Posted on July 4, 2022


Ever since the Ipswich City Council introduced the concept of a Dual Occupancy Home as an alternative to the housing market, the idea has been successfully taken on by many other councils in Queensland and New South Wales.

The beauty about dual occupancy homes is that, they resemble a standard house & land package. This allows them to fit in with other houses within an estate and don’t upset the estate covenants of new developments.

This allows a slightly higher density of living while still giving those living in the dwelling plenty of space and privacy. There is also a better usage of land which is becoming scarcer as populations grow.


1. Dual Income

From an investors perspective a dual occupancy property allows an investor to increase their Return On Investment (ROI) by having to rental incomes coming in from the one title. The benefits of this are enormous to the investors’ cash flow as the investment is no longer negatively geared. It is cash flow positive, which means there is a surplus of funds at the end of every month.


2. Claim more on Depreciation

A dual occupancy home has two separate dwellings on a single title. This means that there are two separate installations of kitchens, bathrooms and fixtures and fittings. This means that a larger amount may be claimed back on the combined depreciation of the fixtures and fitting on both dwellings. As the construction costs are also slightly higher than a standard house & land package, further depreciation on the overall construction may also be claimed. Typically one residence would include 3 Bedrooms, 2 bathrooms and a Garage and/or Carport and the other residence would include 2 bedrooms, 1 bathroom and a single Garage. So the amount of depreciation claimed is quite considerable.


3. Pay Down Debt Quickly

A standard house & land package will generally be negatively geared. This means that after calculating the tax incentives together with the rental income, there is a deficit in funds which has to come out of the investors pocket. Those funds, which could have been used to pay, e.g. mortgage debt, are being used to maintain the investment. This has been a growth strategy that investors have used for decades.

The major difference in a dual occupancy property is, when you take the considerably amount claimed back on depreciation together with the increased rental income, there is a significant surplus of funds left over. This money can be funneled into paying down mortgage debt. If you have a portfolio, the excess funds may be channeled to pay down loans on investment properties as well. The idea is to be debt free.

So, whether you are a first time investor or are building a portfolio, a dual occupancy home is a great tool to help you reduce debt quickly.


4. Continuity of rental

All investment properties have vacancies. These are usually for a short period of time while one tenant vacates and another moves in. These vacancy periods are generally calculated in when doing a Property Investment Analysis and are factored in at 2%.

With a dual occupancy property, while one dwelling may be going through a change in tenant, the other dwelling remains occupied. This means that as an investor, you will still receive a rental return through this change over period.

This gives an investor greater peace of mind knowing that there is a continuity of rental. Rarely will both sides of the dual occupancy home be vacant which means that the vacancy rate for this type of investment will be way under 2%.


5. Live in one – Rent out the other

Many Baby Boomers are looking to downsize. For many, the prospect of demolishing their own home and building two or three units is daunting and can be difficult to manage. Another great option is to sell the current home and buy a dual occupancy home.

This allows you to still maintain the integrity of owning your own home, having privacy and earning an income from the dwelling next door.

If you’d like any help in getting into any of these Cash Flow Positive solutions, get in touch via the link below.