Can Dual Occupancy Be Sold Separately?

dual occupancy
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    When an investor is looking at property listings with an eye on the long term, the word "development potential" might be quite alluring to that investor.

    It is also a marketing term that homeowners may be curious about whether or not they can use when it comes time to sell their property. Properties that have the potential to be developed are often valued higher than blocks that are adjacent to them.

    It is possible to more than quadruple the value of a piece of property by subdividing it and adding additional residences, but you do not necessarily need to spend hundreds of thousands of dollars to enjoy the benefits of this strategy.

    Because of everyone's insatiable need for a good bargain, home builders might be enticed by the prospect of purchasing two houses for the price of one. Planning to build a home? MJS Construction Group brings your building project alive!

    In most cases, the cost of constructing a duplex is lower than that of constructing two single-family homes. This is due to the fact that the land required for the construction of a duplex is less expensive than the land required for the construction of two separate lots.

    duplex melbourne

    Despite the fact that duplex projects have the potential for substantial earnings, deciding whether or not a duplex is a suitable investment depends on a number of factors and careful number crunching. Duplex projects have the potential for significant profits.

    Dual occupancy homes, which are high-density living arrangements that are characterised by two stratum units on a single block, can be an attractive alternative for owner-occupiers, investors, and a large rental demography. Dual occupancy homes can accommodate more people. There are a multitude of advantages to having a dual occupancy. They often provide investors with the opportunity to maximise their return on investment (ROI) from two different income streams without incurring the additional expenditures associated with owning independent land titles, such as separate rates and body corp fees.

    Dual occupancy development in Sydney has become increasingly popular as a solution for landowners who need additional space for their families as well as for developers who want to capitalise on the city's thriving housing market. This is due to the city's rising property prices as well as the growing demand for rentals.

    What is Dual Occupancy?

    A dual occupancy is defined by the laws of the State Government of New South Wales as "two houses on one title, either attached or detached." Different from having a secondary housing or a granny flat positioned at the back of a property, dual occupancy refers to using a single dwelling unit for more than one household. Attached dual occupancy denotes the presence of two separate homes on a single parcel of land, provided that neither of the homes is considered a secondary residence. Dual occupancy detached refers to a situation in which two separate dwellings are located on a single parcel of property; it does not include a secondary dwelling.

    A duplex is an example of a property that has dual occupancy. If you are thinking about constructing a duplex, you should talk to the experts at we Build Australia because we have the most qualified personnel available. We have a group of skilled dual occupancy builders on staff who will be able to assist you throughout the entire process, beginning with the council approvals and continuing all the way through to the finished product.

    Why Should You Consider A Dual Occupancy?

    If your home is situated in a neighbourhood that is zoned R2, R3, R4, or B1, the local council may grant you permission to construct a dual occupancy on the land you own. If you already have a knock-down rebuild and want to build two new houses, or if you want to build a new dwelling behind an existing one, or if you want to build two new dwellings on a block of land that is now vacant, you can't go wrong with a duplex. Homeowners who wish to maximise their income, downsize their current home, or raise the value of their property are increasingly turning to the construction of homes that are designed to accommodate a dual occupancy. Having a dual occupancy comes with a number of advantages, including the following:

    • The rising value of the property — for instance, constructing a duplex has the potential to raise the value of your property by up to forty percent, and if a Dual Occupancy Subdivision can be realised, there is the potential for homes to more than double in value.
    • An additional source of income — in addition to standard incomes, the rental revenue from a 4-bedroom duplex in certain areas of Sydney can amount to as much as $1,400 per week in rent. This is an additional source of income.
    • Reduce the amount of risk you are exposed to by using dual occupancy. If there are two properties, there is a reduced chance that both of them will be unoccupied at the same time.
    • You can cut down on the cost of development by selling off one half of the dual occupancy building. This will help you save money.
    • Affordability - duplexes are an excellent way to begin and save money and are a terrific way to start. Investing in a duplex is an excellent method to position yourself financially for the purchase of a more expensive property in the future if you are now unable to do so.
    • Freedom: If you own a duplex, you can rent out both units, sell both units, or live in one and rent out the other. Alternatively, you can live in one and rent out the other.

    Benefits of a Dual Occupancy Home

    Growing in Popularity

    As more people in Australia migrate into and remain in urbanised inner to middle-ring neighbourhoods, yet still demand constant contact with intergenerational family members, the popularity of these structures has increased. This increase can be attributed to certain generational shifts. The advantages of owning and residing in a property with a dual occupancy are being recognised by an increasing number of Australians.

    duplex homes melbourne

    Investors and developers continue to realise the cash-flow-positive benefits of having two dwellings set on one land title, with potentially far higher yields than blocks containing one strata building. These properties are gaining popularity in capital cities such as Melbourne and Sydney in the form of granny-flats, multi-unit, townhouse, and dual-key developments. In the United States, they are commonly known as duplexes, multi-family, or multi-generational houses. See our list of available builder services melbourne to help you make an informed decision for your treatment.

    Types of Dual Occupancy

    "Dual Occs" can either be linked to one another in the form of a duplex or built as two independent homes. Although the individual distinctions between properties have an impact on investors, the possibility for rental revenue exists in every property.

    • Granny flats are usually about the size of a one- or two-bedroom apartment, and they are situated at the back of yards that are relatively large. They need to get consent from the local municipality before they can build, and they also need permission to let tenants move into the property.
    • A duplex consists of two properties that are adjacent to one another or share shared walls, such as a single-family home that has been partitioned into two apartments and can therefore be sold independently.
    • A home that has a common front entrance door and hallway, in addition to potentially sharing extra living spaces like the kitchen and living room, is referred to as having dual keys. Typically, a portion of the property is separated from the rest of it by a lock and key and rented out to a different tenant.
    • Properties with dual occupancy may or may not be adjacent to one another or have common walls, unlike duplexes.
    • However, they do share common land.Dual occupancy home designs appeal especially to students and young professionals, and the senior population who may need the security of younger family members present. This makes dual occs attractive for investors depending on the locality of the property, potentially allowing both increases in yield and capital growth over property cycles. Investors can lease both sides out to maximise ROI. An owner-occupier could live in one side and rent out the other so that their tenants contribute to a mortgage.

    Benefits of Investors

    Dual occupancy makes financial sense for investors who would rather spend less money knocking down an older structure and erecting two homes on the same site than spending more money remodelling the existing home. In addition to this, clients only have to deal with a single construction and design team that is working on their project. Traditionally, investors have only been required to make payments on the land itself, so they are eligible for tax breaks and savings on their stamp duty.

    Dual-occupancy homes, in contrast to standard single-family homes, call for additional customised design and construction considerations. In addition, council approval and zoning approvals are necessities for these homes. Homes that are dual occupancies, duplexes, or multi-unit properties typically need adequate noise insulation, privacy, and individual comfort features such additional ensuites, baths, storage, and living spaces.

    Towns with high walk scores, which are typically located close to train stations, schools, and tertiary education institutions, are the types of communities that are proven to be attractive to the type of buyers who want to live in dual occupancy dwellings. For investors, the best sites to consider for a dual occ are those that are located on quiet suburban streets that are within striking range of infrastructure and amenities.

    Typical Returns Compared to Single Dwelling Investments

    It is common for one site to have one home, which may draw a weekly rent of $750 per week, but each of the dual-occupancy dwellings on the same possible site may earn $600 per week, which would represent $450 more in rent each week for the entire property.

    Additionally, if the land is sufficiently vast, it has a better chance of appreciating in value more quickly than a conventional apartment in a huge complex, which has a much more fragmented share of the total value of the property. When it comes to dual-occupancy homes, the process of buying and selling is typically more flexible for investors. This is due to the fact that dual-occupancy homes provide investors with the opportunity to maintain residency or title while simultaneously selling or leasing out at least one of the dwellings.

    Is council approval required?

    Before moving forwards with any dual occupancies, a development consent application must be submitted to the Local Council. This indicates that a development application needs to be submitted to Council in order to be decided upon.

