The Benefits Of Considering Dual Occupancy
Homes are typically designed and constructed for a single family. However, with increased demand for land and a growth in population, the “Australian Dream” is now changing. Many home owners are moving towards the clever decision to split their block of house land in half and build a duplex, using only half their block of land. This savvy move can create many benefits both financially and personally, which builders are happy to make plans for. Let’s take a look at some of those benefits.
Future Real Estate Options With a Duplex Design
Duplex designs provide home owners and investors multiple opportunities. First, the financial benefits are incredible, subject to land purchase value and construction costs. Home owners and investors alike have generated large profits from building a duplex on their block of land and subdividing the lot. With clever design and planning, many average sized blocks can fit five bedrooms and generous, open plan living areas with large modern kitchens, walk-in pantries and functional dining spaces. With such inclusions, it’s no wonder the affordable housing option of a custom dual occupancy in Sydney is booming! Once complete, there are a number of options available to you, including:
- Renting both or only one unit, while living in the other or;
- Renting one unit out to family members and living next door and;
- Selling one or both to make a double profit from investment.
Financial Ease Offered By Dual Occupancy Homes
For a homeowner, there’s no better way to monetize a house than to have it rented out. A single-family home might not be as effective when it comes to being rented out. A duplex house, on the other hand, is best suited for tenants. The additional cash that will be generated through rent will make the overall property a lot more cost-effective than it is to own a single family home. The cash generated could be used for other expenses, like it can help paying off the mortgage which is a great thing.
Even if you don’t clear the mortgage, the interest accrued due to a longer payment time will decrease significantly. You would also be able to closely monitor the condition of the rented unit since it is adjacent to yours. You can ensure that your house is in good condition at all times.
A Good Way To Address A Unique Living Situation
In the event that you have family members that you need to closely monitor, say your elderly parents or grandparents, you can easily do so with Duplex Designs. Since there are two living units, you will not have to worry about invasion of privacy and other similar problems.
The family members living on the other side could live independently with easy monitoring. The wellbeing and safety of an elderly loved one would no longer be such a burden. You can also receive the latest news concerning them since you can easily pay a courtesy call as often as you like.
Work with a team of experts,
that you can rely on.
Gives You The Opportunity To Be A Landlord
Being a landlord gives home owners a first-hand insight and view of the reality of being involved in real-estate and development for investments. Although it may sound like another burden, being a landlord can be a great learning experience as well as a smooth one if the tenants are selected carefully. You can start as a duplex owner and get promotions towards owning a single story or double storey development of the correct size. Then you can find the next project to work on.
You’ll Get Tax Benefits For Owning A Duplex House
There are many tax benefits involved with a dual occupancy, particularly when it is an investment property. This means you are able to claim back greater amounts than you could have if the allotment only contained a single family home. Maintenance costs of the rented unit are all tax-deductible, which means you can get a chunk of your tax taken away. This information should be taken as a general guide, and independent advice should be obtained as finances and situations vary.
Consider Council Regulations & Likelihood Of Approval
Before engaging the services of an architect, builder or building designer, please make sure they outline the likelihood of approval and take you through the basic controls applicable to the development. This is a key factor as you search for testimonials on a potential contractor.
Local Council’s vary greatly, with some stipulating more onerous controls than you might think, including but not limited to lot sizes, floor space ratios, frontage or lot width, setbacks, storm water engineering policies and even subdivision regulations. A great first step would be to visit your local Council and discuss the controls applicable and see if your ideas would still be feasible. We’re more than happy to take a look at your site and offer a free 15 minute consultation on the likelihood of approval for you!
A critical step in the process is ensuring you are able to service your loan. Independent advice should be obtained so you can determine your level of borrowing as well as the available loan packages. However, we do like to point out that building a duplex can be costly and average prices can range from $800,000 plus GST. This kind of cost can typically achieve a four bedroom duplex with medium finishes subject to site costs, site accessibility and design factors too.
Overall, a modern duplex design can achieve many benefits that most home owners would be happy to enjoy. From personal to financial benefits, this could be the perfect option for you as a new investor or a mum and dad home owner. Contact our team and let’s get started on your project today!