As property prices continue to rise, Dual Occupancy homes are becoming increasingly popular with owner-occupiers and investors due to their affordability and the incredible 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 dwelling has 3 beds, 2 baths and a single garage and the other has 2 beds, 1 bath and a single garage.
Each home 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 dwelling and rent the other… your tenant will pay up to 60% of the mortgage payments for you!
- Friends & Siblings – pool your resources and buy together instead of wasting tens of thousands of dollars on rent over the next 5 – 10 years.
- 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 dwellings out to maximise your yields. These properties will usually be Cashflow Positive and return $100 – $200 per week after all costs including mortgage payments, rates, management fees and insurance.
- Retirees – supplement your Pension or Super Fund income by living in one dwelling and renting the other.
First Home Buyers – you may qualify for the QLD First Home Owners’ Grant and the First Home Transfer Duty Concession worth up to $23,750!
Our award-winning builders specialise in creating Dual-Occs in Ipswich/Springfield, Toowoomba, Moreton Bay, Logan City, Gold Coast and the Sunshine Coast.
Depending on the location, land size and number of bedrooms and bathrooms, prices typically range from $475,000 to $600,000. Similar homes in Melbourne or Sydney would cost at least $100,000 – $300,000 more!
On select Dual Occupancy homes we can also offer a unique 10 YEAR LEASE BACK GUARANTEE!!
Here’s an overview of the benefits:
- Complete peace-of-mind as your rent is Guaranteed for the full 10 years, including any periods of vacancy or if the tenant defaults on their lease agreement.
- The property is managed by the building company’s own Property Management team. There’s no one better to care for your property than the people who built it!
- The builder is legally your tenant under the lease agreement and they sub-lease the home to the tenants who will actually live there.
- ‘One-Off’ 1 week letting fee at the commencement of the lease. Normally you’d pay a 1 week letting fee every year when tenants change, so this could save you thousands!
- The lease starts at 5% p.a. and yearly rent increases are anticipated.
- If you decide to sell the property, the balance of the lease period is transferable to another investor.
- QBCC Home Warranty Insurance covers you against structural defects for 6.5 years, plus the builder offers an extended 12 month warranty for non-structural defects (normally 6 months).
- Massive Tax Depreciation benefits for 40 years.
Due to the rarity of these properties, they often sell within days (sometimes hours) of being released. 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).
Like most houses in Queensland, these are built on a two contract system:
1. Land Contract: $1,000-$5,000 initial deposit, with the balance of a 5% deposit due upon finance approval.
2. HIA Fixed-Price 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!
To learn more about Dual-Occs, please read our Q & A page.
For further information or to arrange an inspection of a completed Dual Occupancy home, please contact Brian White on 0418 360 490 or firstname.lastname@example.org
NOTE: Returns will vary depending on your personal circumstances. Always seek independent financial, legal and taxation advice before making any investment decision.