Is Building a Dual Occupancy Home the Right Choice for You?
If you’re considering investing in a dual occupancy or duplex home, it’s important to do your research first. There are so many benefits to choosing a dual occupancy design but but it's also important to assess whether a dual occupancy home suits your lifestyle and your property investment goals. Whether you want to accommodate a close family member or earn a passive income through renting, a dual home design has a lot to offer to benefit your lifestyle.
What is a dual occupancy home design?
Dual occupancy house designs allow for shared living to occur and refers to developing two residences on the same property. You can either choose to have the two houses attached, which are connected by a dividing wall, or you can choose a detached dual occupancy design. The third option is a secondary dwelling: this design also consists of two homes on the same piece of land, detached or attached, however, the houses cannot be used for subdivision.
Dual occupancy living means that each home will have its own entrance, backyard, and amenities, sharing only the piece of land itself. The main difference between dual occupancy homes and duplexes is around land title flexibility and related costs.
What are the benefits of having a dual occupancy home?
1. Cheaper to build
With a smaller amount of land required to build a property and land costs split amongst both homes, you’ll be paying a lot less than what you could be if you were to invest in a single-dwelling property.
2. Unlock equity
Building a dual occupancy dwelling means you can unlock the potential of your property by taking equity out of your current property and reinvesting this elsewhere.
3. Build an investment property
Dual occupancy homes make a great investment opportunity. You can use a single piece of land to build two properties and sell them to make a profit or or sell one home and rent out the other to create an additional stream of income..
4. Multi-generational families can live together
Dual occupancy homes are a great option for adult children who are ready to move out of home but are struggling to get into the property market. They also allow families to stay within close proximity while having a bit more privacy than living in the same home. If you have seniors such as parents or grandparents who you want to stay close to, you can also choose to house them in one of your dual occupancy homes.
5. Great rental yield
Renting out either one or both of your dual occupancy homes is a great way to earn a passive income. You can choose to live in one and rent out the other, or rent out both if that’s more beneficial for you.
6. Offset the cost of your mortgage
Paying off a mortgage can take a long time, but by building a dual occupancy home design and renting out one or both of them, you can accelerate your mortgage repayments.
What are the downsides of choosing a dual occupancy?
1. Impacted privacy
When you’re living in a shared space with other people, whether it be your family or a tenant, there is no doubt that you will have to sacrifice some of your privacy. If this is a major issue for you, you may want to think about selecting a detached dual occupancy design or ensure you’re choosing the right person to live with you.
2. Additional costs
Developing a dual occupancy home can incur extra costs such as tax, civil engineering costs, and the connection of services, and levies. While the overall return on investment should still outweigh these costs, you should still consider the additional costs that you will encounter as a result of dual occupancy designs.
3. Selling
When it comes to selling off your dual occupancy, you will need to think about how you would like to sell each home. Some dual occupancy houses will share the same title and need to be sold together. If you would like a duplex, which requires you to subdivide and hold two separate titles, you should enquire about this in the early stages of your enquiries.
4. Council approval
Obtaining council approval for a dual occupancy home design can be challenging, especially compared to a single home build. Working with a local Hotondo Homes builder will help as they know the local area and councils well, so they can help you manage this process if any complications arise.
5. Single mirrored design
Generally, for dual occupancy developments, you’re required to choose the same design for both homes. For those who prefer to have a unique style home, this may not be suitable, so consider the available designs in your research to help you decide.
Why choose Hotondo Homes as your dual occupancy builder?
With over four decades of experience with residential developments across Australia, Hotondo Homes is the builder you can trust for your dual occupancy home. We have over 60 home builders who are locally based and have a thorough knowledge of the area, council regulations, and offer a range of designs. No matter what kind of house you’re looking to build, you can trust that Hotondo Homes is here to help you bring your dream home to life.
Whatever you have planned for your dual occupancy/duplex home design, you’re in the right hands when you choose Hotondo Homes. Our local builders will ensure that your home will suit your lifestyle, budget, and any other requirements you may have.
