A dual occ home is also referred to as a multi-dwelling, a duplex, or a complex that has two units side by side. While maximizing the potential revenues from a property parcel, these living options provide investors flexibility and freedom like New South Homes Australia. These properties are combined under one title and offer higher investment returns than two individual homes.
The 1920s and 1930s saw a rise in the popularity of dual occupancy home designs. They were made to seem like single-family homes and blend in with the neighbourhoods where they were being constructed. By providing the road with a unified image, city planners are also actively working to safeguard property values. Dual living has now developed into a viable and affordable housing solution.
Dual Occ Property Types
Duplex: A duplex is a pair of properties with adjacent or shared walls. It is a house that has been split into two different homes that can each be sold independently.
Dual Occupancy: Similar to duplexes, dual occupancy shares a common area but not a common wall.
Dual-key property: This is a home with a regular front door and possibly an additional living area, such as a living room or kitchen. The home has a lockable room that is leased to another person.
Benefits of a Property with Dual Occupancy
Equity Uplift: If a developer decides to construct two residences on a single lot, they have the option of giving each one a familiar title or dividing it into two titles. Let’s say the developer chooses to divide the property into two separate lots. In such instances, building two homes and selling them separately results in a significant equity increase.
Benefit from Providing Two Rental Incomes: If the developer divides the dual occupancy and retains it, they gain from producing two rental incomes. Usually, the premises are used as a joint venture, housing two different tenants in one building to generate two streams of income. This method also reduces the possibility of vacancy.
Better Cash Flow: Properties with dual occupancy are classified as specific income-arranged properties. When two apartments are rented together, a profit is generated that enables the owner to pay for expenses. Such as interest payments, insurance, property management, and other costs.
Size of Land: The land continues to be used for speculative real estate. A dual occupancy home will likely require a sizable block of land. Since land values rise over time, the duplex enterprise benefits from this fact.
Stamp duty: The buyer of a property is required to pay a sizeable sum as stamp duty. The stamp duty is assessed on the land and not the building when purchasing a dual dwelling home, resulting in considerable savings.
Affordable strategy: Building on the land you already own and constructing a home that better matches your needs may be more cost-effective than moving given the recent 20% increase in capital city property costs.
Conclusion
When a block cannot be divided, dual occupancy is great; but, if you require two homes on one side, it offers many benefits of division and permits two self-sufficient dwellings. Dual occupancy is known to have financial benefits, but having multiple residences also has the potential to cause more stress and extended time. Find a developer who can handle the entire interaction and is familiar with the difficult Dual Occupancy planning and approval process to ensure a problem-free form.