    Is a dual occupancy permitted in your zone?

    The Local Environmental Plan (LEP) for the Council area lays out land zoning tables that give a framework for the way land can be used. These tables can be found in the LEP. Only if dual occupancy is specifically listed as a permitted use in the zone's zoning ordinance can it be considered legal.

    What planning controls to look out for?

    Even if a dual occupancy is allowed in the zone, the building must nevertheless adhere to the other planning limitations outlined in the Local Environmental Plan and the Development Control Plan (DCP). These planning regulations will eventually decide whether or not a dual occupancy will be permitted in a building.

    The main planning controls to look out for include:

    • Minimum Site Area; and
    • Minimum Site Width.

    Designing The Dual Occupancy

    When constructing a dual occupancy, it is vital to consider the controls established in the applicable Land Use Plan and Development Control Plan (LEP and DCP), just as it is when designing any other type of development. In most cases, the DCP will include a portion that is solely dedicated to dual occupancy development. Controls have been outlined in the LEP and DCP for things like the maximum floor space ratio, maximum building height, building setbacks, vehicle parking, open space, and the minimum area that must be vegetated. The application of these controls should direct the design process so that the development approval procedure may move along more quickly.

    Subdividing Your Dual Occupancy

    A subdivision of a dual occupancy is often authorised with approval through the use of a Torrens title or a Strata subdivision, but this is subject to change depending on the LEP. This indicates that a strata title unit or a Torrens title lot will be produced for each dwelling that is contained inside a dual occupancy. One of these options will be chosen at random.

    The submission of a Development Application is required in order to subdivide a property that already has a dual occupancy. However, prior to submitting an application for a subdivision, it is crucial to make certain that the development satisfies all necessary subdivision requirements established by the LEP. Only then should the application be submitted.

    Here Are Some of the Issues You’ll Face

    You are not the only one who feels overwhelmed or as like they are drowning in unending paperwork and compliance requirements. Homeowners and investors sometimes find the planning system to be overly complicated and frustrating as a result.

    The preparation of an application for dual occupancy may be exceedingly challenging and taxing, and dealing with the Council can be a living nightmare. On top of all of that, the cost of the process as a whole can be rather high. In addition, we are rather certain that you have other, more important things to do. That's when we come into the picture!

    It is something that we do each and every day, all day long. We're fairly good at what we do thanks to our team of more than ten highly skilled and experienced town planners, property consultants, and licenced architects as well as draughtsmen.

    What Rules Do I Need to Comply With?

    After working on hundreds of projects with dual occupancy over the past 25 years, the following are some of the most prevalent compliance guidelines and questions to consider:


    You have some wonderful suggestions for shared living quarters. Your tough next-door neighbour has, however, voiced opposition to your idea on the grounds that it will provide a view of their backyard. Did you know that before the council makes a decision on the DA, you may be given the opportunity to answer any objections raised by your neighbours? But how exactly can you respond to those criticisms if they are based on the planning process?

    Defining Your Development

    Did you realise that your plan for dual occupancy is quite comparable to that of a supplementary dwelling, albeit with some key distinctions? It's possible that a secondary residence would work better on your property than the primary one. How do you differentiate between the two, and which one is the Council more likely to back? This article will help you make a decision about home building constructionHere at MJS Construction Group, we’re committed. 

    Bushfire Prone Land

    What steps should you take if your property is situated in an area that is prone to wildfires? Have you considered the possibility that this could involve other organisations in the evaluation process, such as the Rural Fire Service? What steps would you need to take in order to ensure that you meet the criteria set forth by the Rural Fire Service?


    You might wish to create additional living space on your property for a member of your family, or you might want to partition the land so that the two living spaces are placed on separate titles. If your property has a dual occupancy, is it possible to partition it, and if so, how? Depending on the size of your land, you might be able to gain a permission for two dual occupancies, which would give you four independent residences on the site that could each be sold on its own. If this is the case, you could sell each of these properties on its own.

    What are the hidden costs of building a duplex?

