Double Income Rentals
Updated: Jul 25, 2018
Halve the Price. Double the Return.
A double income rental is just like having a house and building a granny flat. But on a much larger scale. We design and build these homes with our annexed unit strategy in mind. The house and annexed unit can be attached, detached or built from the ground up to be incorporated into the same design.
For most investors, the aim is to mitigate risk. We found that one of the safest investments is in housing and property. As the old saying goes, 'It's as safe as houses'.
Typically for a rental home, holding costs are simply too high, and the rental return cannot justify the costs. This means that most investors have to hold onto negatively geared properties.
There is a way, however, to hold a property at either neutral or positive gearing. Not only does this increase your capital, but your overall income, making this strategy extremely desirable to shrewd investors looking to enter the property market.
Our strategy involves split level tenancies, designed from the ground up to maximise returns and the comfort of your tenants. The images on this page are of our very own split tenancy in Cornubia, which is renting for $850 a week. After all our expenses such as interest on the mortgage, house insurance, rates, water and agents management fee, the property is positively geared over $150 a week. Now, you might be thinking $150 a week isn't a fantastic positively geared return...
Our clients in Logan Central are reaping $700/week rents on properties that cost $340,000. That is 10.7% return, positively geared and fully built, rented and tenanted.
How it Works
When you buy a house you usually have to pay stamp duty on the whole value. The investment properties we are offering are upmarket rentals. The one on display at the moment is renting for $850/week.
A home such as this will cost $399,000 plus the land. That means stamp duty costs will be high. However with our strategy, we find the block of land and negotiate a price on your behalf. As custom builders we know exactly what to look for in a block and how it can work with our designs, to the point where we sit down with you, and incorporate your design ideas into the overall design, advising you on cost-effectiveness the whole way through.
Doing things this way is cheaper for you, because you do not have to pay stamp duty on a fully constructed home. Instead, the stamp duty is simply paid on the land, and a building contract is entered into. This cuts down costs dramatically for our clients, so that you can make higher returns.
We then work with you throughout the building process, which you can find out more about here. As we work with you, you can see the design in 3D, and get to know your investment, exactly how much it will cost and how long it will take to construct.
We can also help you with financing and managing your tenants, by partnering with top mortgage brokers and property managers in the area.
Peace of Mind
When we speak to our clients, they ask us, 'How do you know you can get these returns?'
The answer is simple. Because we are. These photos are of our property in Cornubia that is fully tenanted. We aren't just salesman, we are doing what we say right now, and reaping the rewards.
When building a split level rental with Mark Wilson Design and Build, you can rest assured, because we have been there and done that. So we can foresee issues in the design or construction that other builders probably wouldn't think about. Not only that, but our products come with a start to finish satisfaction guarantee, a fair and simple contract provided by Master Builders Australia, and 6 year construction warranty, enforced by the Building Services Authority.
Our Quality Product
Our homes are built to last, and to impress.
This property has porcelain tiles throughout, Miele appliances in the kitchen, hardwood trimming inside and out with powder coated balustrade. Beautiful painting and attention to detail.
We have recessed feature walls for entertainment units and large sliders. Both upstairs and downstairs have large tiled decks and luxury bathrooms with feature tiles, semi-frameless showers and security screens.