With the housing market in limbo, many people are looking for alternatives to traditional housing. One popular option: dual occupancy.
First things first: what is dual occupancy? Dual occupancy is a type of property where a single block of land contains two (or more) dwellings instead of one. The idea is to maximize the value of the land, which can be a great opportunity for investors.
For people looking for affordable housing, this is one of the best options on the market. Here's more on what is a dual occupancy home and how it all works.
Why Dual Occupancy Makes Sense
Dual occupancy gives buyers and property owners more options. If you already own some land, you may want to optimize the block by opting for dual occupancy. Buying a block of land for these purposes can provide great rental and income returns.
If you own a home on the right block, dual occupancy allows you to rebuild it into two modern homes. From there, you may continue to live in one and sell or rent the other. You can also bring adult children or elderly parents closer to you.
How Does Dual Occupancy Work
There are two main types of dual occupancy developments. You have stand-alone units (usually tucked one behind another) and the duplex (the side-by-side option). A duplex often requires separate driveways, whereas detached units may share one.
The ideal land size for dual occupancy developments depends on your needs. That said, there are some things that you should always consider. For example, focusing on blocks where the slope doesn't go over 10 feet does a lot to reduce costs.
Benefits of Dual Occupancy
For renters, the main attraction of dual occupancy is being able to live affordably in an area they love. They can also take advantage of a more relaxed rent. After all, the landlord only has one set of council rates to pay for both properties.
Dual occupancy is also a great way to meet investment goals. By maximizing the potential of your land, you can get an optimized ROI from two income streams. This also comes in handy for diversifying your property portfolio.
Drawbacks of Dual Occupancy
As always, deciding to invest in a new home is a significant investment. This is why it pays to do your research, such as making sure your council allows building dual occupancy. You'll also need to consider zoning in your area.
If you don't come up with the right plan, you could end up wasting time and money. Making sure that you can afford the development is of paramount importance. Try to figure out whether prospective sales or rental returns can cover costs.
More on What Is Dual Occupancy
Now that you know what is a dual occupancy house, you should see why it represents good value for money. With their unique set of advantages, these properties are a great way to get started as a homeowner.
Want to know more about what is dual occupancy and whether it's the right call for you? Interested in the latest real estate trends? Check out our other home-related content!