Investors and homeowners alike are showing a growing interest in purchasing properties that feature more than one living space. Dual Living gives a possibility for investors to get two rental incomes, which means that the property should be positively geared. Dual Living is also known as dual occupancy. Homeowners have the ability to use the additional revenue from rentals to pay down their mortgages more quickly, which results in a lower total amount of interest paid over the life of the loan.
What is 'Dual Living'?
A dual living dwelling is essentially two entirely independent houses that are built under the same roof and are owned by the same individual. Each 'dwelling space' has its own unique street entrance, distinct address, separate front doors, separate kitchen, separate bathroom, separate living areas, and separate gardens. All of the utilities, including electricity, water, and gas, as well as the NBN, are individually installed in each individual dwelling; the invoices are sent to the relevant address.
The contemporary method, on the other hand, gives the impression of a single dwelling from the street and utilises a single roof. In most cases, one living area is significantly larger than the other (3 or 4 bedrooms), however this is not always the case (2 bedrooms)
Dual Living refers to the arrangement of two independent residences on a single parcel of land, which are typically partitioned by a party or fire wall. There is often one larger dwelling that has all of the features of a typical home, and the second dwelling is typically a "unit" that has between one and two bedrooms and a kitchen, living room, and bathroom that are all on the smaller side. Are you thinking about giving your home a makeover? No need to look any further! MJS Construction Group is here to assist you with any dual occupancy builder needs you may have in Melbourne.
Why Dual Living?
In addition to increased cash flow, dual Living has;
- cheaper build costs compared to a duplex or two separate dwellings
- Purchase only one block of land
- lower maintenance costs
- one set of rates / no body corporate fees
- lower risk - if one property is vacant for a certain period, there is still an income from the other dwelling
What is multigenerational and dual Living?
Both of these unique solutions require a substantial number of people to cohabitate within the same physical space.
Living together in one house by members of three or more generations is what we mean when we talk about multigenerational living.
Dual Living, on the other hand, refers to the arrangement of a single house with multiple dwellings so that it can be occupied by two separate families or tenants at the same time.
When a homeowner decides to turn their home into a property that can accommodate two households simultaneously, there are a number of logistical and legal factors that must be taken into account.
A growing worldwide phenomenon:
Families who are having trouble making ends meet often look into the possibility of living in a multigenerational household, which is becoming an increasingly popular choice. This is owing to the ever-increasing expense of living, which makes it exceedingly difficult for younger generations to venture out on their own.
Sandy Geffen, Executive Director of Lew Geffen Sotheby's International Realty, who has more than three decades of experience working in the real estate sector, believes that South Africa is not immune to this trend.
According to Geffen, "young adults are living with their parents for longer," affordable housing for retirees is in scarce supply; "homeownership is routinely delayed for years as young families," and "first-time buyers now have to save for larger deposits;"
According to the most recent Census, little over fifty percent of the country's households include more than one generation of residents. According to the findings of a survey that were published in Time Magazine in November of the previous year, it was found that more young adults in the United States (aged 18 to 34) are living with their parents currently than at any time since the year 1940.
According to Geffen, local real estate brokers have reported a discernible rise in the amount of inquiries regarding the availability of residences that are suitable for accommodating large families.
The benefits of this type of arrangement:
Because of the state of the economy, many people are finding that they have no choice but to pool their resources in order to survive. Despite this, Geffen argues that this particular structure might have some positive outcomes.
"There is always a silver lining to be found in any challenging situation, and in this instance, there are several, even if it's a case of three generations squeezed into one not overly large home," the author says. "In this case, it's a case of three generations squeezed into one not overly large home."
It may be possible to alleviate some of the financial strains that come along with homeownership by sharing household expenses. One more way to improve one's quality of life is to move in with roommates. It has the potential to fortify the ties that bind a family, which is especially important in this day and age, when the nuclear family unit is becoming less common.
