Tiny homes have been quite trendy in recent years, partially due to their comparatively affordable cost and partially due to their appeal amongst minimalists and young homebuyers in search of an alternative, simpler way of living.
Similarly, dual occupancy homes have been very trendy, sometimes for similar reasons to tiny homes but also for their unique advantages and investment potential.
For many homebuyers and investors, however, dual occupancy homes are the superior choice and here are five reasons why we feel they’re simply better:
01. Ideal Size – Not Too Big, Not Too Small
Many tiny homes really do earn their name – they’re very small! That’s an appeal to some, but for many it’s just too small. Conversely, a large single-family detached home might be too big for you alone or a small family. Dual occupancy homes are a perfect middle ground for many.
Size is highly variable, but to give a rough impression a dual occupancy home is generally around 2-5x the floor area of a tiny home. That’s usually enough for one or even two bedrooms and a shared living room and kitchen, bathroom, and a little bit of storage space. Compare that to some tiny homes which are extremely cramped and are only really feasible for absolute minimalists.
02. Property Appreciation – Not Depreciation
This mostly pertains to mobile tiny homes, or tiny homes on wheels (THOWs) which are functionally homes but on trailers. These tiny homes are quite popular and mobility is a strange benefit to have for a home, no doubt, but it poses some notable downsides as well.
Like a caravan or motor home, a THOW is something you might call home, but it will depreciate in value over time. Moreover, if you don’t own the land underneath (e.g. you lease the land) there’s obviously no appreciation in land value, so there’s no long-term investment potential as there is with a dual occupancy home.
03. Higher Rental Income Potential
There may be great appeal to renting a tiny home and indeed many short-term rental platforms like Airbnb might be cool and trendy places to list a tiny home, but they are somewhat niche and perhaps not the best suited for long-term rental.
Dual occupancy homes, on the other hand, can be highly desirable for both purposes. Moreover, the ‘dual’ in the name means that you can use both properties to generate much higher rental incomes than what is likely possible with one – or even two or more – tiny homes.
04. Permanence and Stability for Utilities and Connections
There are some tiny homes that are purpose-built for off-grid living and some that are best suited for temporary living, i.e. THOWs. Having to establish connections for gas, electricity, and water can be challenging.
Dual occupancy homes are much more permanent and you’ll naturally be able to establish these connections just as you would for a larger home.
Furthermore, having a permanent home means resting the structure itself on a solid foundation, which enhances long-term value.
05. More Flexible and Reasonable Accommodations for Families and/or Tenants
Tiny homes are doable for a young single person or perhaps a couple, but they aren’t very friendly for large families, seniors (most use ladders to get up into sleeping quarters in the loft), and they certainly aren’t built for multi-generational living.
Dual occupancy homes are much more similar to granny flats in that they can be used as a permanent residence for yourself, family members, etc.
Trevor Homes
Choose Trevor Homes for dual occupancy home development.
