What Are The Differences Between Duplexes, Dual Occupancy And Granny Flats?

As single-family homes and apartment buildings continue to rise in price and scarcity in Australia, more and more people are opting for dual occupancy homes, duplexes, and granny flats.

Which of these three houses—the conjoined twins, the modest apartment in the rear, and the one in the middle—is which? They're all similar. Many people get the three mixed up, and it's easy to confuse them.

To find out whether any of these possibilities meet your requirements and building standards, it's helpful to know the difference between a duplex, a granny flat, and a dual occupancy. Consider your property goals, budget, and desired level of seclusion before making a final decision.

We've outlined each alternative's features, building requirements, and advantages.

Dual Occupancy

Attached and detached houses are the two main types of dual occupancies, or shared-living residences. The property upon which they are constructed is always regarded as a singular parcel of land and so cannot be separated. Although it may restrict your freedoms, it usually results in cheaper construction and council fees than a duplex. However, the house's utilities can be divided.

Because it is far more affordable to obtain a dual occupancy than a single-family property, it is perfect for first-time homebuyers who are on a tight budget but still want a nice area and attractive homes.

Guidelines For Dual Occupancy Constructions

To be approved, a dual occupancy building must adhere to specified planning rules and be located within a zoning area designated by the council. A minimum site width and minimum site size determined by your local municipality are part of the criteria.

Would You Benefit From Dual Occupancy?

Rather than renovating or extending your house, a large piece of land might be better invested by building a dual occupancy. Owners may maximise their financial returns by utilising one property for living, renting out or selling the other, or doing all three. For bigger families, it's an excellent choice as well.

Dual Occupancy Benefits

• The investor has a wide range of blocks within the council area because no land size limitations exist for dual occupancy units. Developers can't artificially inflate the price of a block just because it has the potential for two dwellings, as is common with duplex blocks.
• Regarding council fees for dual occupancy, the prices are much fairer. You can save a tonne of time and money by building a single-family home instead of a duplex, which doesn't require the same level of council permission and town planning.
• Producing a better profit than a duplex home is possible with dual occupancy buildings due to lower expenses for the land component, as well as savings on council fees and time constraints.
• A single set of rates can significantly reduce the yearly expenses of a dual occupancy/auxiliary property. This contributes to the increased yields they achieve.

Dual Occupancy Drawbacks

• Not being able to strata title as a duplex allows.
• Limitations on the size of the homes.
• There's only one driveway crossover/egress.
• The rapid rise that some duplex examples exhibit is absent.

Dual Occupancy Expenses

• Initial Expense: Constructing two independent homes on one lot is called a dual occupancy house. The starting price may be costly because two full constructions are required, each with its foundation, walls, roof, utilities, and finishes.
• Land Purchases: The land's price is a major consideration. Buying a larger lot, which is generally necessary for dual occupancy houses, can increase the price.
• Fees for approval and permits: Additional upfront costs may be incurred due to zoning approval, permit, and inspection fees, which can vary by area.
• Building Supplies and Workers: Compared to constructing a single home, the cost of materials and labour for constructing two dwellings will be higher.
• Infrastructure and Utilities: Water, power, and sewage lines will need to be run independently to each apartment, increasing the price.
• Expenses for Law and Administration: Surveying, legal paperwork, and professional fees are all considered administrative and legal costs.

Duplex

Upon first glance, a duplex may appear to be a dual occupancy home. Two residences are nevertheless regarded to be in the same property even though they share a wall—a shared 'party wall' in real estate parlance. This allows for subdividing the land as each is recorded with a distinct title. 

Duplexes provide more options for buyers and sellers than dual occupancy homes due to the subdividing potential. The affordability of the duplex is yet another perk. Duplexes are also popular among first-time homebuyers since they may be purchased for as little as half the price of a detached single-family house of the same design and size.

