Australia’s property market is red hot and extremely competitive, much more so than most of us have ever seen in our lifetimes. When looking for a new home, either for living or for investment purposes, it’s essential to do your planning well in advance. That applies when markets are good, but it’s particularly important in such a competitive atmosphere as we have now.
While many consider a single-family detached dwelling as a typical home, the asking prices are often simply out of the question. This has spurred many Australian homebuyers to look for alternatives, options which can give greater financial flexibility and more modest living spaces. Dual occupancy homes have become extremely trendy, especially in the suburban areas of major Australian cities, but how do they stack up against a traditional single-family detached dwelling?
What is a Dual Occupancy Home?
A dual occupancy home is a type of housing arrangement whereby two dwellings are built, either on the same lot or on two legally separate lots. They can be structured in quite a few ways, such as under a single title or under a Torrens Title type of subdivision, where both properties are legally separate, and the homes sit on their own parcel of land.
This differs from single-family detached dwellings, which are far more straightforward. They are one principal dwelling located on one piece of land and under one title.
How Does a Dual Occupancy Home Compare to a Single Family Detached Dwelling?
As mentioned, one of the defining features of a dual occupancy home is that it’s two homes built on one piece of land or two homes built on subdivided land. But aside from legalities (which are important), they do tend to be a little different to a traditional detached home, such as the many homes built many decades ago.
Demographics in Australia are changing, the economy is changing, and lifestyles have changed. Many young first-time homebuyers no longer want or need the comparatively large family homes of the past, nor can they usually afford them. Smaller homes are much more popular, as they’re easier to clean, there are fewer unnecessary spaces, and they can still give plenty of privacy.
Which is the Best Financial Investment?
Both single-family homes and dual occupancy homes can give you fantastic returns on investment, but that is a personal financial decision, and we cannot tell you with absolute certainty what your ROI will be – nobody knows.
All things held equal, however, a dual occupancy home has the potential to offer more flexible and stable returns on investment, since one or both units can be rented to tenants. This stabilises cash flow and minimises downturns during vacancies.
Important Considerations for Building a Dual Occupancy Home
A dual occupancy home development can be considerably more complex than a single-family home development, and a lot of that has to do with the bureaucracy, especially if subdivision of land is required. Council planners, developers, and project managers must make sure that everything is approved and red-stamped before a spade is dug into the ground.
That being said, a lot of this complexity can be navigated when you work with a competent dual occupancy home developer such as Trevor Homes.
Trevor Homes
Build your dual occupancy home with Trevor Homes.
