As house prices continue to skyrocket across Australia and land becomes more scarce, dual occupancy developments are soaring in popularity. If you're new to the world of home construction and dual occupancy is a foreign term, we're here to guide you every step of the way, designing and building the right home/s for you and your land.
Whether a dual occupancy development has been on your radar for a while or it’s a concept recently added to your building repertoire, it can be an attractive proposition for investors, downsizers, and upgraders alike.
What is dual occupancy?
In a nutshell, a dual occupancy development (also known as DualOcc) involves the subdivision of land to build two or more homes on a single block. The dwellings can be either attached or detached – the latter is sometimes referred to as a duplex, or a ‘semi-detached’ if you’re from a British background.
The versatility of dual occupancy gives you the option to live in one, sell one, rent one, rent both or even sell both, depending on where you’re at in the real estate cycle.
So, why build one home, when you can build two (or more)?
A dual occupancy project can be a great development strategy for first-time investors looking to dip their toes in the water, downsizers who want to continue living in a neighbourhood they love while maximising the potential of their land, or more experienced investors who want to boost their property portfolios.
They are also a great option for those who want to provide a home for extended family members to keep them safe and close by, or for those looking to accommodate adult children who need a little extra space.
It can be an excellent way to liquidate the hidden asset in your backyard. If you subdivide your block and build, you could sell the new home to pay down your mortgage or use the money to invest elsewhere.
These developments can make a great investment choice as there is better opportunity for positive cash flow through increased rental yield and rental income. A DualOcc investment can help to reduce your risk (if one tenant falls out, you have another income to help service the loan) and increase serviceability with banks, as there is usually a much larger income stream.
Getting started
First up, you’ll need to find a block of land large enough to accommodate more than one dwelling (or have a feasibility study completed on your existing land), in an area that allows DualOcc developments. State and local council regulations can differ from area to area, as can the builders of dual occupancy homes. For instance, Metricon’s DualOcc designs are currently available in Victoria, New South Wales, Queensland and South Australia.
Once you have found the land, you must decide on a suitable DualOcc design. Depending on your location, you may choose to build side-by-side dwellings (duplex), or it may be more practical and provide a better return on investment to build multiple dwellings, one after the other, down the length of the land.
Our team currently offer a free site appraisal to find a solution that works within the local planning laws and maximises the development potential of your land. While there are a number of other considerations that come into play, you can relax while our DualOcc specialists take care of the hard work.
What is the minimum block size typically required for a dual occupancy build?
The rule-of-thumb laid out by town planners, for proposed multi-dwelling residential homes in a General Residential Zone, is ‘300 m2 per dwelling’. Therefore, generally speaking, the minimum area of a block of land to be considered for subdivision would be 600 m2. However depending upon the site and factors such as easements, driveway requirements, significant trees and restrictive covenants, subdivision may be done on smaller blocks or alternatively, require more than 600m2.
DualOcc developments offer an exciting opportunity for investors. Contact Metricon for a site appraisal to discover how you could unlock your wealth today.
