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Dual occupancy homes, featuring two separate dwellings on a single plot of land, have become an increasingly popular housing option in Australia. These high-density living arrangements offer numerous benefits for homeowners, investors, and renters alike, including optimised return on investment (ROI), flexible living options, and increased property value. Let’s dive into the benefits of dual occupancy homes and explore why they are gaining traction among Australians.
In recent years, there has been a significant shift in housing preferences, with more Australians gravitating towards urban areas while maintaining close ties with their families. This trend has led to the growing popularity of dual occupancy homes, also known as duplexes or multi-generational homes, particularly in major cities like Melbourne and Sydney. These properties cater to various demographics, such as students, young professionals, and seniors who may need the security of younger family members nearby.
Dual occupancy homes come in various forms, each with its own potential for rental income and appeal to different demographics:
Dual occupancy homes make sense for investors who wish to demolish an old building and construct two dwellings on the site, rather than spending more on remodeling the older dwelling. Additionally, investors only need to work with one building and design team for their project. Tax benefits and stamp duty savings are also available, as investors typically only need to pay for the land itself.
Compared to traditional single-dwelling homes, dual occupancy properties require additional custom design and construction considerations, as well as council approval and zoning permissions. These homes usually require sufficient noise insulation, privacy, and individual comfort capabilities, such as extra ensuites, bathrooms, storage, and living spaces.
The best sites for dual occupancy homes are quiet suburban streets within easy reach of infrastructure and amenities, such as train stations, schools, and tertiary education institutions. These locations tend to be attractive to potential buyers and renters interested in dual occupancy living arrangements.
Dual occupancy homes typically provide higher rental yields compared to single-dwelling investments. For example, a site with one dwelling might attract a weekly rent of $750, while each dual occupancy dwelling on the same site could earn $600 per week, resulting in an additional $450 in rent per week. If land is large enough, its value is likely to increase more quickly than a standard apartment in a large complex where land value is significantly divided.
Investing in dual occupancy properties also offers greater flexibility when buying and selling. Investors can retain residency or title while simultaneously selling or leasing out at least one of the dwellings.
Dual occupancy homes offer numerous advantages for homeowners, investors, and renters alike. Their growing popularity in Melbourne is a testament to their ability to cater to various demographics and provide optimised returns on investment. With careful planning and the right builder, dual occupancy homes can be a smart and profitable investment for the future.
If you’re considering the benefits of dual occupancy properties and looking for custom home builders to help you get started, consider booking a call with Yorcon to discuss your options.