Dual occupancy properties
A dual occupancy is a residential property where two homes occupy one lot of land and are under one title. These dwellings can be attached or detached but cannot be subdivided or sold individually. The lot size on which a dual occupancy property is constructed can be smaller than that required for a duplex.
The term dual occupancy can also refer to a dual key property. The detached or attached part could be used to accommodate family members, such as a granny flat, or to generate rental income from a tenant.
Duplex properties
A duplex is a residential property where there are two completely separate residences under one roof. They are separated by a soundproof, fire-rated dividing wall and, although they have separate entrances, the floor plans are usually identical, mirror images of each other. More land is usually required than for a dual occupancy property.
Duplexes can be on the same title or be strata-titled, and they can be sold individually. You therefore have the option to rent both out, live in one and rent out the other, or sell both properties.
There are a number of costs associated with a duplex property, including council planning and application fees, surveying, utility connection charges, and water and sewage infrastructure fees.
The main differences between dual occupancy and duplex properties
The differences between dual occupancy and duplex properties can therefore be summarised as follows:
- A duplex gives you greater land title flexibility, and they can be sold individually
- More land is usually required for a duplex, and,
There are greater costs associated with a duplex.
The benefits of buying dual occupancy and duplex investment properties
A key benefit to buying a dual occupancy or duplex investment property is that you can receive rent for two dwellings rather than just one, creating a dual income property. They also tend to be positive cash flow properties that deliver immediate returns, as the combined rents are likely to be greater than you would receive from a single property once holding costs have been taken into account.
Buying a duplex investment property also gives you the option to live in one of the properties and rent out the other. This rental income could cover a substantial proportion of the mortgage on both properties, enabling you to pay off the property more quickly, and also help you to reduce any maintenance costs by sharing them with a tenant.
An additional benefit for builder investors is that you can derive a similar amount of rental income as you would from building two detached houses on separate blocks, but with significantly reduced land and construction costs.
What is better for me: a dual occupancy or duplex investment strategy?
A key benefit to buying a dual occupancy or duplex investment property is that you can receive rent for two dwellings rather than just one, creating a dual income property. They also tend to be positive cash flow properties that deliver immediate returns, as the combined rents are likely to be greater than you would receive from a single property once holding costs have been taken into account.
Buying a duplex investment property also gives you the option to live in one of the properties and rent out the other. This rental income could cover a substantial proportion of the mortgage on both properties, enabling you to pay off the property more quickly, and also help you to reduce any maintenance costs by sharing them with a tenant.
An additional benefit for builder investors is that you can derive a similar amount of rental income as you would from building two detached houses on separate blocks, but with significantly reduced land and construction costs.
Focused on Client Needs
Investing in both dual occupancy and duplex properties are excellent options for generating positive cash flow and immediate returns. Ultimately, the best choice for you will depend on your individual expectations, financial goals, and personal situation.
At High Income Property, our experienced property investment consultants can source turnkey investment dual occupancy properties and duplexes across NSW and QLD. Additionally, working closely with a professional buyers agent can further streamline your investment journey, ensuring you find properties that align perfectly with your objectives.
We partner with you to create a tailored and effective strategy for your dual property investment. Our comprehensive services also include identifying the best suburbs to invest in, supported by advice from a dedicated property investment advisor Sydney-based, and determining the most suitable type of home loan or investment loan for your specific financial needs.
Get in touch with us at info@highincomeproperty.com.au or call us on (02) 8007 4001 and we will be happy to answer your questions and help get you started on buying a dual occupancy or duplex investment property.