According to Geffen, multigenerational living can provide solutions to the day-to-day issues that are experienced by modern homes.
According to Geffen, "few families can afford to have a parent stay at home today, and many are finding it difficult to cover the costs of childcare; therefore, the requirement for care for both grandkids and grandparents can be addressed in a fashion that is seamless."
Living in a home with multiple generations has additional advantages, one of which is increased safety and security. When there are more people living under the same roof, it is highly improbable that the house will be vacant for significant portions of the day.
When compared to elderly family members who live alone, those who are part of a shared household have a far lower risk of becoming susceptible targets of criminal activity.
The challenges of multigenerational and dual Living:
According to Geffen, it's important to consider the challenges that can arise when embracing this style of Living. A shared household can include different needs and expectations that can become problematic if not managed correctly.
Geffen advises that "planning, flexibility and ground rules are essential to make it work for everyone in the long term because unless all parties buy into the household ethos, it can go wrong." MJS Construction Group has the best range of dual occupancy builder services to help you create your dream house.
An essential guideline to avoid the pitfalls and maximise the benefits:
- It's important to define each person's responsibilities and any particular requirements upfront. Consider if additional care and assistance are needed by inhabitants and to what extent this needs to be implemented.
- Set boundaries to be decided upon together and ensure every household member mutually respects these.
- Choose your battles wisely – general disagreements may arise, but not all are worth a full-scale argument.
- It's important to allow sufficient time and space away from each other to avoid becoming overwhelmed.
Dual Living with tenants:
For cash-strapped homeowners and prospective buyers, dual Living with a paying tenant is a smart way to stretch their budget in order to pay off a home loan faster or make a purchase in a high-demand area.
According to Geffen, it also enables first-time buyers to enter the market sooner. "It might take a bit of time to find the right property, but it's worth the effort in the long run." See our list of available builder services melbourne to help you make an informed decision for your treatment.
Dual Living can fund retirement:
Only about 9 out of every 100 pensioners in South Africa can say they are completely self-sufficient financially. Because South Africa has one of the worst records for saving money in the world, Geffen recommends dual living as an ideal approach to assist fund retirement savings. This recommendation is based on data provided by the Reserve Bank of South Africa.
"When times are rough economically, younger homeowners who also have rental income can save more. On the other end of the spectrum, retired individuals who are still physically active have the option of prolonging the amount of time they spend in their own houses by renting out portions of those properties to cover their ongoing monthly needs "says Geffen.
Establishing privacy in dual living arrangements:
In order to achieve successful dual Living, it's important to ensure inhabitants are able to enjoy a measure of privacy.
By considering everyone's needs and requirements within a household, homeowners will be able to establish whether a separate, self-contained dwelling would be most suitable for everyone or if altering an already existing structure would suffice.
According to Geffen, this applies to current homeowners and prospective buyers looking for conversion properties.
The building of separate dwellings:
"If you want to acquire land and build a separate residence on it, it is vital that you first check to see whether or not you would get planning clearance from the local authority before you leap. In addition, regardless of whether you intend to separate the building or convert it, you should always get the advice of a qualified architect who can draught drawings that do not violate any local ordinances or zoning rules.
Before moving forwards with plans to buy land and construct a separate dwelling, it is essential to determine whether or not you will be granted planning approval by the local authority. Regardless of whether you plan to convert an existing structure or build a new one, it is imperative that you seek the advice of an experienced architect. You may assure that the building designs will not violate any bylaws or zoning requirements if you work with an architect to coordinate your efforts.
In the long run, it will be to your advantage to make certain that the building of the detached housing is carried out in the appropriate manner. If you try to save a few rands by cutting costs, it could end up costing you more in the long run. Additionally, if you wish to sell the property at a later point, the selling procedure could be delayed if the structure of the property does not fit the initial property design.
