Posted on July 4, 2022
What Is a Dual Occupancy Investment Property?
Since their inception in 2013, Dual Occupancy Investment Properties have become very popular amongst property investors seeking high yields and positive cash flow from an investment. They have been in high demand in the South-East Queensland region and the Sunshine Coast and Hunter Valley region of NSW.
There a few different types of dual living or dual occupancy property types available.
A dual occupancy investment is a property on one title that has two separate dwellings under one roof. In most cases the two dwellings are separated by a common rated firewall, but can sometimes be detached. Both residences will have separate internal entrances and garages. They can be leased out to different parties and they come with separate water and electricity meters for peace of mind.
Duplex properties are similar to dual occupancy property, however each side of the property can be individually strata-titled meaning that each side can be sold off separately. Duplex properties have a different set of town-planning rules for approval, and these vary across different Council areas.
A dual key property is where there are two separate self-contained residences which are located on the one title. These will generally have a single entrance and have separate lockable doors once inside. Both residences can generally be leased out separately (depending on the local Council rules). Dual Keys are generally seen in apartments rather than house and land.
Different Council areas use different terminology for the types of dual dwellings outlined above and this can create a lot of confusion, especially if you are in Victoria inquiring about dual occupancies in Queensland. E.g. Victorians generally tend to regard dual occupancies as townhouses that are built on the one title.
This is because the councils in Victoria don’t allow the same type of dual occupancy with auxiliary unit as they do in NSW and Queensland. So, for Dual Occupancy properties we’ll add the term Auxiliary dwelling, as this should cover the majority of council areas where dual occupancy homes are available.
The key difference between the dual occupancy / auxiliary from a duplex, is that duplexes each have a side that can be individually strata-titled and can then be sold off separately, where as a dual occupancy / auxiliary, being on the one title can only be sold as one.
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