Can You Sell A Duplex Separately?

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    Dual occupancy properties that are both well-designed and well-located have the potential to offer excellent cash flow because they collect rent from two separate tenants simultaneously.

    Additionally, investing in the properties with the intention of keeping them for an extended period of time might result in substantial capital growth from the presence of two properties on a same site rather than just one.

    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.

    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. If you're looking for a high-quality, affordable builder in Melbourne, you're in the right place! Check MJS Construction Group!

    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.

    What Is A Duplex?

    A residential building with two separate dwelling units that are connected by a shared centre wall is known as a duplex. The dwellings will either be located on a single land title, in which case they will be owned and sold jointly, or they will be located on separate land titles, in which case they will be owned and sold separately.

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    The owners of a duplex are required to come to an agreement on a building insurance coverage that will cover both units. In most cases, a body corporate is unnecessary for a duplex; however, this can vary depending on the age of the property and the jurisdiction. In order to obtain additional information, you need to get in touch with the appropriate official in your state or territory. A duplex is a single residential building that contains two separate dwellings yet shares a roof and has a wall that separates them. Each half of the house is a completely independent residence, and it has its own entrance, amenities, and yard. This type of dwelling is also known as a dual occupancy.

    When there is just one title for a duplex, both portions of the property have to be sold at the same time. Each residence in a duplex can be sold independently if it is first partitioned into its own individual title and then sold.

    What is the difference between a duplex and a house?

    A house is distinct from a duplex in that it has only one dwelling unit under a single roof, as opposed to having two dwelling units under a single roof in the case of the duplex. In a duplex, the two residences have one common wall in common, but otherwise they are completely independent entities with their own entrances and utilities. Are you thinking about giving your home a makeover? 

    Can You Own Half A Duplex?

    You certainly can, but your ability to do so will be determined by whether or not the two homes are on the same title or on separate titles. Because it has been divided up into individual titles, the duplex that you want to acquire will only be available to you to purchase in its whole in one half.

    A Duplex Gives You Flexibility.

    Having two properties side by side gives you a range of options.

    • You can have family members reside next door while you live on the other side of the house. If you have elderly parents or grown children who would like to live close by, this may be the most suitable option for you.
    • You have the option of living on one half of the property while renting out the other in order to create income, or you may rent out both sides in order to obtain two separate rental streams from the property.
    • You have the option of selling either side of the duplex.

    Building a single-family residence on a piece of land limits your options in comparison to converting the land into a duplex, which offers a wider variety of opportunities. For the benefit of investors, the price of the land will be divided between the two homes.

    A duplex may be located on either one or two separate titles. If you have two titles to the property, you will be able to sell each side as a distinct home; alternatively, you can choose to keep one of the homes and sell the other one. Although there may be additional costs associated with subdividing, the benefits of selling the houses as distinct properties will make it profitable notwithstanding these costs.

    When it comes to authorising duplex constructions, different city governments will have different rules. Zoning is another critical component that plays a role in determining whether or not dual occupancy is permitted in a given location. The width of the block frontage, the size of the block, the site orientation, the home footprint coverage, and the driveway crossovers will all be variables that councils will have standards for. Because the permission procedure can be complicated, it is vital to work with an architect or builder who will manage the process of obtaining approval from the local council. If you require assistance with this matter, Silverline Homes is available to provide it.

    Options For Developing A Duplex

    If you have a parcel of land or a single-family home that you intend to raze, you can hire an architect to design the project for you, and then they can collaborate with a town planner to submit it to the local council for permission.

    We work with a wide variety of clients, and the majority of them already own finished and authorised building blueprints. This covers multiple-family homes such as duplexes and other types of developments with multiple occupants.

    Imagine that you own a piece of land or a home and that you are in need of some help and counselling. In this scenario, able to provide the whole range of services, including the determination of whether or not the project is feasible, the acquisition of the project design, the management of the council approval procedure, and the construction of the dual occupancy dwelling.

    Two Types of Subdivision

    Generally speaking, a subdivision with a Torrens title is the greatest option because it frequently results in the highest end value and sale price. The downside of a Torrens title, on the other hand, is that it is not always possible to make it work for dual occupancy. In these cases, you will need to refer to the strata subdivision requirements.

    A Torrens title development has higher sewer charges than what we refer to as sewer headworks, which is the second major drawback of this type of subdivision. You will have a connection point that leads into a real lot of land at some time. Therefore, it may be more expensive in terms of the fees associated with the site, which may add anywhere from $20,000 to $50,000. I was reminded that I had been quoted on one of mine, and at the very last minute, I made the decision to transfer to a strata subdivision. I was able to successfully complete the stratum subdivision with around only $10,000 worth of site works rather than the typical amount of $50,000. See our list of available builder services melbourne to help you make an informed decision for your treatment.

