Posted on August 5, 2021
Advantages of Dual Occupancy Homes
An investment in a dual occupancy home offers a number of advantages. There may be various dual occupancy homes on offer out there and when the right property is purchased it forms a very good investment opportunity.
Generally, the advantages associated with dual occupancy homes are based around the incredible yields that they are able to achieve and this is not the only advantage.
Following are a few key advantages for dual occupancy homes below:
Dual occupancy homes have two dwellings on the one title e.g. a 3 bedroom main dwelling and a 2 bedroom auxiliary dwelling. When each of these are rented out, the property is able to achieve higher than average yields.
When you compare the cost of constructing a dual occupancy home with a duplex then a dual occupancy home will always work out to be better priced. This means that you will get a better yield.
For Dual Occupancy Homes:
- a) There is only one of head works payable (depending on local Council rules).
- b) No strata title fees.
- c) No second set of rates as it is the one title.
- d) The block of land will be cheaper as duplex blocks tend to be more expensive than a standard block.
- e) No additional town planning fees or Council as required for duplexes.
Dual Occupancy properties can look very attractive and resemble a standard house from the street, as the entry to the auxiliary dwelling is usually not visible from the street. This means that they can be built in amongst other attractive houses in well-established land estates.
Dual Occupancy homes generally have two sets of bathrooms and kitchens meaning that there are more fixtures and fittings. This means that an investor can claim a higher depreciation amount and this translates to a higher tax savings.
Our experience has shown us that the auxiliary dwellings of dual occupancy properties rent very quickly, and are very attractive to singles and couples. Having a competent, hands on property manager is also important to secure continuity of rental.
Even though one side of the property may be empty for a couple of weeks when a tenant moves out, the investor still receives a rental income until a new tenant moves in. This helps greatly with cash flow.
Pay down other debt.
Dual Occupancy homes have positive cash flow, which can be funnelled towards paying down non-tax-deductible debt. E.g. mortgage debt, car loans, credit cards.
If you’d like to find out more about dual occupancy homes don’t forget to download our FREE Report: