As property prices continue to rise, Dual Occupancy homes are becoming increasingly popular with owner-occupiers and investors due to their affordability and the flexibility they offer.
These can take on many forms, such as duplexes, duplex-style houses, dual-key units and houses with a detached granny flat in the back yard. Regardless of the actual design, they all provide the ability for two families to share the same property, yet live completely independently of each other.
For example, the floor plan below shows a 5 bedroom house with a fire and sound rated wall dividing the home in two. This is similar to a duplex – one side has 3 beds, 2 baths and a single garage and the other has 2 beds, 1 bath and a single garage.
Each side has its own entry and a separate kitchen, dining/living area and laundry. They also enjoy private alfresco areas and fenced back yards. There are two power meters, water meters, hot water systems, clothes lines and TV antennas.
This type of property has a SINGLE FREEHOLD TITLE, so there are NO Body Corporate Fees and only ONE Council Rates to pay.
From the street Dual-Occs look just like traditional family homes. However, clever internal designs allow two families to share the same property, yet live completely independently of each other.
Dual Occupancy homes provide owners with enormous flexibility to meet their changing lifestyle needs. Here’s a few ideas:
- Owner-Occupiers – live in one side and rent the other… your tenant helps pay the mortgage for you!
- Teenage Retreat or Granny Flat – if the kids can’t afford to move out on their own, or if grandma or grandpa need looking after, this could be the perfect solution.
- Investors – rent both sides out to maximise your yields. These properties will usually be Cashflow Positive and return $80 – $150 per week after all costs including mortgage payments, rates, management fees and insurance.
WARNING: Dual Occupancy homes can be valuable assets, however you need to be very careful about where you buy them. While most councils allow these types of properties to be built, some will only permit them to be occupied by family members. This means you can be fined if you breach this rule. Even worse, if your non-related tenant slipped in the shower and cracked his head open on the tiles, your insurance company will not cover you if the property was being used for an illegal purpose. Your tenant could then sue you personally and all of your assets could be at risk.
To avoid these pitfalls, we work closely with award-winning builders who specialise in building council approved Dual Occupancy homes in Ipswich/Springfield, Toowoomba, Moreton Bay, Logan City, Gold Coast and the Sunshine Coast.
Due to the rarity of these properties, they usually sell extremely quickly. Recently, four of these became available in a new housing estate and they all sold in just 24 hours! For this reason, priority will be given to buyers who already have their finance approved (let us know if you would like assistance with this).
The purchase involves two contracts:
- Land Contract – $1,000 initial deposit, with settlement in 30-45 days.
- HIA Building Contract – 5% deposit, plus 5 progress payments during construction (approximately 4-5 months to complete).
You only pay stamp duty on the land… a saving of at least $10,000!
Depending on the location, land size and number of bedrooms and bathrooms, prices typically range from $450,000 to $575,000.
Investors with bigger budgets could even consider a triplex or a quadplex… imagine the huge rental returns you could generate from three or four groups of tenants! You’d also have very low overheads (no body corporate fees and only one council rates).
Intrigued by the possibilities? Please contact us anytime if you’d like to find out more about these truly unique properties.
NOTE: Returns will vary depending on your personal circumstances. Always seek independent financial, legal and taxation advice before making any investment decision.
© Brian White – This article courtesy of https://www.brisbaneunitsales.com.au The article may be reproduced provided the above courtesy notice and author name remain intact.