Positive Cashflow - Dual Key Apartments
- Thread starter JPLL
- Start date
Haven't heard of dual key? Is that the same as renting rooms out separately?
Do you own one yourself?
Do you own one yourself?
I don't even know anything about them and I can foresee many issues. Probably many of the same issues as granny flat developments - like poor LVRs and capital growth opportunity cost issues.
Add in a whole lot more potential issues because of the strata titling... What happens if strata by-laws start prohibiting separate leasing?
Add in a whole lot more potential issues because of the strata titling... What happens if strata by-laws start prohibiting separate leasing?
I've never heard of them either. So I fond this site:
http://luxapartments.com.au/dual-key-apartments/
"Dual Key Apartments is a combination of one bed apartment and a studio with great privacy for each part."
Seems to be the apartment-equivilent of a semi-detached dual occ on a single title.
Ditto the concern with strata, and council as well. Probably ok for normal residency tenants (longer than 3 months) but I bet that they will appeal to the AirBnB host wannabe crowd.
http://luxapartments.com.au/dual-key-apartments/
"Dual Key Apartments is a combination of one bed apartment and a studio with great privacy for each part."
Seems to be the apartment-equivilent of a semi-detached dual occ on a single title.
Ditto the concern with strata, and council as well. Probably ok for normal residency tenants (longer than 3 months) but I bet that they will appeal to the AirBnB host wannabe crowd.
Here's an official definition:
http://www.hpw.qld.gov.au/sitecollectiondocuments/newsflash-327-guideline.pdf
From page 8 of above:
Example of dual key accommodation
Dual key accommodation typically consists of a small common entry lobby with
two doors leading off it, each separately keyed and providing access to an
accommodation unit. One unit would typically be self-contained, including
laundry and food preparation/cooking facilities, while the other unit generally
would not be.
The classification of each unit would depend on their intended use. The
self-contained unit would be class 1a or 2 if it was used as a dwelling.
However, if it was used as a holiday or business apartment, hotel, motel or
other similar short-term or transient accommodation, it would be class 3.
Alternatively, it could be dual classified, such as class 2 and 3, provided that it
complies with all relevant requirements for both classifications. This would help
to maximise the flexibility of the unit?s use.
The non-self-contained unit would be class 3 if it was used as a holiday or
business apartment, hotel, motel or other similar short-term or transient
accommodation. However, if it was used as a dwelling and combined with the
self-contained unit to form a single dwelling unit, it could be class 1a or 2 as
appropriate.
http://www.hpw.qld.gov.au/sitecollectiondocuments/newsflash-327-guideline.pdf
From page 8 of above:
Example of dual key accommodation
Dual key accommodation typically consists of a small common entry lobby with
two doors leading off it, each separately keyed and providing access to an
accommodation unit. One unit would typically be self-contained, including
laundry and food preparation/cooking facilities, while the other unit generally
would not be.
The classification of each unit would depend on their intended use. The
self-contained unit would be class 1a or 2 if it was used as a dwelling.
However, if it was used as a holiday or business apartment, hotel, motel or
other similar short-term or transient accommodation, it would be class 3.
Alternatively, it could be dual classified, such as class 2 and 3, provided that it
complies with all relevant requirements for both classifications. This would help
to maximise the flexibility of the unit?s use.
The non-self-contained unit would be class 3 if it was used as a holiday or
business apartment, hotel, motel or other similar short-term or transient
accommodation. However, if it was used as a dwelling and combined with the
self-contained unit to form a single dwelling unit, it could be class 1a or 2 as
appropriate.
So like a micro unit talked about in another post
2 bedder split into 2 separate units
2 bedder split into 2 separate units
Stayed in a dual key apartment whilst in Prague earlier in the year.. Seems to be very common over in Europe..
Like your typical apartment blocks (cheaper rooms i'd assume), Two Keys for the front door, inside theres generally a small room our example was probably 6x6m room...