Guidelines For Duplex Buildings

There are a lot of criteria that must be satisfied before the local council may approve a duplex. The lot must meet certain minimum dimensions in width, depth, and setback by certain council regulations. Owning land in a desired neighbourhood is crucial for creating duplexes with a good return on investment.

Should You Invest In A Duplex?

For much less money than the typical house and land bundle, duplexes allow homeowners to own a home and a plot of land rather than just an apartment or unit. Duplexes are a great alternative to single-family homes for those who want to live in a certain neighbourhood but cannot afford a single-family home.

You may avoid the hassles of a corporate body and yet make money renting out duplexes if you control the whole block. A single asset can generate two streams of rental revenue for landlords. Your piece of land may be worth considering seriously if it satisfies the duplex building standards and you are in the market for an investment property.

Benefits Of A Duplex

Renting Them Out To Outside Tenants Is Simple

If you build a duplex, you can live in one half and rent out the other. In most cases, you would earn more than renting a granny flat in the same area. This is in contrast to some states where the local council's regulations prohibit renting out granny flats to anyone other than immediate family.

Building A Duplex Might Result In High Capital Gains Tax

A granny apartment is only sometimes considered to provide the same financial value as dividing one block of land into two that may be lived in and sold separately. Still, a land split can increase the value of your home significantly.

Their Size Restrictions Are Significantly Less Stringent

For instance, a duplex can be built on a 400 square metre block, which is smaller than the 450 square metre minimum needed for a granny flat. Nevertheless, it is highly recommended that you consult your particular council, as the regulations might differ from one state to another.

Duplex's Drawbacks

Obtaining Clearance For Dual Occupancy May Take More Work

There might be better options where getting a dual occupancy approved is a major hassle.

Greater Fees Are Possible 

Some places have high fees, which might put a private enterprise at a disadvantage.

They Often Cost More To Construct

Creating a duplex is more expensive and time-consuming than creating a granny flat since it is typically necessary to destroy an existing principal dwelling to make way for it.

Duplex Expenses

• Building Expenses: Duplex construction is similar to dual occupancy, which entails establishing two independent dwellings. Building supplies, labour, and permits will add up to more than the cost of a single-family home.
• Size of Land: Expenses will be affected by the land's size and location. It may be possible to lower the cost of land acquisition by constructing duplexes on smaller lots compared to dual occupancies.
• Complexity of Design: Duplexes can vary in price depending on their architectural intricacy. The cost will increase if you want a personalised design or fancy accents.
• Split Expenses: The two units may have to split the expense of maintaining a shared wall or space. It is important to consider these expenses.

Granny Flat

One definition of a granny flat is an independent living unit attached to a main house. The typical layout includes a sleeping space, a bathroom, a kitchenette, an eating area, and a living room.

For example, the apartment might be completely distinct from the main home, partially linked, or connected by a garage. Local governments choose the exact dimensions, although often they go under 60 square metres.

Grandparents and other elderly family members often choose granny flats, as the name implies. Their loved ones can still be nearby, but they can still live alone.

Another demographic that can benefit from this sort of housing is teenagers just starting to live independently. Since granny flats are in high demand as vacation rentals, this is another great option to put the space to use while also bringing in some additional cash for the family.

Building Guidelines For Granny Flats

The site must be a minimum of 450 square metres in size, and the total area of the granny flat cannot exceed 60 square metres. There can be up to two dwellings on the lot, and the main house needs parking off the street. Subdivision is not allowed once the granny flat is constructed.

Are You A Good Fit For A Granny Flat?

There is a solid rationale for the granny flat's enormous popularity in Australia. They work wonderfully for teenagers or older people starting to feel more self-reliant but still want to live near family. As an extra source of income, granny flats can be rented out to both long-term and short-term renters.

There are subtle but noticeable differences between these three house kinds. Investors and homebuyers alike will benefit from all three alternatives.

