Are you planning to buy a new house in Australia? Is this the first time you are investing in Australian real estate? Do you have a very limited budget to buy your first home?
If your answer is in affirmative for all these questions then you should be looking to invest in the dual occupancy or the duplex homes in Australia and are confused by the similarities and differences between the two. Keep reading this article to clear all your doubts regarding the dual occupancy and duplex in Australian real estate. First, let me explain dual occupancy with its benefits and drawbacks.
What is Dual Occupancy? What are the Benefits of Dual Occupancy? What are the Drawbacks of Dual Occupancy?
What is a dual occupancy property in Australia?
A dual occupancy home is the most common type of property in Australia in which the same piece of land is held under one title despite the existence of two unique types of residential houses on the same lot. Such real estate properties are called the dual occupancy properties in Australia because the same peace of land has two occupants or families living in two unique houses despite holding one title for the both. Whereas the duplex is two unique residential houses constructed on the same piece of land while each house having its own title.
Whether it is a dual occupancy house or a duplex in Australia, each has its own set of benefits and drawbacks. So, if you are considering purchasing any of these two residential houses in Australia, you must be aware of all the benefits and drawbacks of both. Here are the benefits and drawbacks of buying dual occupancy homes and duplexes in Australia. I hope this will help you choose one that best-suits your personal and financial goals.
What are the benefits of dual occupancy homes in Australia?
Dual Occupancy Homes Are Best for All Locations
The dual occupancy homes are the best for all locations, no matter if it is a congested one in an urban area or an open one in a rural farm. The dual occupancy properties also let you split the cost of construction with the occupants of the second houses by letting it on rent or constructing on their own.
Dual Occupancy Homes Boost Increase Your Earnings
Since you have two unique homes in the dual occupancy property, you can choose to live in any of your choice while leasing or renting the other at the same time.
Dual Occupancy Homes Require Less Maintenance Costs
When you are living in a dual occupancy house, you need to pay only one set of bills as the property is considered as a single estate despite having two occupants who share the cost of maintenance of their own residential unit.
Dual Occupancy Homes Are Perfect for Senior Couples
The dual occupancy homes are perfect for senior couples are they could use the one for their own residence and the other for residence of their children or grand-children or tenants.
Dual Occupancy Homes Require Single Strata Fee
When you buy a dual occupancy home, you pay one strata fee despite having two separate homes because both are built on the same piece of land under a single title. Thus, you are not saving the money but also increasing it by renting or leasing the second house on the same land.
While there are many benefits of the dual occupancy homes, they also have certain drawbacks.
What are the drawbacks of Dual Occupancy homes in Australia?
Dual Occupancy Homes Restrict Your Social Interaction
As the dual occupancy homes have several rooms in two different houses on the same piece of land, it becomes very easy for the occupants to isolate themselves into their own rooms or house when they feel lonely or stressed. Thus, reducing the social interaction of occupants who are living under the same roof but in different rooms or houses.
You Cannot Sell Both Houses of Dual Occupancy
None of the occupants of the two separate houses of a dual occupancy property can sell both houses on their own as both are built under a single title.
Dual Occupancy Offers Shared Responsibilities
As the dual occupancy offers shared responsibilities to the both occupants, it sometimes becomes a drawback when the other occupant does not contribute equally in maintenance efforts and costs.
Dual Occupancy Offers Less Privacy
Both the occupants of the dual occupancy property enjoy less privacy as they are sharing their wall and yard with the other occupant. To avoid the disturbance of the other occupant, you may be required to limit the number of people in your own occupancy.
What is Duplex? What are the Benefits of Duplex? What are the Drawbacks of Duplex?
What is a duplex in Australia?
A duplex is a single residential building in Australia with two separate houses on a single piece of land under one or two titles. Generally, Australian duplexes have a single residential house divided into two similar halves by a central wall. As both halves could have their own titles, they could be sold together or individually, depending on the need.
Each separate house of a duplex has its own entry/exit, driveway, bedroom, living room, kitchen, bathroom, garden, and garage. Also, each separate house of duplex has its separate mailing address like the 2023 A and 2023 B on the same street.
What are the different types of duplexes in Australia?
In Australia, you can find four common types of duplexes.
- Single Storey Duplexes in Australia – The single storey duplexes in Australia are the single storey residential houses that are divided in the middle by a vertical wall.
- Two Storey Duplexes in Australia – The two storey duplexes in Australia are two storey houses that are also divided in the middle by a vertical wall.
- Horizontally Divided Duplexes in Australia – The horizontally divided duplexes in Australia are divided into the upper and lower houses.
- Battle Axe Block Duplexes in Australia – The battle axe block duplexes in Australia have one duplex behind the other.
What are the benefits of Duplexes in Australia?
Duplexes Saves Your Money on Land Purchase
When you buy a duplex in Australia, you get two separate homes on the same piece of land. Though both are smaller in size, they save your money on the land purchase for two separate homes as they will require more land.
Duplexes Offer Premium Location for Lower Costs
In most cases, the price of a duplex is nearly half the price of an independent home on a larger piece of land. Thus, they are more cost-effective than the independent homes. Also, they allow you to live in a premium location for lower costs, thanks to their smaller size when compared to independent homes in the premium locations.
Duplexes Can Accommodate More People
When you purchase a duplex in Australia, you can easily accommodate more people like your grandparents or older children in the second separate house of the same piece of land. The duplexes are the best solution to offer privacy between the family members with the ease of access.
Duplexes Are Less Crowded Than Apartments
Living in a duplex in Australia could save you from the inconveniences of living in an apartment. First, you save on the maintenance costs. Second, you need to deal with only one close neighbour in a duplex compared to dozens while living in an apartment.
Duplexes Have Less Maintenance Costs
While the amenities of the duplexes in Australia are smaller than the regular homes, they have their own set of benefits. The smaller size of amenities in a duplex are easier to maintain than the larger ones in a regular home. Also, they require less maintenance costs than the amenities in a regular home.
What are the drawbacks of Duplexes in Australia?
Duplexes Have Privacy Concerns
When you buy the half of a duplex in Australia, you might have some privacy concerns due to your proximity with your neighbour. This is the biggest drawback of the duplexes.
Duplexes Require Your Neighbour’s Consent
When you live in a duplex in Australia, you need to seek your neighbour’s consent for the important things like the construction or renovation of your separate house. Sometimes, you also need your neighbour’s consent on the insurance policies as they will cover both separate homes.
Duplexes Require Your Tenant’s Consent
If you own the entire duplex in Australia and live in the one separate home while letting the other on rent, you need your tenant’s consent on the construction, renovation, and insurance of the separate home they have on rent.
Duplexes Are Less Spacious Than Independent Houses
For the obvious reasons, the duplexes in Australia offer you less space compared to the independent houses. So, if you are not comfortable with the smaller-sized amenities and willing to spend more for the ample space, you might be more satisfied buying an independent house in Australia.
Dual Occupancy or Duplexes: What Should You Buy?
Like any other investment, you need to do a lot of research before deciding to buy a dual occupancy or duplex in Australia. You also need to consider all the benefits and drawbacks of the dual occupancy homes and duplexes in terms of your requirements and budget to make a wise decision. Moreover, you must consider the location, layout and structure of the dual occupancy homes and duplexes in Australia before deciding to buy any one of them.
With the right research and planning, you can make your investment in the Australian dual occupancy homes or duplexes a cost-effective or the profitable one.
Note: You must consult an accredited real estate agency for professional investment advice on buying a dual occupancy or duplex in Australia.
