Increase Rental Income Through Dual Occupancy
Following the Sydney property price boom, real estate investors are increasingly looking for positive cash flow investment properties to fill the void that rapid capital growth once occupied. One way property investors are increasing the returns they are receiving from their real estate investments is through producing two incomes from the one property asset. Generating two incomes from the one property might sound confusing but Gretchen Clarke from Vision Property & Finance says you needn’t worry. Gretchen has helped many investors increase their rental income through dual occupancy strategies.
Construction Loans: Increasing Rental Incomes Through Dual Occupancy.
When advising clients, Gretchen often directs them to a special type of property loan called a construction loan. “Construction loans are a type of loan offered by lenders for borrowers who are building – at least a dual occupancy dwelling but also other types of construction.”
“They’re different because the lender is lending money to a borrower who doesn’t have a completed house. Some lenders don’t offer this type of financing because they believe it is too risky compared to financing property acquisitions where there is an already-constructed dwelling.”
Anyone who has ever built a house can tell you about the unexpected problems that come up during construction. Property developers involved in large or small scale developments could also add their stories about the challenges they face completing jobs. Cost overruns, delays due to bad weather, and builders disappearing are just some of the extreme stories you might hear. So, it’s understandable some lenders are wary about competing in this specialised segment of the property financing market.
Construction Success Stories
Yet, for every scary story about the extraordinary challenges some experience, there are dozens of success stories where there are few problems in the building process and the end result is a positive cash flow success story for the investor.
Gretchen advises people through the process and has been rewarded by seeing many of her clients build stunning portfolios, generating fantastic positive cash flow income, and setting them up for a very bright future.
“The application process can be a little more involved compared to other types of investor loans; however, we’ve been seeing fantastic results for clients over the last few years in particular.”
Gretchen says that clients are beginning to see excellent results employing this strategy in South East Queensland more recently, after almost a decade of seeing the fruits of using dual occupancy construction strategies in Sydney and NSW.
“Dual occupancy is a great way to develop positive cash flow for real estate investors. It can involve building on an existing building to make two homes out of one house. However, more often it is as easy as building a granny flat. We’ve seen investors have success from that too!”
If you’re looking to increase your rental income through dual occupancy, or are an investor looking for a creative ‘next level’ solution to get more from your existing property portfolio, give Vision Property & Finance a call on 1800 004 663 or live chat with us!