What Is A Dual Occupancy House?

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    Depending on factors such as size, depth, vehicle access route, and the manner in which one satisfies the criteria of the local planning regulations, dual occupancy developments may keep the old (original) house and construct one new house either in the backyard or in the front yard.

    Other types of dual occupancy developments take place when an existing house is torn down to make room for the construction of two brand new houses. These new homes may be built one behind the other, which is referred to as a tandem design, or they may be built side by side, which is referred to as a duplex style development. Access, the site's frontage, depth, and direction all play an important role in the design of both of these spaces. Because both of the apartments on a corner site have considerable street frontage, corner sites provide a number of particular advantages when it comes to the process of generating a feeling of address. When one unit rests over another, which has been achieved, there is a more disputed form of the structure.

    What is a Dual Occupancy Property?

    The construction of two or more individual homes on a single parcel of land results in the creation of a dual occupancy property. Alternately, it may entail constructing an entirely new home either next to or behind the one that you already have. It effectively signifies that you own two or more residences that are located on a single title of land that will, at some point in the future, be split into separate lots. Check this list of Melbourne builder services to help you make an informed decision for your treatment.

    If you want to enter into the rental market and let out one or more of the properties while living in another, this can be a terrific option for you. It is also a great option for accommodating family members who are elderly, such as elderly relatives.

    A dual occupancy home may also be referred to as a multi-dwelling, a duplex, or a "side-by-side" development, all of which signify that the home contains two separate dwellings on the same plot of land. These kinds of living arrangements provide investors with independence and flexibility, while also maximising the potential earnings that may be obtained from a piece of property. When compared to buying two independent houses, the return on investment for purchasing these properties that have been combined under one title is significantly higher.

    duplex homes

    Types Of Dual Occupancy Properties

    • Duplex: Two properties that share common walls or are adjoined are classified as a duplex. It is a house divided into two individual properties and can be sold separately.
    • Dual occupancy: A double occupancy is similar to duplexes and shares a common land but does not share common walls.
    • Dual-key property: It is a property with a shared front entrance door and possibly an additional living space such as a living room or a kitchen. There is a section within the property that is locked and rented out to a separate tenant.

    Benefits Of The Typical Dual Occupancy Development

    The tandem-style configuration is the most common type of building that accommodates twin occupants. The preservation of one's capital occurs when the current house is kept in a dual occupancy development. This is because the asset that was purchased—the house on the land—is maintained in this manner.

    Because the house has value, you should give it some more thought before deciding to demolish it. If the house in a dual occupancy complex is in very poor condition or if there has been a considerable increase in the value of the property, then the only time someone should contemplate tearing it down is when both of these conditions are met.

    A dual occupancy means that the land value is split between two dwellings, which brings the cost of the property down to one-half of what it would be otherwise. If one were to be successful in keeping the existing home and obtaining permission to construct two new residences in the backyard, the cost of the land component would be one third of the total price. At MJS Construction Group, we have the best dual occupancy selection to make your house a dream come true.

    A Dual Occupancy Allows One To:

    • Utilise an unused backyard and become maintenance-free
    • Sell the newly created property subdivision and use that cash to pay down the mortgage or use it for any worthwhile purpose or investment
    • If you decided to build the new dual occ home, you could move into your brand new home and enjoy the new kitchen and bathrooms
    • You could then sell the original home free of capital gains tax (check with your accountant first) or rent it out for some additional income
    • Or you could sell both the homes or rent them out as investment properties which generate attractive depreciation benefits

    There are some neighbourhoods in Australia, particularly in the cities of Melbourne and Sydney, where the value of the land is far more than the value of the actual property.

    The majority of middle and outer suburbs contain homes that have a high value due to the fact that they generate rental income and are simpler for conventional lenders to finance.

    For instance, if the house is kept as part of the dual occupancy complex, financial institutions may be willing to finance between 80 and 95 percent of the property's worth. As a result of the home no longer being on the property, financial institutions have a tendency to lend no more than 65–70 percent of the value of the land. In the opinion of the lender, the reduction of risk that results from the preservation of capital is attributable to the fact that the asset will maintain its value even if the development is not carried out. The value of the current home will, in most cases, continue to exist following the completion of the reconstruction.

    Additionally, rental income from the existing house can be collected during the planning phase of the development, and in some instances, it can even be collected once construction has begun. In most cases, it is not possible to create this kind of cash flow from an empty allotment.

    Dual Occupancy Profitability

    Because they maximise the value of the land, dual occupancy developments are beneficial investments.

    As two residences create two rental incomes, one generates twice the value that could have been generated from the initial house and land investment. Even if you sold the property you currently live in, for example, there is a good probability that you would not have to pay capital gains tax on the money. This would allow you to pay off your mortgage and any other outstanding bills, as well as free up income for use in other useful endeavours.

