There are plenty of good reasons to invest in a dual occupancy home in Australia, so many that we’ve routinely covered its many benefits in previous blog posts. Suffice to say that they’re a great, versatile investment and/or place to call home, and they’re quite trendy for these reasons and many others.
If we had to narrow down the biggest advantage of investing in a dual occupancy home, it has to be the ability to generate multiple income streams and potentially pay off the property sooner. The investment potential is huge, and that alone is a great benefit for the owner. Choosing a dual occupancy home can also be very beneficial for tenants or residents. Here’s a look at these advantages.
Investment Potential of a Dual Occupancy Home
Since a dual occupancy home is two homes located on two legally separated properties, owners can generate a steady income from one or both properties practically in perpetuity. Of course, there will always be some vacancies if you are renting one or both properties – it’s just part of the game – but given the record high demand for accommodation all across Australia (and especially in major cities), the market heavily favours landowners, and you shouldn’t have too many problems finding quality tenants.
With both properties rented out, you hedge some of the potential losses from vacancies by having income coming in from at least one property most of the time. Multiple income streams are pretty good to begin with, but they also open up a lot of cash flow, which can be used to go right back into the mortgage loan, saved up for remedial works and beautification, further investments such as building patios or extensions, and so on.
Additional Benefits of Dual Occupancy Homes
As a prospective investor in dual occupancy homes, the logic is fairly easy to follow. Investors are drawn by the high potential for great ROI, multiple income streams and high cash flow, and the fact that many council authorities are quite friendly towards dual occupancy developers – especially in suburban areas.
Land utilisation is a big point of focus these days, directly as a cause of a housing shortage and the huge demand for housing. Being able to repurpose older properties, such as large single-family detached dwellings from the Builders generation, into two smaller properties adds more housing on what would otherwise be one large plot of land.
Moreover, it’s in line with modern demographic changes. Australians are having fewer children, family sizes are getting smaller, and multi-purpose rooms and smaller houses tend to be attractive for younger homebuyers. For tenants, a dual occupancy home is perfect for a huge swathe of prospective tenants. It’s likely going to be a little larger than a flat in the CBD, much quieter (assuming it’s in a suburban neighbourhood), and offers green space, which is great for wellbeing, having pets, and having children play safely.
Is it Worth Investing in a Dual Occupancy Home?
Right now, it’s a particularly challenging time for many first-time homebuyers in Australia. Prices have skyrocketed, and they seem to beat new records every few months. Investing is always something that should be carefully considered no matter the asset or instrument, and real estate is certainly no exception. Having said that, it tends to historically be quite safe and a great store of value (equity).
Trevor Homes in Geelong
Thinking of investing in a dual occupancy home? Contact us at Trevor Homes in Geelong. Our team are expert builders in dual occupancy dwellings, and we’re here to help.
