Have you ever wondered if doing a dual occ project was a good idea and why? Well, keep reading because I’m going to put my dual occ advisors hat on and share 6 reasons why kicking off your first dual occ is absolutely an awesome idea.
By the end, it will become glaringly obvious and have you super excited to get your own journey started.
Before we get too far ahead, some of you might be wondering what is a dual occupancy subdivision and or property so sink your teeth into that article first if needed.
Let’s get into it.
1. Grow Your Wealth
Residential property developers make huge returns turning over dual occ developments. It’s appealing because it’s a legitimate low-risk way to grow your wealth. The smart developers have refined their development process so they can repeat it.
Whether you want to use it to grow wealth or you want to leverage the benefits of a dual occ to build your next house then sell or rent the other.
It doesn’t matter. Either way, you’re growing your equity and building your wealth.
Sure, if you buy the right standalone property in the right location you can start to generate some capital growth and build wealth that way.
This is a viable option for sure but you’ll need to be patient because it will take time because you’ll be relying on market cycles which can be risky.
There’s always going to be costs involved such as the stamp duty for investors land tax and legal costs to name just a few.
So you’ll be relying on capital growth straight out of the gate just to get you back to even.
As professional dual occ advisors here at Little Fish we recommend not sitting around waiting for capital growth rather creating it by doing a dual occ development project.
Turn one property into two, you’ll instantly generate equity and the market growth will just be an added bonus.
2. Minimal risk
These dual occ developments if done in the correct locations and designed right are seriously low risk. BUT remember I said low risk and not no risk.
There are numerous types of risks in property development that you need to consider.
The good news is, you have two options. You can roll the sleeves up, do the research and potentially navigate your way through it yourself.
Or alternatively, you can engage professional residential development managers such as us at Little Fish where you get to leverage our knowledge, resources and networks to essentially mitigate all of the risks.
Dual occupancy homes are our passion, day in and day out we help our clients identify low-risk locations and navigate them through the design and town planning stages to ensure positive outcomes on every project.
The best way to mitigate risk and maximise returns is gaining the right knowledge and then running the course in a timely manner ticking all the right boxes along the way.
If you can do that, you’ll be well on your way to creating amazing wealth!!
3. Fast Turnarounds
One of the great upsides of dual occ developments is the fast project turnarounds in comparison to larger-scale developments.
The key to a fast turnaround on your project is to ensure you start the process as soon as you purchase the property. Well, you before you settle it.
Essentially meaning you are moving the project forward before you have started paying for it.
Too many property development beginners think because they negotiated good settlement terms time is on their side.
This has the potential to be a huge mistake.
A lack of appreciation for how quick days turn into weeks, weeks into months and months into years can be very costly.
4. Live in You Desired Location
By doing a dual occ development you get to pick the location you want to develop in and live in if that’s the plan.
Rather than buying in a suburb or street that the developer has chosen, you get to pinpoint exactly where you want to develop and ultimately live, by leveraging the benefits of doing a dual occ you’ll have the option to live somewhere that otherwise might have been out of reach.
Having more options on where you could live and being able to make location decisions based on what’s most important to you is without a doubt a win.
5. Design Your Dream Home
Once you have found the location you love; you get to design and build the house you love. You get to decide on the layout, colours, materials, fixtures, fittings, everything! It doesn’t matter who your dual occ advisors are, this is the gold.
How good, you’ve picked the location you want, then you have designed the house you want and most important of all, you’re starting with in-built equity.
Much better than looking and hoping that a developer has read your mind and ticked all of your boxes. Trust me it doesn’t happen.
6. Teaming Up
As our role as dual occ advisors teaming up is something we’ve been recommending for a long time. The ability to partner up with someone like-minded and finish up with a house each that you both paid wholesale for is a very real and incredible opportunity.
It’s a fantastic way to kick off your first development and get into your dream home.
Doing it yourself can be a bit tight financially and even daunting for some so teaming up with someone like-minded is an awesome strategy.
Your buying and finance borrowing capacity as a team will be greater than by yourself, this might mean you can get into a suburb that you couldn’t by yourself and could also mean you can build bigger/better houses than you could by yourself.
As you can see, I’m a huge advocate for this and hopefully, what you’ve read up until now have explained why and it gives you that little push you need to find out more or even move forward with your first dual occ because if you go about it the right way it has the potential to change your life!
Do you already have a development site? If you do and you are looking for builders check out the list we put together of who we consider Melbourne’s best dual occ builders.