Dual key condos units are apartments with two separate living space and have 2 or 3 bedrooms with an attached one bedroom apartment or studio unit. These units are found under executive condos and private condos. Some dual key flats come with 2 kitchens spaces while other come with a microwave/oven for simple cooking.
What makes duo key condos popular?
Passive income while enjoying the luxuries of a condo
Most people would love to experience the perks that come with private properties, be it an apartment or a condominium s, but usually shudder at the thought of large mortgage payments. With a due key, you can get rental income while you still get the luxuries that come with condo living.
More privacy that HDB flats
Some families, more so those with children, prefer a home with privacy (no sharing bathroom, kitchen, etc.) With a dual key unit, your family and the tenant will have personal access to bathroom and kitchen, granting you the much-needed privacy.
Restriction of the Singapore real estate cooling measures
Currently, if you buy a second property, there are several restrictions e.g. additional stamp duty and lower loan amount imposed on the owner. With a dual condo, you technically own one unit that acts as two properties since you can rent one out.
So who utilize the dual key condominiums?
Owner of the dual key unit, who mostly live in the main living space and rent out the studio/one bedroom.
Savvy singles who prefer to live in one bedder and rent out the larger space with 2 or 3 bedrooms for higher monthly rent income.
Entrepreneurs who work at home prefer to use the unit as an office or study room. Note that for this to happen, you need to follow the guideline as per URA for operating a home office.
So, is it wise to buy a dual key apartment?
Just like with other properties, your decision of whether to or not buy a dual key apartment is a subject to internal and external factors. Here are the basic concepts to consider when purchasing a dual key condominium in Singapore.
The proximity to amenities, private and social.
Does the apartment have cooking facilities? If not, is there any eateries nearby?
The distance to social amenities such as public transport, recreational facilities will affect your decision. For instance, if your apartment is isolated from these amenities, it will be difficult for other people to rent out space in the key unit.
Not all key dual condos are similar. Some have 1 bedroom in a loft style. If your unit is this style, survey the near key units and see is tenants are okay with this setup.
Lower quantum due to total PSF
When purchasing a private property, the larger the unit, the lower the price per square foot. From the definition, dual key units have more space and are therefore cheaper than purchasing 2 separate units.