    After the dual occupancy subdivision is finished being built, the original house is frequently sold for a price that is very close to the price that was paid for the entire block of land along with the house. The second house is then elevated to the position of cream. Planning to build a home? MJS Construction Group brings your building project alive!

    Dual Occupancy Sites

    There is a myriad of things to consider when finding a suitable dual occupancy development site. Some of these are listed below. The cost of the site should result in acceptable development margins

    • The site width should allow for two crossovers in the ideal scenario, but many Councils in Melbourne are clamping down on this
    • The vehicle accessway should be compliant and meet the new mandatory safety standards
    • The site length and area should allow adequate north-facing open space for recreation and landscaping
    • The site should be close to infrastructure, schools, shops and transport
    • The title should be clear of restrictions and preferably without any easements
    • All the essential services should be available onsite or in close proximity and run in the most advantageous position
    • The site orientation should be perfect so that the amenities of neighbouring properties are not adversely affected
    • The zoning of your land and it's associated Schedule should not be restrictive
    • The planning overlays on your land should not be too restrictive
    • The site should be fairly level as sloping blocks may cost more to build. However, sites with great views benefit from sloping land
    • There should be little or no significant vegetation on the site and on abutting sites within say 5 m of the common boundaries
    • A soil test should demonstrate the foundations will not require additional strengthening
    • There should be no encroachments on your title boundary or by your property on adjoining allotments
    • There should preferably be precedents for similar development in your neighbourhood
    • There should be no planning overlays burden
    • Your local Council should encourage development to meet its housing stock forecast

    melburne home duplex

    Can I Sell a Dual Occupancy?

    Yes, without a doubt! In order to maximise your return on investment, this is the primary purpose for subdividing the land: so that you can sell each lot independently. Let's break down the different ways it can be done.

    To begin, you must either already own land that is appropriate for dual occupancy or you must purchase such land. The next step is to initiate the planning process in order to acquire approval for the dual occupancy complex. You start the process of subdividing the property as you make your way through the building process and as construction gets underway.

    We like marketing and selling the properties that have been subdivided from the plan. Your buyers will be able to instantly settle into their new homes after the construction is finished and we have arranged for subdivision approval. This will allow you to get a faster return on your investment.

    Suppose you decide to hold a real estate auction or a private sale after you have waited until all of the properties have been finished. If this is the case, then you will need to wait until the property is put up for sale, then you will need to have it advertised for many weeks (at the very least!), and then you will need to wait for the negotiated settlement time, which is often between 60 and 90 days.

    It's possible that you may collect more money for your homes if you ran a selling campaign following the completion of the additional properties, like we were discussing earlier, but keep in mind that every project and circumstance is unique. It is essential that you have a thorough understanding of the many alternatives and are aware that each of these will have an effect on the timing of your payment.

    Can a Single Property from a Dual Occupancy Project be Sold Separately?

    You are free to sell separately any property that is listed on its own title. When you initiate a dual occupancy, the ultimate objective is to subdivide the property so that each dwelling is placed on its own separate title. After then, you are free to sell each of them independently. Are you thinking about giving your home a makeover? Look no further!  MJS Construction Group  is here to help in your dual occupancy builder Melbourne.

    How can I Build a Dual Occupancy?

    You have a few choices available to you here. The first option is to construct an additional residence in your backyard, which would utilise the existing driveway if there is sufficient room. After that, you would divide the lot into two separate lots, each of which would include one of the homes. After that, the driveway would be considered community property.

    After that, you have the option of selling either one, selling one and renting the other one, or renting both of them! You have a plethora of options available to you here. In the end, regardless of how the project turns out, you will either have more money in the bank or more equity in the investment you made.

    The second choice is available to people who have lots of land that are big enough to accommodate new construction: they can demolish their current house and construct not one but two or more new homes. After then, you would subdivide the lot such that each dwelling would be placed on its own individual title of the land. These residences could either be semi-detached or totally detached, depending on the size of the original land as well as your ambitions for the property.

    You should now be familiar with the concept of a dual occupancy subdivision and or property thanks to the previous explanation.

    Why Choose This Style of Home?

    The primary objective of utilising this architectural style is to create two rental homes on the same piece of land. Additionally, the model is attractive to a wide range of groups, from younger people who are on a tight budget to older people who value the sense of safety that comes from having someone around.

    Additionally, there is a good chance that the residences will have a positive cash flow, and there is a growing possibility that they will provide a larger return on investment (ROI). In a nutshell, an increasing number of people are adopting this mode of life as a means to amass money more rapidly and to have numerous income streams while simultaneously keeping their living expenses to a minimum.

    Advantages of Dual Occupancy Living

    Dual-lifestyle living comes with a number of advantages and benefits that should not be overlooked. In addition to the fact that it offers a fantastic return on investment, there are a number of other benefits that come along with it, including the following:

    Great Fit For Families

    This type of living arrangement can be the best choice for you if you want to have a close relationship with your family while at the same time having some personal space of your own to call your own.

