Dual-key Property – How much do you know about it?
Dual-key properties emergence to the market is
fairly new in Malaysia. However, they have existed for decades in places such
as Sweden, Japan and the United States.
A dual-key property is effectively one main
property, with a common front entrance door/hallway, and separated with 2
doors. Behind each door is a room fitted with its own bathroom, kitchen,
wardrobe and living room area, which is usually a studio. Of course, some developer will be able to play the right mix of types of property behind the dual keys unit like what it is shown below, a proper unit and a studio beside.
So here is a quick snap on what are the pros and cons of a dual key
investment
THE PROS AND OF A DUAL-KEY
INVESTMENT:
- Two income producing
properties on one title.
- Only 1 mortgage loan for 2
units of properties. For investor that invest in a dual key property as
their first house, they can still can purchase their 2nd
residential property with 90% loan financing instead of 70% loan financing
that because the dual key is considered as 1 mortgage loan.
- Easy management of rental if
you are staying beside.
- Each portion can be let out
separately, offering investors greater flexibility and maximum rental
return.
- Arguably, in an ageing
population that is also downsizing and urbanising, dual-key could be a
smart play to reach into the urban dwellers who require extra space for a
parent or elderly relative to live close-by (but still with some privacy
and separation).
- Another target rental
audience for these property types would be students. Most urban students
desire to live within walking distance to everything; their campus, CBD
centres, and transport hubs. Dual-key properties may be attractive to
students who seek a well located, low maintenance/low common area cleaning
property.
THE CONS AND OF A DUAL-KEY
INVESTMENT:
- The jury is still out on
whether this property type is high demand or not. The abovementioned
student and extended-family demographics may appreciate this property
type, but many others will not. Urban young professionals, for instance,
may simply prefer to pitch in for a three or four-bedroom share house
instead.
It is a great sign of the times that dual-key properties are on the uptake. With limited urban space and continually
high-demand to occupy it, this property type could be a good compromise between
human density and quality of life.
If you want to know more - Click here to register your interest for free.