    The requirement that you attend a meeting with your neighbour once a year is, of course, one of the drawbacks of owning property with a strata title. If we are only talking about subdividing a single lot into two lots for the purpose of dual occupancy, the process is simple and will most definitely be worth your time.

    Understand The Steps For Duplex Development

    Here is a brief list of the common steps to follow for developing a duplex:

    • Make sure you get your loan pre-approved before moving on.
    • Gain an understanding of the local environmental plan as well as the development control plan that was created by the local council.
    • Before you fully commit to the project, it is important to first do a feasibility study to determine whether or not it is even possible to achieve the desired results.
    • Appoint an architect of your choice undertake the process on your behalf to go through the council zoning and planning regulations. This will ensure that there are no covenants on the land title or council restrictions that could hinder the project. Alternatively, you can have to undertake the process on your behalf.
    • Once you have satisfied the requirements for town planning compliance, have examine the initial proposed plans and provide general feedback. This will ensure that all parties are on the same page and will facilitate the production of a good design that is tailored to your objectives.
    • Obtain the final permission for the finance needed for the duplex development.
    • After obtaining the town planning permit for the product, will be able to liaise with the appropriate parties to arrange all building documentation, reports, service providers permit, and obtain the building permit. This will alleviate any stress that is associated with going through such a detailed process.
    • Start duplex construction.
    • Make an application for a certificate of subdivision.

    What Are the Benefits?

    The increased value of the property that results from the completion of a duplex development is the primary selling point for the project to prospective buyers and financiers. Investors are enticed by the prospect of earning two rental incomes from a single asset. However, the primary source of profit in a duplex transaction comes from the equity. The construction of a duplex generates equity while also increasing the rental income from the property.

    What Are the Drawbacks of Building a Duplex?

    Finding an appropriate plot of land on which to construct your duplex is the very first challenge you will face. The land on which a duplex is built often needs to be a certain size, and it also needs to have the right kind of zoning in order for it to be divided into two independent lots. Because landowners are acutely aware of the opportunities presented by their property, they may ask for a greater price up front in exchange for the right to purchase it. In certain circumstances, the premium is so large that it is even questionable whether or not it is worthwhile to construct a duplex because it is possible that you would not be able to generate sufficient money to cover the costs.

    One of the disadvantages of a duplex development is that the process of subdividing a property is not as simple or streamlined as it could be. It is not necessary something that you can complete all by yourself, and it can be a work that costs thousands of dollars in consulting fees to town planners. There are, however, blocks that already have approval, which can assist reduce the amount of effort involved; however, the price of land on these blocks will definitely reflect the simplicity that they offer.

    It is possible that purchasing land that does not already have the necessary permits would end up costing you the same amount of money (or even more) as if you had bought and built on a block that already had those approvals in place. When you include in your holding fees, you may be able to save yourself thousands of dollars and a significant amount of time by purchasing land on a block that has already been approved. It is not uncommon for the phases of design, approval, and building to take more than a year to complete. Holding costs may include loan repayments, council rates, and land taxes.

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    Frequently Asked Questions About Dual Occupancy

    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.

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    Buying a duplex allows you to produce healthy rent yields and strong value growth for a much more cost-effective price than what you'd pay for two detached houses in the same location. A duplex is a type of residential home that has two units divided by a common central wall.

    Areas where most of the homes are duplexes tend to have lower property values and will not necessarily be a good return on your investment. You may also come across duplexes where one unit is at the front of the street and one is at the rear of the lot.

    Deciding between renting a duplex over another dwelling is a difficult decision. A duplex offers many of the benefits of a standard residential home like a yard, garage and privacy. Duplex buildings are typically more affordable than single-family homes because the tenant is renting only half of the structure.

    Reasons To Build A Duplex

    Increased Funds for Your Mortgage

    Do you need assistance with your mortgage payments? In that case, you might want to think about purchasing a duplex as an investment.

    Investing in a duplex can generate equity rather quickly. On the other hand, this will change depending on the circumstances.

    For instance, the land cost to develop the duplex and subdivision, in addition to the fees required by the council, may cost you approximately $600,000. Within a period of 12 to 18 months after the duplex has been constructed and partitioned, you will be able to sell each of the homes for a price of $350,000 and make a profit of $100,000.