    Each home has its own separate entrance and living area, but the residents are still within earshot of one another should they require assistance. People whose parents desire to be closer to the family frequently choose this lifestyle option.

    Higher Returns

    It is only natural that the majority of people will be interested in the return that they can expect on their investment. You have full authority over the process of collecting rent from both living areas when you purchase one of these residences. This indicates that if you had this kind of facility, you would almost certainly be able to double the amount of rent that you collect, which would allow you to earn a larger return on your investment.

    Simply because of the additional income flow that is generated, an increasing number of people are looking to dual occupancy builders to develop this type of home for them. This is done for the sole purpose of paying off any home loans more quickly.

    Great Way To Enter The Property Market

    Tenants have a lot of interest in dual-occupancy residences as potential rental properties. This is due to the fact that there are additional design criteria and finishes that go into the construction of these kinds of homes, which makes them more appealing than the typical apartment. For instance, noise insulation, additional privacy precautions, and additional comfort facilities, such as an ensuite, need to be incorporated into the design of the building. The upshot from this is that it will never be difficult to find tenants interested in renting out a property of this type.

    Our top tips to consider when building a dual occupancy home:

    • Block frontage width: You will need a street frontage of more than 12m (ideally around 15m)
    • Block dimensions: The average dimensions needed for a dual occupancy design are 15.24m wide x 43.5m deep (approx. 635sqm)
    • House footprint: Generally you cannot have the house footprint covering more than 50% of the block (approx. 62 squares)
    • Driveway crossovers: You cannot have two driveway crossovers within a 12m frontage. You will also need to check whether street trees or electricity poles are going to affect where you place your driveways.
    • Feasibility: You will want to ascertain whether there is going to be a financial gain by you doing this. If you engage an experienced builder, they should be able to provide you with more guidance on this and help you do the number crunching. Good builders will want to see you get the most out of your asset and should help you achieve this.
    • Upgrade costs: When looking at the base price of designs on offer, always keep in mind that you will need to multiply every additional inclusion by two (because there are two properties). This can add up quickly!
    • Council approvals: On average, it will take 3-6 months to get dual occupancy designs through Council. You will want to select a builder that manages this process for you, as it can be more complex than a single dwelling approval.
    • Dual occupancy for a greenfield estate: If you are in a greenfield estate, you will need to check whether there is a single dwelling covenant (meaning you cannot build a dual occupancy dwelling). It is often not worth the investment, for the lower resale you will get in these locations, this is why dual occupancy home designs are more commonly for knock-down rebuilds.

    Design tricks for a dual occupancy

    When planning the arrangement of the spaces in a dual-occupancy house, you have to work with some constraints due to the fact that the footprint of the house is restricted, which is one of the factors that contributes to the complexity of the design process. It is critical to make the best choice possible while constructing a duplex. Check out our range of the best home design constructions at Hitch Property Constructions. MJS Construction Group.

    Some spaces need to be on the ground floor and therefore, will take up precious sqm of your house footprint. Therefore these spaces need careful consideration.

    • Consider a single garage instead of a double
    • Include the office, laundry and powder room next to the garage.
    • Place the stairwell above the pantry (you can't waste valuable space with wide stairs in the centre of the house)
    • Move the kitchen to an internal wall to increase window space

    You need to make sure that you have a complete understanding of all of your choices before you settle on a choice by conducting some preliminary research. Think about the advantages of taking this route; search online to see what designs are offered, and then start having conversations with builders who specialise in dual-occupancy residences to get a sense of what you can construct within your financial constraints.

    When it comes to bank appraisals, dual occupancy buildings might be challenging because they are not particularly widespread at this level. The value of the property is determined by both the value of the structure and the value of the land. Therefore, valuers don't take into account the fact that there are two separate dwellings on the property, despite the fact that we believe the value to be fairly high. For illustration's sake, the house with the five bedrooms and three bathrooms that we discussed earlier would be valued just like that. Whereas in actuality, it is meant to be two separate properties, one with three bedrooms and two bathrooms, and the other with two bedrooms and one bathroom, which is anticipated to have a greater value.

    New houses designed for dual occupancy are frequently built by contractors as two independent dwellings, each with its own set of utilities such as an electric metre, a water metre, and a hot water system. Because of this, the construction process will take longer and demand more resources.

    As a result of this mismatch, in order to obtain financing, it may be necessary to give a larger deposit or more equity than was originally anticipated. If you're looking for a high-quality, affordable builder in Melbourne, you're in the right place! Check MJS Construction Group!

    However, this additional expenditure is likely to be recouped over the years of ownership by an investor in the form of improved cash flow if the investor is able to afford it. We may anticipate that by the time they sell the property, the true worth of properties with dual occupancy will be acknowledged all over the market, and that they will be able to reach a sale price that takes this into account.

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