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Design Tips for Dual Occupancy Homes for Maximum Returns on Investment

Design Tips for Dual Occupancy Homes for Maximum Returns on Investment

It’s often said that without risk there can be no reward, and investors have long held similar statements to be axiomatic such as “time in the market beats trying to time the market,” for example. While there are certainly many volatile and high-risk investments that yield the potential for incredible earnings, they can often just as likely flop. Real estate in Australia is often considered one of the few assets, along with perhaps gold and/or silver, that generally appreciates over time consistently.

To be a little more specific, however, what types of real estate generally accrue in value and where are they located? Well, another catchy saying in real estate is that the three most important factors are “location, location, location” and this is where a lot of personal planning and forethought are required. In terms of what type of real estate, there should also be plenty of consideration.

One such category that’s gotten a lot of attention in recent years has been dual occupancy homes, so how well do they hold their value and how can you maximise the returns on your investment if you’ve decided to invest in a dual occupancy home?

Benefits of Dual Occupancy Homes for Investment Purposes

The popular trend of developing dual occupancy homes in Australia seems to be showing no signs of slowing down, so if you’re considering investing in one then what sorts of benefits can you potentially reap?

Below are a few examples of the benefits of owning a dual occupancy home as an investor:

01. The potential to double rental income;

02. Flexibility to use one or both units as a private residence for yourself and/or a loved one (e.g. like a granny flat);

03. Long-term investment value generally quite high;

04. Capitalise on the high demand for rental units in urban areas, e.g. Melbourne

Why Design a Dual Occupancy Home for Maximum ROI

Of course, an important consideration for any prospective dual occupancy home owner is the design of the units. Appearances do matter, as do architectural elements that improve the aesthetics of the property, floor space, amenities such as gardens, yards, garages, as well as the overall construction quality and interior elements such as flooring, cabinets, bathroom furnishings, and so on.

A dual occupancy home that is attractive and well-designed will, all other things held constant, generally attract better quality tenants willing to pay higher (but fair) rents. Conversely, poor design can detract from property’s value (perceived and/or real) which can in turn make it more of a struggle to justify rental prices.

Design Tips for Dual Occupancy Homes

There are many specific design tips that can increase the investment potential for dual occupancy homes, enough to perhaps fill an architecture library alone, but for the sake of brevity we will list a few general design considerations you should make:

01. Maximisation of space: more floor area means more potential for higher rental incomes and less wasted space;

02. Privacy: for rental purposes, both units should be adequately insulated for sound whilst also having enough of a visual barrier so that every tenant feels comfortable and assured of their privacy;

03. Amenities: a big selling point for rental purposes is the availability of modern amenities. Of course, this means working lighting and plumbing, but nowadays good internet speeds are essential for many. Modern, functional kitchens and bathrooms are also desirable with high-quality furnishings.

04. Outdoor space: while this may come at the expense of interior space maximisation, having some outdoor space is desirable so there will need to be some balancing of preferences here. A private balcony or garden (or shared garden) can all be great additions that add value to the property.

For professional design tips, we encourage you to get in touch with us at Trevor Homes.

Trevor Homes

Contact us at Trevor Homes today.

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