Are duplex, triplex and dual key properties a good investment?

If you live in an older suburb like I do on the Sunshine Coast, you probably have seen many new “multi dwelling” properties popping up. Lots of knockdowns are being replaced with a duplex, triplex or a dual-key. All of these types of property in Queensland and across Australia are considered good investments due to the yield and or profits from sale of part of the property, but like any property purchase, it of course is dependent on the location and condition of the property.

Multi dwelling properties provide an opportunity for multiple streams of income, as well as potential for capital growth over time. It is important to do thorough research before investing in any type of property and also consider which configuration will work for your needs, budget and long-term investment.

Unsure of the difference between a duplex, triplex of a dual-key property? Below is a quick breakdown.

Duplex: This kind of property consists of two separate dwellings that are connected by a common fire wall. The two dwellings can either be attached or detached but are on two titles and can be sold off as two separate homes. Typically, one dwelling is used as a residence and the other is rented out as an investment. The land size on which these can be build can vary from different councils and zoning. Some zones these may be possible if it is submitted to council as code assessable.

Triplex: A triplex is a property that consists of three separate dwellings that are connected by a common fire wall. Like a duplex, the three dwellings can either be attached or detached but are on three titles and can be sold off as three separate homes. Typically, one dwelling is used as a residence and the other two are rented out as investments. Like a duplex, the land size on which a triplex can be build can vary from different councils and zoning.

Dual-key: A dual-key property is more commonly known as a house with a granny flat. Modern day versions of dual-keys resemble a type of duplex with a separate dwelling, attached or detached but currently most councils keep these properties on one title, which means that the two dwellings can’t be sold off as two properties but need to be sold all together. This type of property can provide a great investment opportunity because it can be used as separate residential units for rental income or as one large combined property for a single family i.e. a separate unit for grandparents or extended family. Like a duplex or a triplex, the land size, council and zoning will depict if you are allowed to build or create a dual-key property.

If you would like to explore "multi dwelling" property options further, please get in touch today. Baxter & Mason Property Buyers Agent Sunshine Coast can help you with purchasing your next investment, first home or a new home.