Dual Occupancy Properties
Dual occupancy is a residential area where two homes sit on a common lot. This arrangement has two occupancy types: attached and detached. Regardless of the arrangement, the property owner cannot sell dual occupancy separately. Sometimes, a dual occupancy lot area is smaller than a duplex lot.
Industry experts interchange dual occupancy with dual key property. Extended family members usually reside in the attached or detached portion. Other homeowners prefer to use the other half of a dual occupancy to earn passive income through monthly rental fees.
Key Learnings:
- Dual occupancy cannot be divided into two unique lots.
- Tenants can pay for utilities and leases separately
- Dual occupancy can have solitary or separate entrances.
- Both units are complete residences.
Duplex Properties
A duplex is a residential arrangement where two separate units are placed under one bigger unit. A resilient, soundproof wall usually separates the smaller units, which have two unique entrances and similar floor plans. A duplex usually occupies a larger lot than dual occupancy arrangements.
A duplex is a versatile setup. Homeowners have several options to choose from:
- They can own a duplex with the same title.
- Alternatively, they can own a strata-titled duplex, where each unit has two separate titles.
- Homeowners can rent out both units. They can also live in one unit and rent out the other.
- Homeowners can also sell both properties separately.
A duplex property’s expenses usually include:
- Council planning and application fees
- Surveying
- Utility connection payments
- Water and sewage infrastructure charges.
The Primary Differences Between Dual Occupancy And A Duplex
Industry experts sum up the difference between dual occupancy and duplex in one word: simplicity. The former arrangement suits homeowners who prefer a simple, affordable lifestyle.
Despite higher living expenses, a duplex offers residents more versatile living arrangements.
Here are the notable differences between dual occupancy and a duplex:
- A duplex offers more living arrangement options, including ownership on a single or two separate titles, renting out one or both units or selling both living spaces.
- A duplex sits on a more extensive land area than a dual occupancy.
- Living in a duplex requires higher costs, including surveying, application fees, and utility connection charges.
Key Learnings:
- Land can be divided into two smaller parcels.
- A strata-titled duplex allows two separate titles.
- Both dual occupancies and duplexes are two separate units separated by a common wall.
- Both living arrangements are complete homes.
The Advantages Of Purchasing Dual Occupancy And Duplex Investment Properties
One primary advantage of purchasing a dual occupancy or duplex investment property is receiving rental fees for two living spaces instead of just one. The setup allows the owner to receive regular, passive dual income. The returns are significant because the combined rental fees are usually greater than renting out a single property after deducting holding costs.
A duplex investment property also offers flexible living arrangements: you can live in one dwelling while renting out the other. A substantial rental income could cover the mortgage on both properties and allow you to purchase the property earlier than anticipated. You can also share maintenance costs with a tenant, drastically reducing these expenses.
Builder-investors can also earn profit from a dual occupancy or duplex arrangement. They can earn rental fees from either setup, similar to profit from two isolated houses on separate blocks. However, the former arrangement offers remarkably lower land and construction expenses.
Granny Flats
What is a granny flat?
A granny flat is a detached abode from the main dwelling under the same title. In most cases, it’s an extension and a smaller version of the primary residence. Many occupants of these abodes are elderly Australians, hence the term “granny flat.” Residents with ageing parents or grandparents usually build a granny flat on their properties. That arrangement allows them to look after their ageing relatives while giving the latter some independence.
Granny flats aren’t exclusively for older people. Property owners can earn passive income from renting out their granny flats for various uses, including home offices and vacation houses.
Granny flats typically consist of the following components:
- One bedroom
- One kitchenette
- One living area
- One bathroom
Dual occupancy Vs. Granny Flat
The primary differences between dual occupancies and granny flats include the following:
- Freedom: Dual occupancy features two independent units, with the possibility of separate ownership. Conversely, a granny flat is an extension of the main housing unit.
- Versatility: Dual occupancy offers property owners more income and development opportunities. On the other hand, granny flats are more restricted—people often use them for precise conditions, such as living spaces for ageing individuals.
- Income potential: Property owners can earn more money by renting out or selling both units of a dual occupancy property. Although granny flats make the property more appealing, buyers or tenants usually consider dual occupancy more attractive and feasible.
If you’re involved in the dual occupancy vs granny flat debate, your decision will hinge on your lifestyle preferences, including living arrangements and income potential.
Key Learnings:
- A granny flat is an extension and smaller version of the primary residence.
- Both units are included in the same property title.
- Property dimensions play a significant role.
Granny Flat Construction 101
Australian law requires the granny flat’s land area to measure at least 450 square metres and the size of the unit to not exceed 60 square metres.
The primary residence must feature off-street parking. Australian law requires only the main dwelling and the granny flat to exist on the same property. It also disallows subdivisions upon completion of the granny flat.
Is A Granny Flat The Best Option For You?
Granny flats are popular among Australians because they suit senior citizens or adolescents who crave independence while staying close to their families. Depending on homeowners’ preferences, they can also earn extra cash by renting out granny flats short- or long-term.
These three living arrangements have appealing features and characteristics to home buyers and investors.
Do you plan to maximise your property’s features and return on income potential? Are you building a family residence and considering another unit to spread out your options in the future? Regardless of your preferences, you can use these unique, cost-effective alternatives.
Unique Built has been designing and constructing stunning, resilient, and cost-effective duplexes in Southeast Queensland since 1996. Our team of highly skilled and reliable duplex builders Brisbane and duplex builders Gold Coast can help clients build the best duplexes that meet their unique preferences.
Please call us on (07) 5535 0000 during AEST business hours, Monday through Friday, to discuss your duplex requirements.
