Netrealty

About Us

The world is a changing and so is the world of investment property. The way people live and the groups of people who require rental property range from families through to individuals living alone and all those sub groups in between. Airbnb has also added another segment to the investment property market.

Dual Key Homes are a relatively new concept to New Zealand however they have been around in other parts of the world for many years. Dual Key Homes are simply two homes or two dwelling houses on one title. That could be two one bedroom flats or a three bedroom home and a studio they are on one title and can only be sold or purchased together as one property. They are usually joined together by a common firewall but that does not necessarily have to be the case. They can both be free standing. They should not be confused with duplex homes that are joined via a common fire wall but can be sold separately because they are on two separate titles.

Dual Key Homes work well as purpose built Home and Incomes where the owner lives in one part of the home and tenants live in the other. Generally speaking the grounds are going to be better maintained if the owner lives on the property.

In Australia Dual Key Homes are becoming more common and have been credited with providing investors with a higher yield than single key homes by about 20%. In real terms that is a 6% yield versus a 5% yield which could be the difference between a positive cash flow and a negative cash flow with mortgage interest rates currently sitting at approximately 4.5%.

We have taken the concept of Dual Key Homes and combined it with targeting two segments of the residential rental market who are willing and able to pay more than other segments for quality accommodation. The first segment we have identified is the young professional adult (25 to 35 year olds) with no dependants who have a high level of disposable income. In a flatting situation this group prefer only two or three flatmates, a large spacious bedroom each and would prefer an ensuite or to share a bathroom with only one other person. A central location with off street parking is also preferable.

The other segment is couples or individuals with no dependants who lead busy lives and only require a self-contained studio. The Airbnb market could also be a contender for self-contained studios however the return on investment (ROI) is more difficult to quantify and is a less passive income.

It should be noted that the studios do not have a full kitchen stove or oven but will have a microwave and plug in hot plates designed to work from a regular power point.

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Home & Income Investment Property

The residential property market can easily be segmented and organisations like Airbnb have made it possible for many home owners in NZ and around the world to earn a substantial income from the very home they live in. One does not necessarily have to live in a tourist destination to tap into the Airbnb market. This Home and Income segment of the residential market is just one segment these Dual Key Homes can accommodate ... More