A Brisbane-based project marketing company has released an innovative new housing product, designed specifically to allow investors to draw four income streams off a single residential property.
The homes, which appear as a standard house from the street, consist of one three-bedroom, two-bathroom family residence plus a separate one-bedroom, one-bathroom unit.
Property Direct, which specialises in townhouse and apartment projects, spent two years working with local councils, banks, renewable energy companies, architects and builders to develop the ground-breaking designs.
In addition to offering investors the opportunity to draw two rents from the one house, the PD Smart Homes include innovative solar systems which allow landlords to sell power back to the grid, and to their tenants at a discounted rate.
Property Direct managing director David Beard said his team had been frustrated by the lack of innovation in the property market.
“We believe the PD Smart Homes will set a new benchmark for property investors,” he said.
“Our product offers low entry costs, low holding costs, high year-round yields with potentially superior long-term capital gains and little, if any, chance of market over-supply.”
The homes have been designed to be cash-flow positive with high rental returns, depreciation and tax savings and no body corporate fees.
“Traditional residential real estate investments offer buyers high-entry costs within a low capital-gain environment and rely on negative gearing or, at best, neutral gearing,” Mr Beard said.
“Investors who have wanted high-cash-flow property looked at commercial sites or risky property sectors such as mining towns.
“By examining Australia’s forecast population growth figures, particularly in South East Queensland, we saw there was an opportunity to produce a ground-breaking and innovative form of home which does not rely on negative-gearing tax laws.
“This new form of housing is community relevant, very contemporary and, assisted by the power of the sun, the next generation in sustainable living.”
A range of floor plans are available, with packages starting at $490,000 for a turn-key build across a number of high-growth regions in Greater Brisbane.
“Population growth in the outer ring of Brisbane is expected to flourish in the next 20 years,” Mr Beard said.
“These are the areas to aim for when considering a high-growth, high-return investment property. Locations that provide easy access to employment hubs and artillery roads are ideal, and this is exactly what the outer ring of Brisbane will provide over the coming years.”
Mr Beard said weekly income from a $490,000 PD Smart Home was about $650, with a $550,000 Smart Home producing about $680, and a $650,000 house bringing in about $880.
Tenants benefit from and discounted electricity supplies and no body-corporate fees.
“I have been in the property business since 1984 and in the past 20 years Property Direct has sold more than 5700 apartments and townhomes,” Mr Beard said.
“During this time I have never seen such strong yields rising year after year.”
“On a $2000 deposit and using their own home as security, a family using the surplus income from just one $490,000 Smart Home investment property dropped the 30-year principal and interest mortgage on their own $450,000 home down to just 18.6 years.
“That’s slashing an incredible 11.4 years off a family’s mortgage with no extra work at all.”
Mr Beard said the Smart Homes also offered savings in stamp duty and council rates – which were calculated on the one block, despite it having two separate homes.
“Our Smart Homes have just been released and are exclusive to Property Direct,” he said.
“The packages are full turn-key and built by prominent Queensland home builders in new estates 35 to 50 minutes south and west of Brisbane, and on the Sunshine Coast.”