The Benefits Of a 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 land in half and build a duplex, using only half their block of land. This savvy move can offer many benefits both financially and personally. 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. Firstly, 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 Sydney’s affordable housing option of a dual occupancy is booming! Once complete, the options are many, 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 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 more 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 paying off the mortgage which is a great thing. You would also be able to closely monitor the condition of the rented unit since it is just on the other side. 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.
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 to 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’ll Get Tax Benefits For Owning A Duplex House
There are many tax benefits involved with dual occupancies, mainly being 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 or building designer, make sure they outline the likelihood of approval as well as take you through the basic controls applicable to the development. 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 it seems possible to do. 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 however we do like to point out that building a duplex can be costly and average prices can be $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 also.
Overall, a modern duplex design can achieve many benefits that most home owners would be happy to have. From personal to financial benefits, this could be a perfect option for you as an investor or a mum and dad home owner. Get in touch with us and let’s get started on your project today!