Home values are skyrocketing. Rentals are hard to come by – and if you can find one, they can be expensive. So, it’s little wonder more Victorians are choosing to unlock the equity they’re already sitting on, by knocking down their existing home and undertaking a dual occupancy project.
Boutique Developments Consultant, Andrew Nixon, has been in the building industry for over a decade and has specialised in the dual occupancy space for the past six. ‘I’ve never felt more positive about the industry’s future. Dual Occupancy builds continue to go from strength to strength.’
‘More and more Victorians are understanding the value of a dual occupancy build, especially given current market conditions,’ says Andrew.
‘With land values and rental yields so high, maximising the value of a larger lot by building multiple homes instead of one makes a lot of sense.’
Why build dual occupancy now?
A mix of savvy investors, owner-occupiers, downsizers, and those just wanting to capitalise on their land are making the switch to dual occupancy. With dual occupancy, you get the best of both worlds: one block of land with multiple fully-fledged 22 to 31 square houses, with all the mod-cons to capture an ever-expanding market.
‘Many people choose to live in one of the homes while renting out the other as an investment,’ says Andrew.
‘Dual occupancy also becomes a very affordable option if you sell off one of the homes while living in the other – you can reduce your debt while still building a beautiful home to live in.’
The key is to capture the market while it’s hot and to start the process early. ‘Remember that a dual occupancy project is an 18 to 24-month process, so you need to jump into the market quickly to reap the rewards in 2023 and beyond,’ advises Andrew.
Forming a Dual Occupancy strategy
For Andrew, securing a good dual occupancy investment requires having a clear goal. With the help of a Boutique Developments Consultant, you’ll be able to form a clear idea of your strategy upfront.
Is your development a pure investment or could you potentially live in one of them? Are you looking to make your money via rental yield or resell prices? And what type of buyer are you targeting – young families? Single corporates? Downsizers?
All these questions will inform where and what you build.
‘You want to create an investment that captures the biggest portion of the market, without isolating the top or bottom end,’ explains Andrew.
‘Everyone wants to create a home that is ‘different’ or ‘unique’, but it needs to be different for the right reasons and you don’t want to spend unnecessary money getting there.’
The takeaway? Do your research and listen to your specialist Developments Consultant – they’ll know the questions to ask and have the experience to create the right solution for you.
Have someone there to guide you through the entire journey
While a dual occupancy undoubtedly has its benefits, it can also be a complicated process if you don’t have the right builder there to guide you through the entire journey.
‘While financially viable down the track, dual occupancy projects can be a costly venture upfront, so it’s incredibly important you’re working with a quality builder who is transparent about their process and pricing upfront,’ explains Andrew.
‘Boutique Developments is a full-service, end-to-end builder. We work with our clients through the entire process and guide them from initial product selection, through to town planning, demolition and all the way to landscaping of their finished development, ready for subdivision’, says Andrew.
Things to consider when building Dual Occupancy
For Andrew, the correct dual occupancy investment strategy comes down to:
- Get the layout right: The beauty of dual occupancy is that you aren’t building two apartments. You are creating two townhouses that have all the features of a fully-fledged home but on a smaller footprint. ‘Boutique Developments puts a lot of work into creating versatile and logical dual occupancy home designs that sell and rent well. But we also pride ourselves on our flexibility, and you can always personalise those layouts to fit your individual goals,’ says Andrew. ‘Having a townhouse layout that resembles a house is critical. Think features such as downstairs bedrooms, a fully-equipped laundry, and plenty of storage, and bench space in the kitchen.’
- Choose specifications that matter: Spend money on upgrades where you’ll see a significant return on investment and on the permanent items that are difficult to renovate later. ‘For example, increased ceiling heights make a huge difference to the look, feel and appeal of a home,’ explains Andrew. ‘Amenities that will make a renter or future owner-occupier comfortable are also important, such as heating and cooling units and butler’s pantries.’
- Choose your builder wisely: Getting the right advice and transparency upfront is paramount. You need a solution focussed development process so your project fits your personal needs, goals and budget. ‘You need to know exactly what you’re going to pay upfront, especially if your dual occupancy build is an investment. Any strategy can be quickly undone if quoted prices and timeframes blow out,’ says Andrew. ‘Boutique Developments put a lot of work into a project before a deposit is put down, with no tender process required. Ask your builder about upfront and transparent pricing, and whether your new build includes a full turn-key solution – including demolition, driveways and landscaping – as part of the price.’
- Find a builder who is with you for the entire journey: ‘Make sure your builder will be there from the very beginning of the process, right through to maintenance once you have the keys to your new project,’ says Andrew. ‘Not only is Boutique Developments there to help you through the planning process and build itself, but we also include a 12-month Boutique Assist aftercare warranty and a 25-year structural guarantee with every build.’
Have you found ‘The One’?
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