There are a number of advantages of dual occupancy homes, and when the right property is purchased they form 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.
I’ve outlined a few key advantages for dual occupancy homes below:
Dual Occupancy Home Advantages:
- Yield. As dual occupancy homes have two lettable dwellings on the one title, they are able to achieve high yields.
- Lower Cost. When you compare the cost associated with a Duplex purchase, dual occupancy homes work out to be relatively well priced.
- a) There is generally not a second set 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) Generally a lower priced block of land (as Duplex blocks tend to be more expensive than a standard block).
- e) No additional town planning fees or Council as required for duplexes.
3. Attractive Facades. Dual Occupancy properties can look very attractive and resemble a standard    house from the street, as generally the second entry is not visible from the street. This enables them to be build in amongst well established areas as well as attractive new land estates.
4. High Depreciation. Dual Occupancy homes generally have more bathrooms, and two kitchens (one each side) meaning that there are more fixtures and fittings. This enables a higher depreciation amount and tax savings to the investor.
5. Attractive Rentals. We’ve found that particularly the auxiliary dwellings of dual occupancy properties rent very quickly, and are very attractive to singles and couples.
I’ve outlined a few of the advantages above, but in summary the key advantages of dual occupancy homes are:
- Dual occupancy homes yield.
- Cash Flow.
We’ll go into more depth about Dual Occupancy Homes in a future blog.
