Dual Occupancy Explained
Dual Occupancy Properties have recently become a popular investment vehicle for investors seeking high yielding property investments. A dual occupancy property is where a property has two separate dwellings located on a single title. Generally both residences will have separated internal entrances and each side can be leased out to different parties (different Council rules vary).
The Advantages of Dual Occupancy Properties
There are a number of advantages associated with Dual Occupancy Properties as an investment vehicle, with the most obvious advantage being the incredible yield they are able to achieve compared to a standard house and land investment.
Quick Dual Occupancy Advantages:
- Yield: Due to being able to let out two properties, dual occupancy’s are able to collect two rents and increase the yield available.
- Cost: Dual Occupancy properties are a cheaper option in most instances than a duplex, as there generally are less Council fees and town planning costs, no strata fees, only one set of rates, and lower land costs.
- Attractive designs and facades: We have worked with a number of developers and architects to refine the look of our dual occupancy designs. We have been able to achieve a smart and attractive look to our designs.
- High Depreciation: Due to the additional fixtures and fittings, and second kitchen and bathroom; there are higher amounts of deprecation claimable for dual occupancy properties than standard house and land packages.
- Good Rentals: Our experience has shown that the auxiliary dwellings and also the larger dwellings have proved very attractive as rental properties. Particularly due to the areas in which we have chosen for our investments, the smaller one and two bedroom accommodation is in high demand.
Duplex properties are a similar concept to the dual occupancy/auxiliary concept, however each side can be individually strata-titled, allowing each side to be sold separately. There are a number of different town-planning rules associated with duplex properties, and these vary from Council to Council.
Quick Duplex Advantages:
- Potential Investor Uplift: In some instances there is the potential to gain uplift in investment value by undertaking a carefully chosen duplex project.
- Ability to sell individually: Due to being individually strata-titled, an investor can choose to sell off either side of a duplex property individually.
- Yield:Whilst the yield of a duplex is generally not as high as a dual occupancy property (due to additional expenses), they still often offer a higher yield than a standard house and land package.
- High Depreciation: Duplexes also offer high depreciation due to the addition of a higher amount of fixtures and fittings than a standard house and land package.