Benefits of a Dual OccupancyHOW TO BUILD EQUITY THROUGH A DUAL OCCUPANCY OR TOWNHOUSE SUBDIVISION IN MELBOURNE.
A dual occupancy development is a great way to build a property portfolio. Whether you are a first home buyer (or investor) or a couple entering retirement. The dual occ will provide two rental incomes or give you an opportunity to subdivide and sell to cash up or you may wish to build and enjoy your custom designed new home. A well selected site could even be cash positive letting you move on to the the next property development. Soon you will be from zero to planning a passive income for life. There are pitfalls and matters you should seek expert help on. Read on to see how you too can be a successful dual occupancy investor. What is a dual occupancy? A dual occupancy occurs when your local Melbourne or Victorian Council approves a Town Planning Application for two dwellings to occupy one lot of land. A dual occupancy is profitable when a property subdivision occurs and when that one block of land is subdivided to create two or more sparate blocks with each lot having its own title. It is the subdivision which releases equity. Some Councils may have minimum lot sizes. What are the benefits of a dual occupancy? A dual occupancy can be one house behind another- a tandem dual occ- or one beside another-a duplex- or one above the other or if facing a wide street frontage detached houses with the same street frontage. If the existing home is worth keeping try and save it rather than demolish only to replace one house with another. Banks like the retentioin as it provides more security. A dual occupancy provides two rental incomes or a dual occ subdivided site can be sold to cash in on some equity or you can build the dual occ and move into a new home. If you sell the backyard you still continue living in the home you got accustomed to. If moving into the new dual occupancy in the backyard there are tax benefits you should discuss with an accountant. If you rent the new house there may be depreciation benefits which can be substantial. The benefits are strong. Is dual occupancy always possible? Dual occupancy development is generally allowed on all residential land under the new reformed zones across Victoria. But watch out for the minimum lot sizes your local Victorian Council may impose as that may prevent a subdivision from ocurring. A dual occupancy can only occur if there are no restrictions on a property title which prevents more than one dwelling occupying the land. A dual occupancy is allowed in the new Neighbourhood Residential Zone (NRZ) as well as the General Residential Zone ( GRZ). Each Council may have a Schedule applied to its residential zone where the number of dwellings or minimum lot sizes is specified. If the number of dwellings is not specified, then only two dwellings is allowed in a NRZ. Under the GRZ a slightly higher density is allowed while under the Residential Growth Zone (RGZ) the density is intensified. However the Schedules to these two Zones will specify the intensity of the density allowed including the maximum height permitted. We show you how you can do a dual occupancy or triple occupancy development in Victoria successfully later on this page and explain the dual occupancy development process brick by brick. In the meantime you may wish to take a crash course on how to develop a dual occupancy in Melbourne and learn about the planning process, site challenges and project costs you might incur. For our Asian readers please click here for a simplified chinese transalation. WHERE AND HOW DO I START MY DUAL OCCUPANCY Want to know how to do it or where to start? You can either use an experienced manager like us to guide you through the critical site and development analysis and then all the planning and building permit process which follows. A good manager will call for building tenders or have a go yourself; it will depend on the resources or skills you have available, and crucially the large amount of time to negotiate with the multiple government departments, the knowledge and experience to solve problems and some gritty patience to work through the day to day issues which may crop up. Start the ball rolling today.
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