Inside is two doors, seperate locks/keys...Was only a 1bed 1bath + kitchen.. 3 rooms in total.
But as above, the whole apartment would have been 2 b 2 bathroom 2 kitchens 2 living rooms. Shower/Toilet separate also.
Like your typical apartment blocks (cheaper rooms i'd assume), Two Keys for the front door, inside theres generally a small room our example was probably 6x6m room...
Inside is two doors, seperate locks/keys...Was only a 1bed 1bath + kitchen.. 3 rooms in total.
But as above, the whole apartment would have been 2 b 2 bathroom 2 kitchens 2 living rooms. Shower/Toilet separate also.
AS said before my PPOR is a dual key. Plus is lots of flexibility: initially before moving from UK I had both halves rented out, then I occupied both with the bedroom of the flat half being used as dining/guest room and now I live in the flat and rent out the studio. Because I'm older and want my own space I wouldn't be up for owning a conventional 2+2 flat and renting out a room and my studio tenant is happy to pay a premium for having their own private space. Someone else I know in this building rents out the flat and has the studio as their city pad, proper family home at Mornington.
Using both halves, it's a layout that works well for some occupancies - e.g. aged parent or older teenager/young adult in the studio - but would not be suitable for a family with younger child[ren].
From a rental pov, a dual key in this building would get around $460+$320 on a buy price in the 600s. BC is around $8K though.
Using both halves, it's a layout that works well for some occupancies - e.g. aged parent or older teenager/young adult in the studio - but would not be suitable for a family with younger child[ren].
From a rental pov, a dual key in this building would get around $460+$320 on a buy price in the 600s. BC is around $8K though.
Tony
Thanks for the info mate.
The BC fees are horrendous thats $154 per week. Dual key is very popular in Brisbane and honestly its a great product to make one's asset positively geared.
"Dual key is very popular in Brisbane and honestly its a great product to make one's asset positively geared."
Would that be those houses where the garage under the house has been converted?
Can this be done on any property?
Would that be those houses where the garage under the house has been converted?
Can this be done on any property?
yes high sets are plentiful in Qld and if you have full height 2.4m underneath even better, as well new apartments and detached dwellings.
as far as i know brisbane city council is less favourable to dual key setups but the other councils have no problems.
Even in Perth where I am first time i saw a new home building advert on page 2 in the newspaper of a full page display of a dual key home, a 3x2x2 with a 1x1 under 1 roof with separate entry for each 'zone'.
It's getting popular i think as it offers flexibility for multi generational living, opportunities for earning a small rental by letting out the 1x1 if you're living in the main part etc
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We stayed in a dual key serviced apt in chermside which worked really well, that was over 5 years ago.
Have also seen a block of 6, 3 bed units built inner city and rented out. Interesting set up.
Main door lead off to a 2 bed and a 1 bedder. Laundry appears to be shared and is in common entryway.
It is a clever idea to max. Land usage as I suspect car spaces were an issue in DA.
Downside is they would likely have to be sold as a 3 bed but if it were me personally, if I was looking at it as a PPOR, as opposed to IP, I would opt for a 3 bed townhouse over that any day as asking price would be around the same in this area.
Have also seen a block of 6, 3 bed units built inner city and rented out. Interesting set up.
Main door lead off to a 2 bed and a 1 bedder. Laundry appears to be shared and is in common entryway.
It is a clever idea to max. Land usage as I suspect car spaces were an issue in DA.
Downside is they would likely have to be sold as a 3 bed but if it were me personally, if I was looking at it as a PPOR, as opposed to IP, I would opt for a 3 bed townhouse over that any day as asking price would be around the same in this area.
Trying to push some through Hurstville council right now in Sydney. Its like pulling teeth. To give you an idea when I spoke with the duty planner initially he said he did not know what a duel key was as they had no DCP controls over it.
Its like educating children, if its not in their DCP rules council officers seriously have a brain melt down.
Its like educating children, if its not in their DCP rules council officers seriously have a brain melt down.
