2 Proven Dual Occupancy Development Strategies to Kick-Start Your Wealth
Have you ever wanted to know if doing a dual occupancy development was financially a good idea? Well, keep reading because in this article I’m going to explain why it is in fact an amazing opportunity that will absolutely kick-start your journey to building wealth.
I’ll also be sharing two common Little Fish strategies that you can use to start building your wealth or so you can simply live in that house and that location you and your family desire.
Small to medium residential property development isn’t just a space reserved for the wealthy to play in. I’m going to show you how it’s genuinely for anyone smart enough to connect the dots and see the opportunity.
Once you’re up to speed with how these dual occupancy development strategies can work for you, it’ll definitely become a no brainer and hopefully, motivate you to learn more.
Let’s do it.
Strategy #1 – The “Like-Minded Team” Strategy
Let’s talk about the people out there that are renting or owner-occupiers who need to upsize. Neither of which want to move away from the postcode they currently call home.
Whether that’s because their kids go to school in the area. They have family and friends close by. They may work in the area or they may just like the cafes around the corner! The reason they like an area is their own.
If this sounds like you, you’ll know exactly what I’m talking about. You look around at the real estate you want but it’s out of reach.
This is where the dual occupancy like-minded team’s strategy can work for you. It can get you into your desired house and keep you in your desired location.
You’d be shocked to know how many people, probably in your area, are having the same thoughts. You may even have family or friends in the same boat.
This is where 2 like-minded ‘teams’ can team up with the aim to purchase a block in that location you both love and build two new dwellings on it. Leaving you with one each!!
It’s actually easier than you might think. If you have the appetite to learn you’ll find a heap of resources on my YouTube channel and our blog to help you find your way. And if you don’t or your time poor you can engage professionals that offer this service like us here at Little Fish.
Another way this can play out. Which would be super advantageous to both parties, is if your parents who may be a bit more established than you are wanting to get involved.
Now I’m not talking about a handout from mummy and daddy. I’m talking about a legitimate partnership! And who else would you rather partner up with to grow your wealth?
The key to these partnerships is that you are going to be left with 1 essentially identical dwelling each. So at completion, each party can do what they like with their house.
Occupy, sell, or rent. It keeps it fair and clean.
One party could even do it simply to help the other party out and make a serious profit in the process.
Strategy #2 – The “Mum and Dad” Strategy
Another way your parents may get involved is if they already have a site that could be developed into a side by side dual occupancy design. They downsize into one and fill their pockets with cash and you get the remaining one at wholesale loaded with instant equity.
I’ve managed multiple projects like this for clients, that’s why I dubbed it the “mum and dad” strategy, all parties have been wrapped every time and why wouldn’t they be. All the crazy profit the developers usually make was serious equity that was left in each of their houses at the end. Equity that will continue to compound for years to come.
One of our clients, for example, had grown up in a particular part of Melbourne’s Bayside, they still lived in the area but were renting. They really wanted to get something of their own and staying in the area was really important because they wanted to keep that support of family close by.
You wouldn’t read about it, but it happened, I’m telling you… and it’s happening more often as people start to join the dots. Their parents obviously lived in the area. Their house was starting to need plenty of maintenance and as they were entering their later years, they really needed something more suitable.
In the end, they were two parties with a common goal, they both wanted to stay in the same postcode and the parent’s house was perfect to do a dual occupancy development which we managed for them.
Recap – both parties paid wholesale for their brand-new dwellings meaning they had significant equity in the properties, and we got to do another awesome project for great people – everyone was a winner!!
Have you already got a dual occ site? Need a quality builder? Check out this list we pulled together of who we consider Melbourne’s very best. It includes who we think are the big players, as well as the best smaller independent builders.
In a Nutshell
I’ve shared two winning dual occupancy strategies that should leave you with some food for thought. There’s never been a better time to start growing your wealth. And from what I’ve known and seen there isn’t a better way than low-risk dual occupancy developments. It really is low hanging fruit that anyone with a desire can pick.
Partnering up with someone likeminded is a great way to get started. Especially if you don’t have the means or appetite to go it alone.
Re-Recap – build your dream home, pay significantly under the market value, build equity, create wealth.
It’s a no brainer!
You’d be involved right from the start. You’ll have input into the design, layout, look and feel, whatever you like. It will be your house to design, so whatever means the most to you.
Forget about going to countless open homes on a Saturday and wondering ‘why the designer made the laundry so small? there isn’t a dedicated study?’ ‘I wish it had four bedrooms’ ‘I would have done this’; I would have done that.
Or you simply can’t afford it anyway.
Well, you can eliminate that when you do it yourself.
So, I’ll leave it there for now. Hopefully, you’re starting to connect the dots. Partnering up to do a dual occupancy development is an incredible opportunity that will kick-start your wealth-building journey.
Remember these are only a couple of the strategies you can leverage to kick-start your exciting journey as a developer. Either go it alone or as an “armchair developer” if you engage some professional help from an experienced property development project manager.
Personally, I think it’s a no brainer. With the Australian population growing like crazy and everyone wanting to squeeze into these great locations I believe this strategy of buying one good block and putting two on it will become extremely common.
You can’t help being ahead of the curve!