How to start a dual occupancy subdivision on my propertyWhere do I start my dual occupancy subdivision? How do I dual occupancy and enjoy the benefits? A dual occupancy occurs when a permit is granted by your local Melbourne Council to build two dwellings on a block of land which can then be subdivided to create two individual lots of land. Yoiu can sell one lot or keep and build for additinal rental income. You enjoy sound depreciation benefits if you can hold the new dual occ home. Before you prepare to obtain town planning permission for your dual occupancy or property subdivision you should ascertain a site analysis which will tell you: (a) what is allowed on the land and then (b) the size and built form of the dual occupancy home(s) from which you can do a cost analysis. If you need more detailed advice, please visit us for an obligation free site analysis. _We give you an expert opinion and honestly tell you if you can or cannot subdivide your property obligation free. www.auarchitecture.com.au Dual Occupancy development types. Dual occupancy or for that matter triple occupancy developments could retain the existing house and build one or more new house (s) on the backyard or in the front yard or on the side depending on size, depth, access and how one meets the local planning requirements. Other forms of dual occupancy developments occur when the existing house is demolished to make way for two brand new houses which could be one behind the other called a tandem design or be side by side which is called a duplex style development. In both instances access, site frontage, depth, orientation play a key part in the design. The typical dual occupancy development is the tandem style arrangement where the dual occ home is behind the original home. When the existing house is retained in the dual occupancy development, one’s capital is preserved because the asset purchased, that is the house on the land, is retained. The house has value so think twice before you consider demolition! The only time one should consider demolishing the house in a dual occupancy development is if the house is in very poor order or there has been significant growth in the value of the property. In Australia- and in particular Melbourne and Sydney, there are suburbs where the value of the land outstrips the value of the actual house! In most middle and outer suburbs the houses have great value as it generates rental income and is easier to finance by typical lenders. For example, if the house is retained in the dual occupancy development, banks could lend 80-95% of the value of the property. If the house was demolished, banks tend to lend only 65-70% of the value of the land as the house has been removed. This preservation of capital in the eyes of the lender reduces the risk because if, for any reason, the development does not go ahead, the asset retains its value. Even after the redevelopment, the value of the existing dwelling is by and large retained. The existing dwelling also generates cash flow during the planning process and in some cases even when the development is underway. This cash flow cannot usually be generated from a vacant allotment. Dual Occupancy Benefits Dual occupancy developments are profitable because it maximises the value of the land. Two houses generate two rental incomes. Even if you sold say the existing house chances are it will be free of capital gains tax which might pay off your mortgage, any debts or release cash to be used for other worthwhile ventures. Very often, after the dual occupancy subdivision is completed, the original home is sold for almost the price one paid for the whole block of land with the house. The second house then becomes the cream. Contact us for a detailed report on your property subdivision venture. AuArchitecture. Melbourne We are a lateral thinking architectural design and town planning practice excelling in dual occupancy permits and multi unit property subdivision. Our founder managed hundreds of planning and subdivision permits from councils in greater Melbourne for dual occupancy and multi unit property developments with real success.
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