The property investment industry offers potential investors so many options, and sometimes it can be difficult to determine a starting point. However, have you ever thought that maybe the solution to your investment needs lie in your property? Your suitable property investment solution could be dual occupancy. Dual occupancy is a kind of investment where two dwellings are built on one block of land. It is a viable investment that will not require you to undergo the complicated procedures involved in purchasing an investment property. Read on to find out more about this investment solution and how it can generate income.
What does dual occupancy entail?
The dual occupancy development is made of two units that may be attached to each other like a duplex or built as separate units. The two units have all the normal rooms, but with separate secure access. Most dual homes share common areas such as the entrance foyer. Once you build a dual occupancy home, you can rent one of the units and live in the other or rent the entire property. Whichever option you choose, dual occupancy homes have the potential to generate a higher return on investment within a short period compared to most investments.
Is dual occupancy right for you?
Before investing in dual occupancy development, it is essential to determine the viability of the project. Some of the factors that should guide you include the following:
- The amount of space available on your property: The property should have adequate space for building another home.
- Availability of parking space.
- Compliance with city council regulations: Ensure that dual occupancy buildings are allowed in your area and confirm any regulations associated with such construction.
If you meet all the above factors, dual occupancy development could be a sound investment for you. Consult with a surveyor about any logistics involved in the construction and connection of utilities.
How profitable is dual occupancy?
Determining the profitability of an investment project is essential in analyzsng its viability. If you are renting one or both homes, then you are likely to generate high returns. You can easily pay off the mortgage and make some profit as well. There are tax benefits associated with dual occupancy, and they can generate great savings. For example, if you build a new home and make it your primary residence while renting the old one, you will not pay capital gains tax for the new home. You can consult your financial advisor to get a rough estimate of the returns you are likely to generate from your investment based on expenditures and revenue earned.
Dual occupancy is a sound and profitable investment solution, but it requires adequate planning and organization. Engaging an experienced dual occupancy builder is an essential step in ensuring the success of the project.Share