Building Lifestyle Through Investments

Dual Occupancy Homes And Why You Should Consider Them

by Nov 4, 2021

If you are thinking of acquiring a block of land, dual occupancy is regarded as the most affordable way to produce the best return on your investment.

This article will outline some of the benefits of building dual occupancy on your land and we’ll share some tips on who you should partner with for the project and where you should build to maximise your property income.

 

What’s a Dual Occupancy home?

What’s a Dual Occupancy home

The website for Acrow Investments answers this question as outlined here. The New South Wales state government defines dual occupancy as:

“two separate dwellings on a single plot of land, where the two homes may be adjoining or each completely free-standing”.
This has advantages over a granny flat, as a dual occupancy home can be larger and the two homes may be separate, unlike a duplex with a common wall.

 

Why Dual Occupancy?

Why Dual Occupancy

You could build a single wonderful house on your land. Why should you consider building dual occupancy?

When you have a dual occupancy block of land, some of your options are:

  • Multi-Generational living

    • You may live in one of the homes while family members live in the other. Whether you have growing children or elderly relatives the benefits are similar:
      Independence – your family have the independence of living in their own home
      Peace of Mind – you are steps away. If there is an emergency or even if some assistance is needed, you can be there almost instantly.
      Security – Your family are your nearest neighbours. You will help to keep an eye on each other’s homes.
  • Increase in land value

    • The future resale value of your land has greatly increased now you can sell two homes instead of one.
  • Sell one, live in the other

    • You will need to subdivide the land, effectively creating two separate plots which can be owned individually. An immediate sale of one of the properties probably won’t cover the entire cost of the build but will bring in enough to make the house you are living in a bargain home!
  • Generate an additional income stream.

    • By becoming a landlord you will receive an additional income from rent.

Rental Income

Congratulations, you are now a successful property investor!

The additional income from the property you rent out will help cover your building costs.

  • Live in one, rent the other

    • Living right next door means you could save on the expense of hiring a property management company. Arrange for your rent to be paid via direct debit and conduct regular property inspections whenever is convenient for you. If any urgent repairs are needed, you can be onsite quickly and possibly do your own maintenance and repairs.
  • Rent out both

    • This strategy, having the entire block of land as an investment, would maximise the returns on your property investment. You will have doubled your additional income. If you have built your property in a region where rentals are in demand, you may earn enough from your property income to cover the repayments on an interest-only mortgage. This would instantly generate profit on your investment!

Income opportunities

Whether you have decided to generate income from one, or both, of your new homes, you have a number of options available to you:

  • Tourism

    • Depending on where your land is located, you could take advantage of the tourist market, via a scheme such as Air BnB or Stayz. This gives the benefit of you deciding when you want tenants in your rental property. You could leave it empty for your own privacy, now and then, or invite family or friends to visit, staying in their own property!
  • Permanent tenants

    • Popular options for renters are:
      1. City workers
      If your dual occupancy is in a desirable location and within commuting distance from a city CBD, you could tap into this lucrative part of the rental market. The advantage of this target renter is they may be well paid and will often be away working for the whole day, leaving you with the whole plot of land to enjoy!
      2. Families
      Assumes your rental property has more than one bedroom and you are in an area with schools and parks.
      3. Students
      If you are within a university town, students are popular tenants because they are often working hard and they take long holidays, while still paying rent, to ensure they have a property to return to.

The best location and partner

Acrow Investments are highly regarded house builders covering the Central Coast region of NSW.

The Central Coast is a wonderful region to live in for lovers of the outdoors and watersports, families and city commuters. Proximity to Sydney and Newcastle, plus the idyllic waterside lifestyle and friendly community spirit make the area a superb location for an investment property with an average rental income of $500 – $600 per week, per property!

Acrow Investments have hundreds of delighted customers across the Central Coast. We understand the area and build homes that fit in and complement the location. We work with you to design and construct your dream and our homes are popular with the rental market.

Don’t delay. Contact Acrow Investments today and ask us about building your dual occupancy property.

For more information 

 

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