Why you shouldn't overcapitalise:
The most typical mistake that homeowners make is overcapitalizing their properties. In order to avoid this, Geffen emphasises the significance of carrying out exhaustive research in order to acquire an understanding of the regional market. You will be able to obtain helpful advice on rental price options and market trends in your area by consulting with a competent real estate agent.
Doing so will help to guarantee you don't overcapitalise, which can lessen a return on investment if the costs outweigh the revenue.
Geffen concludes: "Dual living makes a lot of sense in the current economy, whether you want to offset the rising expense of living or generate a new revenue stream. Dual living makes a lot of sense in both of these scenarios. If executed effectively, it offers many more benefits than problems and will add substantially to the value of your house when you eventually sell."
Two Separate Incomes From One House Project
When you build a dual Living house, you are effectively building two opportunities under the one roof, and you can do as you wish with them when built:
- Rent both separately to different tenants and have two income streams;
- Live in the smaller whilst a tenant contributes good rent towards your mortgage;
- Live in the larger whilst a tenant helps you pay off your mortgage;
- Change your mind or strategy over time between the above options.
Higher ROI On The Last $100K
In comparison to dual Living, constructing a conventional house can be an excellent strategy, and it will help you save money. The typical house is still the most popular housing choice, and increasingly more of these are being constructed. When you switch to a dual living concept, you will need to carefully select a block that requires a wider frontage and needs to have fairly parallel sides to the block. This is because the addition of a second living area either makes the overall building wider, deeper, or both, depending on the design you choose for the building. Planning to build a home? MJS Construction Group brings your building project alive!
However, one thing is often accomplished: the additional about one hundred thousand dollars will accomplish a "greater bang for the buck" of leasing! A straightforward illustration of this would be a house with four bedrooms that costs $500,000 but only brings in rent of $430–$450 per month. The addition of the second house will increase the value of the property by around $100,000 and will bring in approximately $230–250 per month in rent.
A Different Property When It Comes Time To Sell
Just as you may consider Dual Living, so might a purchaser in the future. They will have the same benefits that dual Living offers you. Someone may be able to afford to buy your house because they can offset their mortgage with the rental income: you might get a sale where someone else misses out.
In modern developments, most blocks may not be able to fit Dual Living, and a percentage of people buy Dual Living, and many builders do not offer the option. So the number of Dual Living houses in any area is limited. It gives you a unique solution.
You Might Get Higher Tax Benefits & More Capital Growth
In every instance, your circumstances are something that must be taken into consideration: the Dual Living option is typically going to be positively geared, which means that it does result in a tax bill because the income from rental exceeds the outgoings, but it also depreciates on a higher value and may separately incur costs. While it is true that this is a result of purchasing a more expensive package, it is critically vital to note that the additional expense you are spending is predicated on an additional cash flow becoming accessible.
Two Homes For The Price Of One
Although the idea of having numerous houses on one piece of property is not a novel one, the costs associated with doing so are typically rather high. For example, if you want to buy a duplex, you will either have to pay for a separate granny flat or the cost of two properties.
The primary distinction between duplexes and homes designed for dual occupancy is that the latter feature two separate dwelling units on a single parcel of land, while the latter feature only requires a single mortgage payment. In spite of the fact that dual living properties cannot be subdivided and hence cannot be strata-titled, their prices are on average about $100,000 lower than those of duplexes.
You will still be able to enjoy all of the advantages that come with having two rental incomes, in addition to receiving better returns. Dual living homes are able to be created with separate entrances and separate utilities, making them totally autonomous properties that may be rented out independently.
They will share the same roof like a duplex does, but because they are not strata-titled, they are considered a single property. This results in a reduced purchase price as well as fewer expenses, such as lower water rates and rates levied by the local government. Finding the right duplex build is an important decision. Check out our range of the best home design constructions at MJS Construction Group.
The opportunity for positive gearing that dual-living residences provide is one of the most compelling selling advantages that they provide. The majority of purchasers are investors, and it is not difficult to generate a positive cash flow from the property.
