The duplex or dualoccupancy is back in vogue. It is now one of the most preferred options for real estate investors and some of the most astute home buyers in Australia who are want to maximize on the value.
The appeal of the duplex or dual oc is further helped by the fact that land is a limited resource in bigger cities and something’s gotta give. And what gives are the large single-family homes that are being knocked down to pave the way for duplex or dual occupancy dwellings. The advantages of these dual occupancy houses are numerous. The houses sit by side (with a common) wall and make the most of fast dwindling lots. Duplex developments also lend credence to the government drive for increased housing density to ensure optimal resource utilization.
The Cost Factor
Apart from the scarcity of land, the cost of homeownership is rising fast across Australian towns and cities. Australian cities such as Sydney are ranked as some of the most expensive ones in the world to own a home in. The duplex development provides one of the most practical options through which you can make the numbers work for you.
Duplex constructions generally have very impressive returns especially where the developments are constructed in the older close-in neighborhoods that buyers value. This is usually prime real estate and a duplex development provides the most affordable entry point, pricewise, in some of these very exclusive neighborhoods. For real estate investors, it can pay off handsomely as the dwellings will literally fly off the market.
Making Way for Duplexes with a Knockdown
Thanks to the value of the duplex developments, a growing number of Australian buyers and property investors are now knocking down existing old single-family homes in order to make way for a duplex. This is usually a prudent option if you have sufficient space and the existing home is old beyond repair or will probably cost you a fortune in repairs and updates. In such settings, a duplex development generally offers the most efficient use of space.
Here are some key reasons why you should consider constructing a duplex after a knockdown:-
1. Take Advantage of the Strong Rental Demand in the Cities
In cities such as Sydney, there is now a strong demand for duplex rentals. So preferred are these developments that many Sydneysiders are willing to pay a premium to afford themselves the duplex lifestyle. Many real estate analysts now regard the duplex developments as the quiet over-performers, giving developers or investors a great ROI on the real estate market.
Many renters in Australian cities prefer the duplex over flats not just for the space that it affords but also the location and the lifestyle. A duplex house is also a much affordable option-the compromise- for renters that have the means to rent themselves a home.
2. Make the Most of Expensive Land
The cost of blocks of land has grown so exorbitant that it is out of reach of many developers. Blocks of land are most expensive in Sydney where the median price is $410,000. The prices continue rising exponentially. In older established neighborhoods, land is likely to cost you a fortune. Given the substantial costs of lot acquisition, a dual occupancy house is likely to give the best yield for many developers. It allows them to maximize on small lots to put up a dual investment that gives a faster ROI than single-family homes.
3. The Allure of Duplex Living is Just Too Strong
In big cities such as Sydney where apartments are now the most accessible thing for many middle classes, the duplex dwelling are proving quite attractive for people looking for more spaces and a little bit of luxury living.
Over the past years, this particular niche has seen a strong rental demand. The trend is expected to continue over the long haul so duplex investments are expected to pay off for a very long time.
Compared to multi-family units, duplex dwellings are also preferred for the privacy and comfort that they can afford. If you hate a multi-family unit and can’t afford a location in Mosman or other popular addresses with nice single family home, a duplex development can be the next good thing for your housing needs. It offers you a more private space for your family and vehicle parking in a duplex development is generally a lot more convenient than parking in flats or an apartment block.
Many young homeowners and first time homebuyers including young professionals see duplex developments as an upgrade and a premium rental opportunity. When sold as a unit to a single buyer, the house can be split to serve various needs. For example, grown kids can occupy one of the duplex. Families can also pool resources to build or buy a duplex and save on the cost of buying single-family home or expensive lots. This will in the end make the modern duplex housing a lot more affordable for both buyers. With a duplex development, you can be sure you are getting the most bang for the block!
4. Duplex Developments Work for the Government Clamour for Increased Density
It is not just duplex investors who are motivated enough to make the most use of limited spaces. Policy makers have been pushing strongly for increased housing density inbroadacre developments so as to ensure optimal utilization of infrastructure. They make tweaks here and there to steer the market towards increased density.
Due to their high density, compared to single-family homes, duplex developments are able to make optimal use of various public infrastructure and resources such as water, sewerage and gas. They are the antidote to broadacre development that is a defining feature of housing developments in cities, in locations such as Western Sydney, West Melbourne and North Melbourne. A duplex development can be done on a lot size as small as 450 square metres but regulations vary from council to council.
There are lots of variables when it comes to duplex developments. The most important thing is to know the rules. The lot of land where you are planning to knock down an old single-family dwelling and build a duplex must have the right zoning. There are varied zoning restrictions that you should be cognizant of such as the width of the land and the minimum area requirement.
The rules are not uniform across all cities or even with each city. They can change depending on the council. Before you venture into a duplex construction, make sure that you understand what is permissible in that council.
The most important thing is to determine if duplex developments are even allowed in that area under the council’s planning regulations. The size of the block along with the frontage must also meet the minimum threshold that is required by the local council planners. The block must have adequate sewer drainage and stormwater drainage. Your duplex development proposal must also satisfy the local planning controls such as the height of the building, the floor-space ratio, setbacks, landscaping, privacy requirements and the minimum subdivision lot size in the area where you are planning to build your duplex.