House & Land

House and land investments are oriented toward capital growth, especially if the area experiences high population growth. Rental Income is usually lower compared to other dwelling types, and in some locations can involve negative gearing. Australians enjoy this type of dwelling - it is the Australian dream to own your own home. A typical house and land profile is below:

Price

Growth

Rental Yield

Tenant Appeal

Valuation Accuracy

$450,000+

Higher

4 to 7%

High

Mid to High

Townhouse

Townhouses offer a good mix between cash flow and capital growth. They have a land component (depending on the State) and often can be neutral/positively geared. They are a great entry point for many first home buyers or investors. Buying a townhouse in a region with upcoming infrastructure, transport, commercial and employment zones will expose your portfolio to capital growth at a much lower entry cost.

Price

Growth

Rental Yield

Tenant Appeal

Valuation Accuracy

$350,000+

Mid to High

5 to 7%

High

Mid to High

Dual Occupancy

'Dual Occupancy' will have a different meaning depending on which state you are investing in and which council you are dealing with - but leave all the planning to us. For the sake of this description a dual occupancy is the same as a duplex, but without the subdivision. It includes two residences on one title. You can rent them out separately but they must be sold together (unless you choose to subdivide them into a duplex). In the right location you can earn a substantial rental premium or resale value. However seeing these dwellings are uncommon and there are not many comparative sales in the market, valuations can be quite inaccurate.

Price

Growth

Rental Yield

Tenant Appeal

Valuation Accuracy

$500,000+

Mid

5 to 8%

High

Low

Duplex

The building so nice they built it twice! Duplexes are two houses sharing a common wall built next to each other and then subdivided. Duplexes are cheaper to build than 2 separate houses which is where the value in these investments is realised. Duplexes can be beneficial in a cashflow positive strategy, especially in regional centres. If they are executed correctly there is also the benefit of substantial capital gains.

Price

Growth

Rental Yield

Tenant Appeal

Valuation Accuracy

$550,000+

Mid

5 to 8%

Mid

Low to Mid

Quadplex

The building so nice they built it twice, twice! Quadplexes are four houses sharing a common wall built next to each other and then subdivided. Quadplexes are cheaper to build than 4 separate houses which is where the value in these investments is realised. Duplexes can be beneficial in a cashflow positive strategy, especially in regional centres. If they are executed correctly there is also the benefit of substantial capital gains.

Price

Growth

Rental Yield

Tenant Appeal

Valuation Accuracy

$800,000+

Mid

6 to 10%

Mid

Low to Mid

Secondary Dwellings

Just like a 'Dual Occupancy', 'Auxiliary Units' and 'Secondary Dwellings' will have a different meaning depending on which state you are investing in and which council you are dealing with. For the sake of this description a house with a connected ancillary dwelling is known as a 'Secondary Dwelling'. It is designed to be tenanted by one family group, with the ancillary dwelling usually occupied by elderly family members or young adults who need some extra privacy. Cultural preferences can be an important determinant as to whether this type of investment is highly desirable in the marketplace. In the right location you can earn a substantial rental premium or resale value. However seeing these dwellings are uncommon and there are not many comparative sales in the market, valuations can be quite inaccurate.

Price

Growth

Rental Yield

Tenant Appeal

Valuation Accuracy

$1,000,000+

Low

6-8%

Low to Mid

Low

CONTACT

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P: 03 9005 5820

E: invest@equitygame.com.au

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