Dual Occupancy Homes or better known as ‘dual occ’ are becoming increasingly popular with investors in Australia. A dual occupancy home, as the name suggests, is two properties that are constructed on the same block of land. These properties are consolidated under the same title. Some common examples of a dual occupancy property are a duplex, a granny flat, or a dual-key property. In a dual occupancy home, both sections of the house are separate, meaning you can get a property with two completely self-contained dwellings and two rental income streams.
Bayside 25 by Metricon
Investors are embracing the concept of these properties as they are efficient homes which are great for a modern multi-generational family, for their clever design and they are generally more profitable on a return on investment level.
Quick and simple, if you have never looked at dual occupancy homes before as an investment property, here are some reasons why you should consider them!
- Instead of having a single property on a large block of land, you have the advantage of utilising the space available to you. Unlike a duplex, a dual occupancy home is not able to be subdivided, which means it comes with the benefits of a reduction in building and council costs. As it is considered one single property, you only pay one set of council rates instead of two. There is no body corporate or strata fees that needs to be paid. Because you only pay stamp duty on the land and not the actual property build, it can give you an immediate saving of up to $10,000.
- Whatever your choice may be, you could live in one and rent the other, you could rent both or even sell them for a great return. This way, you can easily earn a rental income from the home that you live in and pay it off sooner. You can also reduce your own contribution to mortgage payments as the rental income is generally higher than a single residence. Dual occupancy homes are also great for people who require extra space for elderly parents or relatives so that they are close by to take care of. Investors are able to bring in the extra income by renting it out to travellers or students. The dual living concept tends to attract the student market and young urban professionals.
Grange 25 by Metricon
- Dual occupancy homes can really help investors who are working towards a cash flow positive investment strategy. Given the two income streams, the perceived value for the investor is very high and can also be a strong suit for investors who have a well-established property portfolio.
- If the land is of sufficient size, it is likely to increase in value faster than a standard apartment in a large complex, where land value is greatly divided.
If you are looking into investing a dual occupancy home and would like to discuss your options, our consultants at iBuildNew are here to help you. Call 1800 184 284 or book a call with our team today to get the help you deserve!