4 Reasons You Should Do a Dual Occupancy Development in Melbourne
More and more regular Melbourne residents are realising that they are sitting on a potential gold mine – a large lot of land.
You can get caught up so much in property values that you can mistakenly believe that it’s your bricks and mortar that are high in value. In reality, it’s actually your land!
There is a stack of reasons why you should leverage the benefits of undertaking a dual occupancy development on your lot if you live in Melbourne – let’s look at four of them.
1. Maximise the True Value of Your Land
The real value in any property that you might own lies in the land that it sits on. The day you move into a new house is the day it starts to depreciate.
Much like when you buy a brand-new car. The second you drive it out of the car yard it starts to depreciate.
With property, the value is in the land. While the house might depreciate in most, if not all cases, the land will be appreciating over time. By subdividing a property and developing two or more dwellings on an existing lot you can maximise the value of your land.
Side note – if you are thinking about becoming a Melbourne property developer, even as a side hustle check out the skills we think are needed for property development success.
2. Grow Your Wealth
With the right help and support. Embarking on a dual occupancy development in Melbourne is a proven, extremely low-risk method of growing your personal wealth.
That said, if you try to manage the whole project yourself without any prior experience or support it can quickly become a high risk, costly venture that could lead you to financial ruin.
A bit dramatic but the risks are real if you aren’t prepared to put the time into learning everything you can. Or if you don’t leverage the support and expertise of seasoned property developers.
A dual occupancy development isn’t a little side project you can dip in and out of. It’s a high-level project that you need to dedicate time, energy, resources and effort to. You need your head in the game and your finger on the pulse every step of the way
Before we get too far ahead, check out this trusty article that explains exactly what a dual occupancy is if you need some clarity.
3. Expand Your Lifestyle Options
Have you had your eye on living in a certain Melbourne location for a while? But you’ve found yourself held back by the cost of property there?
Well, by undertaking a development you could generate enough profit to either buy outright in your chosen location or have a substantial deposit and a low mortgage to pay off over time. Developing will give you the flexibility and capability to make that next positive move to where you want to be.
An example might be as follows: you can purchase a dual occupancy residential development site; build two dwellings you then sell one and keep the other. This will help you get into the area you’re wanting to and in most cases, you’ll even end up with some built-in equity straight out of the gate.
If you can’t afford to do it yourself then teaming up with someone likeminded is extremely common with each party able to do whatever they like with their dwelling from the project.
4. It Suits Potential Investors or Down-sizers
By building a dual occupancy, you are spoiled for choice at the end of the project. You can downsize and live in one of the homes. This option suits empty nesters and retirees who don’t need a huge house to spread out in anymore.
You can then either sell the other dwelling outright or rent it out for a nice steady stream of passive income. Or, you can sell both dwellings and walkway laughing with a tidy sum in the bank to finance your next purchase. You can even use the profit to fund the next purchase and development – you could find yourself a full-time property developer or part of a property development team before you know it!
So, if you live in Melbourne and you have the land you should definitely look further into doing your first dual occupancy project especially if you’re interested in growing your personal wealth and getting ahead of the curve.
If you don’t have the land, talking to dual occ advisors such as us here at Little Fish to help guide you into a site fit for a dual occupancy development could be the right play for you.
Want to Learn More?
If you’ve read this and you’re still a bit confused about leveraging the benefits of a dual occupancy development that’s fine, there’s a lot to take in.
Why not call the team at Little Fish Property Developments, who are on standby to assist. Give the team at Little Fish a call on 1300 799 277 for a free consultation. Learn how to make your property work for you.