    In most cases, duplexes need to be built on big, wide, or dual-frontage blocks in addition to having the correct zoning in order to be subdivided into two independent lots.

    It is possible that other buyers will have the same idea, leading to increased competition for suitable locations. When the premium is really large, it's possible that you won't make as much money overall.

    The process of subdividing a property can be complicated and can result in thousands of dollars in consultation fees paid to town planners. This is not a do-it-yourself kind of project.

    Many purchasers were taken aback by the whole cost of this procedure. This share is somewhere in the range of $40,000 to $50,000.

    Blocks that already have approval can reduce the amount of bother that must be endured, but they typically cost more than comparable sites.

    Due to the fact that it had previously been approved, it saved me a significant amount of time while I was the owner of the land and decreased the costs associated with holding it.

    Because I already had something prepared, I was able to save thousands of dollars.

    The phases of design, approval, and construction typically take longer than a year to complete. Holding costs may include loan repayments, council rates, and land tax.

    Those who choose to demolish and rebuild their homes must take into account the expense of demolition, which can reach up to $20,000 in some cases.

    In most cases, it will be much simpler if there is nothing on the site.

    The Goods and Services Tax (GST) could need to be included in the deal if the homeowner plans to sell the duplex within five years of its completion, which might have an impact on the overall earnings. Properties that aren't used as a primary residence are subject to a different type of tax called the capital gains tax.

    How can you make sure a duplex investment pays off?

    Investors should look at previous sales to estimate the worth of each residence upon completion, and then compare this to the purchase price and costs in order to calculate the amount of equity that will be generated as a result of the investment.

    Suburb fundamentals are vital for duplex builders.

    Because location is of the utmost importance, a duplex's closeness to amenities, public transportation, or parks - the standard growth factors that apply to any property in order to maximise the possibility that its value will increase – will also apply to a duplex.

    The location will also have an impact on the style of duplex that is built. If you have a low land value, you don't want to overcapitalise on the quality of the project. On the other hand, duplexes in locations with high land prices should be built to a high grade in order to match the expectations of the market.

    The presence of an excessive number of duplexes in a single location can put downward pressure on the rental return in that location. Make an effort to cultivate them in a setting where they are the exception rather than the rule.

    Site selection was extremely important, and before making a purchase, town planners can advise buyers on which types of developments are permitted in the area.

    The possibility of financial gain is associated with dual occupancy. However, this can also be a loss for someone who buys a property in the mistaken belief that it is suited for development when in fact it is not.

    Despite the fact that constructing a duplex comes with a number of truly beneficial advantages, time is an important consideration. It is vital to keep in mind that the permission process from the Council can take anywhere from three to six months before you finally get the go-ahead to start construction. There are also other options available, such as CDC (private certifiers), which may require less time from the design process to the building process, but which may also be fairly expensive. Regardless of the path that you decide to take, we will manage this operation for you and make sure that you are prepared for it as well as well informed of all the steps that are involved.

    Frequently Asked Questions About Dual Occupancy

    The development costs for any dual occupancy project will vary between $80k – 120K*. Building costs will depend on the type of duplex construction. Average figures on top of the development are: 2 x 4 bedroom with high-end finishes around $1m.

    A dual occupancy property is when you build two or more separate properties on the same block of land. Or, it can mean building a whole new house next to or behind your existing home. It essentially means that you have two or more homes on the one title of land that will ultimately get subdivided in the future.

    Currently within the Mixed Housing Suburban and Urban Zones, 2 dwellings are permitted, but the ability to build three dwellings is under appeal. Dwellings within these zones have a minimum size of 30m2 for studio dwellings and 45m2 for one or more bedroom dwellings.

    There will only be one house and one secondary residence on the lotThe lot is not subdivided. The property must have a minimum 12-meter width at the building line of the existing dwelling. If your property does not meet this requirement you are able to apply for an attached secondary residence.

    Dual occupancy can be approved without the owner needing traditional council development approval (subject to meeting set criteria). This saves you time and will prepare and submit all that is required to the Private Certifier to get the project underway without neighbours objecting.

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