The Benefit Of A Granny Flat

Advantages To A Lifestyle 

You may utilise a granny flat for various purposes, including studying, hosting guests or relatives, or even giving your adolescent somewhere to hang out. It's a great addition to anyone's lifestyle.

Granny Flat's Drawbacks

There Are Tight Restrictions On The Size Of Granny Flats 

While specific laws for duplexes are more lax, in most places, you can only obtain approval to construct a granny flat that's at most two stories tall or sixty to eighty square metres in area.

In Certain States, They Can Only Be Used As Investment Properties

While the general public can rent out granny flats in certain jurisdictions, others, limit who may reside in and rent out these dwellings. For example, in some council areas, very stringent regulations make renting out granny flats privately impossible. They can only be occupied by someone dependent on the main dwelling (often a family member). Once this person leaves, the granny flat must be removed.

Duplexes are popular among investors, where granny flats are illegal to utilise as rental units.

Granny Flat Expenses

• Dimensions and Complexity: Compared to duplexes and dual occupancies, granny flats tend to be smaller and have simpler designs. This allows for more cost-effective building.
• Regulations and Permits: Compliance with local legislation and the costs of obtaining the necessary permissions differ. Permit costs for granny flats may be lower in places with more relaxed regulations.
• Infrastructure: Although utilities still need to be connected, the expense may be less for granny flats than for bigger houses due to their smaller size.
• Custom vs. Prefab: Prefab (ready-made) or custom-built granny flats are available.

Conclusion

As single-family homes and apartment buildings in Australia rise in price and scarcity, more people are opting for dual occupancy homes, duplexes, and granny flats. Duplexes are built on a single parcel of land, with utilities divided between the two. They are more affordable than single-family properties and are ideal for first-time homebuyers on a tight budget.

Dual Occupancy benefits include a wide range of blocks within the council area, lower council fees, and better profit potential due to lower expenses for the land component and savings on council fees and time constraints. However, duplexes have drawbacks such as not being able to strata title, limitations on the size of homes, and only one driveway crossover/egress.

Duplexes, on the other hand, provide more options for buyers and sellers than dual occupancy homes due to their subdividing potential and affordability. They can be purchased for as little as half the price of a detached single-family house of the same design and size. Duplexes must meet certain minimum dimensions in width, depth, and setback by local council regulations.

Investing in a duplex allows homeowners to own a home and a plot of land, providing a great alternative to single-family homes. They can generate two streams of rental revenue for landlords, making the piece of land worth considering if it meets duplex building standards and meets your property goals, budget, and desired level of seclusion.

Building a duplex allows you to live in one half and rent out the other, increasing your income significantly. However, it may result in high capital gains tax, as dividing one block of land into two can increase the value of your home. Duplexes have smaller size restrictions and are more expensive to construct than granny flats, which require the demolition of an existing principal dwelling.

Duplex construction involves building supplies, labor, and permits, which can add up to more than the cost of a single-family home. The size of land and location also affect costs, with smaller lots potentially lowering the cost of land acquisition. The complexity of design and split expenses can also impact the cost of creating a duplex.

Granny flats are popular in Australia for teenagers or older people who want to live near family while providing extra income. They can be rented out to both long-term and short-term renters. However, there are tight restrictions on the size of granny flats, with most places only allowing approval for buildings at least two stories tall or 60 to 80 square meters in area.

Duplexes are popular among investors, where granny flats are illegal to use as rental units. Granny flats tend to be smaller and have simpler designs, making them more cost-effective. Compliance with local legislation and the costs of obtaining necessary permissions may vary, with lower permit costs in relaxed areas. Additionally, prefab or custom-built granny flats are available.

