Income security is a vital part of every property investment. This property, offering two tenancies in separate flats, offers a dual income stream and halves the risk of having no income from your investment.
“Vacant rental properties are a problem for investors who must cover the ongoing costs of mortgage repayment, rates, water bills and insurances,” said Steve Richardson, Investor Adviser at Elders Brown and Banks Real Estate.
“With a dual income stream the gross amount of rental income is increased compared to a single large residence, with this property generating $530/week,” he said.
“The owner benefits from being able to maintain a share of rental income, even if one of the flats is vacant between tenants.”
This property offers a three bedroom flat and a two bedroom flat with separate services, driveways and access.
Both residences have been extensively renovated with new kitchens, bathrooms, carpets and painting throughout.
Located in close proximity to schools, transport and the Glenorchy shopping precinct, the properties have broad and strong tenant appeal.
“This property would work well for a portfolio investor, too,” said Tony Dion, Mortgage Broker with Elders Home Loans Hobart.
“Most lenders will allow investors to use 80% of the gross rental income towards servicing the mortgage repayments. The strong rental income on offer allows this property to service its own mortgage, so there’s no impact on the investors ability to acquire additional properties,” he said.
The property is situated on a 1029m2 level block. There is further scope for development and the possible addition of another residence, subject to council approval.
“This property is positively geared and offers a strong, secure income stream from its dual tenancies. The cream on the cake is the potential to develop in the future to achieve even stronger capital gains,” said Steve Richardson.
A unique ‘Investor Adviser’ analysis for this property is available on request.