    Additionally, a duplex has the potential to produce a high rate of return. For instance, you can rent out each home for between $350.00 and $400.00 per week and obtain a good return of between 6.1% and 7% per year. You may also explore living in one side of the duplex while renting out the other to a renter. In this scenario, you would still be able to get an ongoing return that is high in interest rate.

    You might speed up the process of paying down your mortgage by using the additional money you receive from selling or renting out the duplex.

    Keep Elderly Family Members Close

    When you own a duplex, you have the option of living in one of the homes while allowing ageing relatives to occupy the other. If your elderly parents or grandparents live nearby, it will be much easier for you to provide the care and assistance they require. This is especially true if they are close to you geographically. This is of utmost significance in the event that they are experiencing health problems. You can provide a hand to one another in the kitchen, in tasks, and in providing each other with the much-needed company.

    In addition, older relatives who live next door to one another can put off or completely avoid the need to move into a retirement community or nursing facility. They are able to save some money because it is more affordable than purchasing an additional house, unit, or retirement community for them to live in.

    On the other side, having grandparents who live nearby is advantageous if you have young children and either don't have the time or the financial means to take care of them all the time or if you can't afford to pay for childcare. They are able to provide unpaid child care for your children while you are at work, shopping, or enjoying an activity outside the home. They are also capable of providing enjoyable entertainment for your children.

    It’s a Good Introduction to the Property Game

    Are you interested in being a landlord? You can launch your real estate career by constructing a duplex, moving into one of the units, and leasing out the other. You will get knowledge on the landlord-tenant regulations that apply in your state, as well as how to personalise a lease, collect rent, and do background checks on prospective tenants. In addition, if you live close to the rental property, you will be able to view it every day, which will allow you to monitor its condition, make any necessary repairs, and ensure that your tenants are acting appropriately.

    On the other hand, you can rent out both units in the duplex, so generating two separate income streams from the property. The rental return rate has the potential to result in positive cash flow from the beginning of the investment.

    In addition to this, the possibility of not having a strata title structure enables you to raise your rental return, decrease your holding costs, and get more control over how much money you spend on both of your properties.

    Increase Your Revenue With Airbnb

    If you rent out one or both of your homes through AirBnB, which is a website that specialises in holiday rentals, you have the potential to earn more money than if you rented it out on a regular one-year lease. This is due to the fact that you are able to charge a higher rate for holiday rentals, which are stays of a shorter duration. People are also willing to pay a higher price for a shorter stay as opposed to an extended stay since they value their time more. You can anticipate earning around twice as much as you would have with a typical lease arrangement.

    Remember that renting through Airbnb may be subject to restrictions imposed by the local council; therefore, you should first get in touch with the authorities in your area to discuss the available choices.

    If you are in need of additional money, you can collect short-term market-rate rents through AirBnB, which offers a self-regulating solution (via reviews left by guests and hosts) that is a product of the free market. When you find a tenant through your listing on Airbnb (which should contain high-quality photographs and a great deal of information), they will pay you, the host, for the lodging.

    You should be able to charge a premium fee per night or per week to rent out the duplex if it has nice furnishings and is located close to all of the community's facilities. You can also rent out individual rooms or a spare room in the house that you currently reside in for a reduced amount of money. However, in order to guarantee that you receive bookings, your rates should not be greater than those of other AirBnB duplexes.

    Additional Benefits 

    It is not required that both sides of a duplex be used as rental properties when the building is constructed as a duplex. The majority of people opt to live on one side of the unit while using the other side as a rental area to bring in additional income or even as a place to keep family members near by. You already have an advantage in terms of affordability because you live in the other side of the duplex, but the cash flow that is created by a tenant is an additional benefit. You'll be able to take care of a variety of costs with the money earned from the tenant's rent. Considering a new project? Then MJS Construction Group builders Melbourne is the answer.

    So what I would suggest is that you go ahead and, if you haven't already, grab one of our guides on achieving council approval. It includes in there a bunch of tips and tricks on dual occupancies if you're thinking about that, or maybe thinking about subdivision or granny flats, and it goes through that. So what I would suggest is that you go ahead and, if you haven't already: grab one of our guides on achieving council approval.

    So Can A Dual Occupancy Be Sold Separately? 

    The correct response is "yes." Nevertheless, there are a few hoops that we need to jump through for you, and this is not necessarily the case in every circumstance. It relies heavily on the size of the lot, as well as the local government area in which you live and the plans that are tied to that in terms of the law governing town planning.

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