If the above arguments have not been persuasive enough to persuade you of the advantages of dual living homes, perhaps the potential savings on the cost of maintaining them will do the trick. The ever-increasing fees and rates that investors are required to pay throughout the course of the fiscal year is one of the most significant barriers to keeping onto an investment property. Dual living properties eliminate this barrier, which is one of the most significant difficulties.
From the outside, dual dwelling properties have the appearance of a typical family home; the only giveaway is the presence of numerous letterboxes. Due to the fact that the property is held under a single freehold title, there are no body corporate expenses associated with the property, as there are in the case of duplexes or flats. Additionally, you are only responsible for paying one set of council and water rates for the property.
It's a significant amount of money—thousands of dollars a year—that you won't have to worry about spending now thanks to this tremendous financial savings. It is without a doubt something that increases the magnitude of your positive gearing and ensures a prosperous and secure future for your property investment endeavours.
Easy Conversion To A Single Property
The outdoor living areas of dual key residences are designed to be fully separate from one another, including the backyard space and the clotheslines. They are fully autonomous residences in the sense that they each have their own garages, laundry rooms, kitchens, and indoor living areas; the only thing that connects them is a shared roof and a firewall.
The term "dual occupancy" has been gaining popularity in recent years as more people have discovered the advantages of constructing two dwellings within the same physical footprint. Perhaps you are purchasing your first home with a close friend or a sibling, and while you are content to split the monthly payments on the mortgage, you are each in need of your own personal space. You may even be looking for a way to earn additional revenue with the help of an independent space that you can rent out to people using Airbnb, students, or workers that commute via FIFO. This article will help you make a decision about home building construction. Here at MJS Construction Group, we’re committed to building homes that take care of all of you.
No matter what your reasons are for wanting to share housing, you could end up saving money and getting more for your money by doing so. And even if moving in with a roommate isn't on your immediate to-do list, preparing your new house for the possibility that your living situation could shift in the future by incorporating architectural elements that are conducive to dual occupancy will help future-proof your investment.
So how do two homes in one work? Separation is key.
- Having independent entries into the home is a practical design feature that enables everyone to come and go as if they were in a separate home. This could be as simple as swapping windows for sliding doors in the bedroom, providing the room can be easily accessed from the street.
- Making the bedroom in the independent zone big enough for a small couch, and maybe even a desk, so that it becomes more of a studio space.
- The addition of a kitchenette in a second sitting room – maybe one that adjoins the bedroom – would further increase the studio vibe.
- A space in the kitchenette just big enough for a washing machine would complete an independent set-up.
During challenging economic times, there has been an increase in demand for creative housing options such as intergenerational living and dual living, both of which have been shown to be advantageous.
People are being encouraged to discover alternative ways to assist support their households as a result of the current unfavourable economic conditions. Dual living, which provides a rental revenue stream, and multigenerational living, which helps decrease costs, are both becoming increasingly common across the world as a trend that is gaining in popularity.
Frequently Asked Questions About Dual Occupancy
A dual living dwelling is essentially 2 completely separate houses built under the one roof, with a single owner. Each 'living area' has its own street entrance, different address, separate front doors, separate kitchen, separate bathroom, separate living areas, separate garden.
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.
A duplex which has two dwelling units in one building) – ThreePhaseEel. Aug 13, 2021 at 3:43. Absent a local zoning definition you'll have to consult definitions from each agency or organization that you are dealing with.
Simplex apartments occupy only one level in a sectional title development, meaning it is a term used to describe regular flats in apartment buildings. Duplex apartments are multi-family homes that have two units in the same building and share a wall between each other.
Duplexes are good investment options and have more benefits to offer, compared to apartments or villas. MakaaniQ tells you why it is best to purchase duplex houses, despite their cons. Privacy: No one has been ever disappointed with more space. Duplexes clearly promise complete comfort for the residents.