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The following article was published in our article directory on March 10, 2021.
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Article Category: Real Estate
Author Name: Geoff Doyle
Investors are becoming increasingly interested in dual occupancy properties due to their high return on investment profit potential. As the name suggests , these properties consist of two homes that occupy the same plot of land and which are usually combined under a single title.
There are several types of dual occupancy homes, including:
Granny flats. These are studio-sized self-contained homes that are usually constructed in the backyard of the property. They are part of the same title and are considered a second residence. Granny flats generally include one bedroom, a kitchenette, bathroom and living area.
The lot on which the granny flat is built should be at least 450 square metres and the flat itself is limited to sixty square metres. The main house should have a garage or other off-street parking.
Dual occupancy. This consists of two houses that may be detached or attached. Detached houses are separate dwellings while attached homes are connected to each other. These homes cannot be further subdivided although the utilities may be separated.
Duplex. These consist of two homes facing the same street, and are divided by an adjoining wall. They can have a single title or each residence may have its own title, allowing them to be sold separately.
Both dual occupancy and duplex types require you to request approval from your local council. They are subject to requirements regarding the size and width of the land as well as its setback. You don't need to seek council approval to build a granny flat as long as it meets space conditions.
Tips for Investing in Dual Occupancy Properties
The most important investing tip is to do your homework before you begin. Speak to experts about the process and don't hesitate to ask questions. Make sure you understand every part of the process before you commit, and that the information you're getting comes from unbiased sources.
It is also vital that you familiarize yourself with the most Complying Development Standards. These will tell you what the minimum lot size is before your project will be approved by the local council. There are also other requirements that have to be met, such as the need for at least one off-street parking space.
If you are planning to purchase a plot of land to build your dual occupancy home on, do your research thoroughly. Aside from understanding the local council rules, you should consider the demand for rentals in the area. The property should also be close to public transport and shops as well as schools.
Think carefully about the type of dual occupancy home you want to build. There is a multiplicity of designs available which allows you to be creative with the layout of the property.
Before you make your decision, think about what your investment objectives are. You can also consult with builders specializing in dual property homes to help you decide which design best meets you requirements.
Finally, make sure that you have sufficient money on hand. No matter how much you budget, there may be unexpected delays or costs. Be sure that you have more money than is necessary to complete the project.
At the same time, make sure that you are not spending too much. Be honest about how much you could earn from rents, particularly when there are few tenants.
Keywords: property investment, buyers agent, dual occupancy homes, investment property, rental property, how to invest
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