Content Summary 

• As property prices rise in Australia, dual occupancy homes, duplexes, and granny flats gain popularity.
• The distinctions between dual occupancies, duplexes, and granny flats can be confusing for many people.
• Understanding the differences and building standards is crucial before making a property decision.
• Dual occupancies include attached and detached houses on a single parcel of land, often more affordable than duplexes.
• Dual occupancy constructions must adhere to planning rules and specific zoning areas designated by the council.
• Building a dual occupancy is ideal for first-time homebuyers on a budget, providing an attractive and cost-effective option.
• Dual occupancies offer financial flexibility, allowing owners to live in one property and rent out or sell the other.
• No land size limitations for dual occupancy units result in a wide range of block options within council areas.
• Dual occupancy buildings can yield better profits than duplexes due to lower expenses on land, council fees, and time constraints.
• Single rates significantly reduce yearly expenses for dual occupancy or auxiliary properties, increasing overall yields.
• Drawbacks of dual occupancy include the inability to strata title as a duplex and limitations on home size.
• Dual occupancy requires a single driveway crossover, lacking the rapid rise seen in some duplex examples.
• Initial expenses for dual occupancy involve constructing two independent homes, impacting overall cost.
• Dual occupancy land purchases for larger lots can increase the overall cost of the property.
• Approval and permit fees, building supplies, workers, infrastructure, and utilities contribute to dual occupancy expenses.
• Duplexes share a 'party wall' but can be subdivided, providing more options for buyers and sellers.
• Duplex constructions must meet council criteria, including minimum dimensions and desired neighborhood locations.
• Duplexes offer an affordable alternative for homeowners who want a plot of land in a specific neighborhood.
• Renting out one half of a duplex is simple, providing a potential source of income.
• Building a duplex may result in high capital gains tax and increased property value.
• Duplex size restrictions are less stringent than those for granny flats, allowing construction on smaller blocks.
• Drawbacks of duplexes include potential difficulty obtaining dual occupancy clearance and higher fees.
• Constructing a duplex is more expensive and time-consuming than building a granny flat.
• Duplex building expenses include building supplies, labor, permits, land size, and design complexity.
• Granny flats are independent living units attached to a main house, commonly chosen by grandparents or teenagers.
• Granny flat layouts typically include a sleeping space, bathroom, kitchenette, eating area, and living room.
• Local governments regulate granny flat dimensions, often limiting them to under 60 square meters.
• Granny flats are popular for providing independence to teenagers and additional rental income.
• Granny flats can be rented out to both long-term and short-term renters, offering versatility.
• The size of granny flats is restricted, with most jurisdictions limiting height and area.
• In some states, granny flats can only be used as investment properties and must be occupied by family members.
• Granny flats are illegal to use as rental units in certain areas, limiting their usage.
• Granny flats tend to be smaller and have simpler designs, making them cost-effective to build.
• Compliance with local legislation and permit costs may vary, impacting granny flat expenses.
• Infrastructure costs for utilities may be lower for granny flats due to their smaller size.
• Prefab or custom-built granny flats are available, providing flexibility in construction options.
• Understanding the benefits and drawbacks of dual occupancy is essential for potential homeowners.
• Duplexes offer more options for buyers and sellers, with potential for subdivision.
• Renting out one half of a duplex can be a lucrative source of income.
• Granny flats are popular for various purposes, including studying, hosting guests, or renting out.
• Granny flats have tight restrictions on size, limiting height and area in most jurisdictions.
• Granny flats can be rented out for additional income, contributing to homeowners' financial well-being.
• Duplexes are often considered more versatile for rental purposes than granny flats in certain states.
• Dual occupancies offer cost-effective solutions for first-time homebuyers on a budget.
• Dual occupancy building standards must comply with local planning rules and zoning regulations.
• Dual occupancy land purchases may impact overall property costs for larger lots.
• Building a duplex involves constructing two independent homes, increasing initial expenses.
• Understanding the distinctions between dual occupancies, duplexes, and granny flats is crucial for investors.
• Dual occupancy buildings offer financial flexibility, allowing owners to live in one property and rent out or sell the other.
• The benefits and drawbacks of each housing type should be carefully considered based on individual property goals, budget, and desired level of seclusion.