When it comes to developing a property, there’s a lot of jargon and technical terms floating around. At Little Fish Property Developments, we’re here to help.
We understand that you’re interested in maximising the value of your land, but that you might not be up to scratch with all the jargon. That’s why we’re here to explain what a dual occupancy subdivision is.
Dual occupancy designs technically mean two properties on one block of land. But when we talk about a dual occupancy development, you could have two, three or even four or more units or townhouses on the one block, depending on the size of the block.
Before we dive in, if you’ve been thinking about doing a dual occupancy in Melbourne, we think it has a big upside. Here’s why.
What is a Dual Occupancy Property?
Dual occupancy designs are when you build two or more separate properties on the same block of land. Or, it can mean building a whole new house next to or behind your existing home.
It essentially means that you have two or more homes on the one title of land that will ultimately get subdivided in the future.
This can be great for accommodating family members, like elderly relatives, or if you want to get into the rental market and let out one or more of the properties while living in another.
What is a Dual Occupancy Subdivision?
A dual occupancy subdivision is when you build two or more dwellings on an existing single title and then subdivide the lot to create two separate titles.
Can I Sell a Dual Occupancy?
Yes, of course! That’s the whole reason you subdivide so you can sell each lot separately and maximise your return on investment. Let’s unpack how you can do it.
First, you either own or purchase land that is suitable for a dual occupancy project. Then, you begin the planning process to get approval for the dual occupancy development. As you make your way through the build process and construction commences you begin the process of subdividing the land.
Side note – check out this nifty article on subdividing your land with a mortgage.
At Little Fish, we like to market and sell our subdivided properties of the plan. Once construction is complete, and we’ve sorted the subdivision approval, your buyers can settle immediately. So you will see your profit faster.
If you wait until the properties are complete and run a real estate auction or private sale campaign, you’ll need to wait for the property to be listed for sale, have it on the market for several weeks (at the very least!), and then wait for the agreed settlement period which is usually 60-90 days.
Sometimes you may get more for your properties running a sale campaign after the new properties are completed like we just discussed, but each project and situation is different.
It’s important that you understand the different options and know that they’ll each have an impact on when you’ll receive payment.
Can a Single Property from a Dual Occupancy Project be Sold Separately?
Any property that sits on its own title can be sold separately. So, when you begin a dual occupancy the end goal is to subdivide so each dwelling sits on an individual title. You can then put them on the market separately.
For more detailed information on strata subdivision for dual occupancy projects click here.
How can I Build a Dual Occupancy?
You have a few options here. The first is by building a separate dwelling in your backyard that shares a driveway if you have enough space. Then you would subdivide the lot so both homes end up on their own title. The driveway would then become common property.
You can then sell them both, sell one and rent one out or rent them both out! You’re spoiled for choice here. Either way, you’ll come out of the project with some money in the bank or additional equity in your investment.
The second option is for those with an appropriately sized lot – you can knock down your existing home and build two or more new dwellings. You’d then subdivide the land and each dwelling would end up on its own title of land.
Depending on the size of the original lot and your intentions these dwellings could be either semi-detached or completely detached.
So there you have it, you should now know what a dual occupancy subdivision and or property is.
Want to Know More?
If you’re interested in learning more about dual occupancy subdivisions, then give the friendly team from Little Fish a call.
We’re local experts in all thing’s property development and we can connect you with the right subdivision builder for your project. Give us a call on 1300 799 277 we’d love to hear from you!