

Both use the same door to enter, just it splits at the second door

Thanks

 

[SOP]

I would suggest seeking independant planning advice relating to leasing out each unit separetly before going any further.

 

[Jamie_]

I have a friend who is currently doing this up in Kinross, at the moment...4x2 split down the middle, with both accessing the same laundry.. Lockable door on either side. Now he's done it because he intends to let his mother live in one side and he in the other, and then eventually rent each of them out.

 

[D.T.]

On a r25 375m, you could do better than a dodgy 4x2 imo

 

[westminster]

I'd rather build two separate dwellings on two titles. I think a quasi structure like that is just asking for trouble - would any insurer insure it? What happens when there is a fire in one half that goes to the other half?

I'd much prefer to do 2 x single bedroom dwellings. At least these can be rented separately, comply with all codes, insurable, popular, can borrow against and still get 2 rents.