Should you consider a dual occupancy home as an investment? How about as a place to call home whilst earning lucrative passive income from your second property? Or perhaps as a place for your family to live close by your parents as they age?
There are plenty of use cases for dual occupancy homes, and seeing as how they’re quite popular nowadays in Australia, it’s worth spending a little time considering whether or not they’re right for you. Below are a few valid reasons why you should consider dual occupancy homes:
Increase Property Value
A duplex or detached dual occupancy home property can increase property value by up to 40 per cent, which is quite substantial given that the price of property in Victoria and elsewhere tends to be quite high.
The increase in property value is quite significant alone, but this is certainly useful for resale since you could invest in a dual occupancy home on an existing property of far lesser value and convert it into a handsome profit. Naturally, you’ll need to go through all of the paperwork and bureaucracy (especially if you require subdivision) as well as hiring contractors, so you’ll need to consider the upfront costs before deciding on this type of investment.
Minimise Risk & Diversify
Property prices in Australia soared in the past decade, leaving many with the feeling that they’ve been left out of the bonanza whilst others hit a veritable gold mine. Whether you’re developing a dual occupancy home as your first major real estate investment or you already possess substantial assets, this is one investment you most certainly won’t regret – provided you exercise caution and request the assistance of a professional dual occupancy home development company such as Trevor Homes.
While this is not professional investment advice, it’s generally well-known in any financial textbook that diversification is key to hedging risk and earning steady capital accumulation. Dual occupancy hedges risk by having two investment properties with the potential for letting, resale, or for living. Two is better than one, right?
Consider that you could potentially have one home whilst the other property is netting you about $400-500 per week. In such an arrangement, you can quite easily arrange for DIY repairs and cleaning duties since it’s next door or you can meet prospective tenants in a matter of minutes rather than having to drive across Melbourne.
There’s no doubt that owning your own piece of real estate provides a great sensation of freedom. Owning two, however, means that you can live comfortably in one unit whilst renting out the second for passive income. Or, if you prefer, you can rent it out for a few years then convert it into a living space for your children or parents as they grow older.
Dual occupancy homes can be attached (i.e. duplexes) or semi-detached, so there’s plenty of choice in how you want to have your dream dual occupancy home designed and built.
Lastly, consider that in our uncertain times of the global pandemic, having an investment that’s physical, concrete, and relatively safe which accrues in value rather than depreciates is a wise decision.
Want to have your dual occupancy home planned and designed by professionals? Give us a ring at Trevor Homes and we’ll be happy to show you our work and to guide you through, step by step.