Your NSW Guide To One Property, Two Homes

HOW TO SUCCESSFULLY DEVELOP YOUR BLOCK OF LAND

Understanding dual occupancy.

Dual occupancy (which is often called ‘DualOcc’) is a development which has two or more properties on a single block of land. It is also often referred to as a multi-dwelling, duplex or side-by-side development.

A DualOcc development can occur when you demolish an existing property, or it might simply be the best way to get the best return from an empty block you own.

Many dual occupancy properties have two attached dwellings side by side, but some have separate, unattached homes. Whether attached or separate, the homes can be kept under one title or, if you gain council approval, you may be able to separate the properties into two titles, allowing you to sell one or more after they are completed if you wish.

Metricon are Australia’s experts in DualOcc developments, and DualOcc by Metricon is an excellent option if you:

• want to downsize your home, but don’t want to move from your neighbourhood,

• have adult children or ageing or ill family members that you wish to live close to,

• or if you want to capitalise on your block of land and make a potentially profitable investment.

Dual occupancy allows you to get the most out of your land by utilising the buildable space you have to create an additional home or homes. Once completed you can:

• live in one home and rent the other,

• live in one home and sell the other,

• sell both the new properties.

Benefits of ‘DualOcc’.

To work out whether or not a dual occupancy investment is right for you, think about some of the benefits you could achieve. Here are some of the more obvious benefits a dual occupancy development can provide:

Live as you want to

Perhaps you love where you live, but your existing home has gotten tired, you’re looking to downsize or you just want a fresh start? Take this chance to build the home that’s right for your needs plus one other. As we say, “Don’t move your life, improve your life.”

Increase your return on investment (ROI) on your land

This is the most apparent benefit of dual occupancy and the main reason many thousands of Australians have invested in a DualOcc development. Building two homes on your property allows you to fully utilise your asset and make your land work harder for you.

Lower stamp duty

If you are buying a block to develop, DualOcc can save you significant money by reducing the stamp duty you must pay. You can keep both homes on the same title, meaning you will only have to pay stamp duty on the purchase of the land.

Fewer fees

If both homes are under the same title, you will not have to pay council rates for each building, or a body corporate fee.

Tax benefits

Depending on the route you choose, there can be tax benefits associated with dual occupancy. For example, if you decide to live in one house and sell the other, you won’t have to pay capital gains tax on the property you live in.

Live close to your family

Many families like to live near one another to create a strong network of support.

Dual occupancy is a great way to achieve this – for example, grandparents living closer to their grandchildren make it easier to spend time together and look after the children when Mum and Dad are busy, while still maintaining their own home and privacy. Elderly or unwell family members can live next door instead of moving to a specialised facility. Adult children can easily move out and into the new property to begin their independent life.

Help your children enter the property market

Dual occupancy can be a great way for parents to help their children enter the property market, while also creating an investment which sets themselves up for future retirement. They could invest in a dual occupancy home and have their children move into one of the properties, who can live there while they save to buy their first property.

Build your retirement nest egg

A smart DualOcc development is one of the simplest ways to build your property portfolio to invest in your future and build a nest egg for retirement. This is often called “bricks and mortar super”.

In all things, always ask your highly experienced Metricon DualOcc specialist for advice on how to make your dream come true.

Decide whether to rent, live in or sell the homes you’ve built

Let’s take a look at the different options you will create with DualOcc, so you can start to visualise how you could get the most from your land. Your specialist Metricon DualOcc consultant will advise you what’s possible.

You could choose to:

• Live in one new house and rent the second . You’ll be right next door to your tenants so you can foster a good relationship and ensure your developed property is well cared for.

• Live in one house and sell the other – selling a newly created home will give you a large sum of money that you can use to offset your mortgage and other debts, or help you to build a retirement nest egg.

• Live in one house and use the other for relatives or elderly family.

• Sell the whole development – dual occupancy enables you to sell all the new homes to separate parties should you wish, increasing your equity from the growth in the initial value of the property, and releasing funds for you to move elsewhere.

• Rent the whole development – having two or more homes to rent could yield you a higher return than renting out a single dwelling. The rental income also helps you to service the loan taken out to finance the development, giving you greater equity should you wish to pursue future investments. If one tenant decides to leave; you will still have a rental income from the other home.

Live in one house and use the other for relatives or elderly family.

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Is DualOcc right for you?

Everyone is unique and has different needs and goals. What works for you might not work for someone else. If you’re not sure if a dual occupancy project is right for your situation, ask yourself the following questions – it will only take a couple of minutes! These questions will help you determine whether or not a ‘DualOcc’ development is worth considering.

Is it affordable?

Dual occupancy can be very lucrative and give you a high ROI, but you must consider all the costs before taking the plunge. It’s a good idea to talk to an accountant to fully explore your financial situation. You need to be able to cover the costs of the build, site and excavation costs, fees for relevant professionals such as a conveyancer and town planner, as well as alternate living arrangements if you’re knocking down your existing home. Our sales consultants are DualOcc specialists who only work in dual occupancy, so ask their advice freely, too.

Do you understand the process?

Taking the time to gather information and gain a greater understanding of the process is essential and can help you understand whether or not this is the right path for you. Weigh up the pros and cons before making the decision. Metricon has a lot of resources to help you get started, like our “Home Truths” blog, and talking to our knowledgeable DualOcc experts. And talk to friends who have created a DualOcc development before – what went well? What didn’t? What do you need to be sure about in advance?

Will the living arrangements suit you?

If you plan to live in one of the homes, will the new situation be suitable for you? Dual occupancy will give you more privacy than an apartment, but less than living in a single property on a block.

Is it the right area?

Different areas will have different restrictions on dual occupancy buildings. For example, Hornsby and Ku-Ring-Gai councils don’t allow dual occupancies, whilst other councils such as Canterbury-Bankstown allow Complying Development Certificate (CDC) approvals which will let you fast track your build. Speak to your Metricon DualOcc consultant or local council or a town planner before moving ahead, so you are sure your block of land will be suitable.

Do you know a builder who specialises in dual occupancy homes?

Choosing the right builder is essential. ‘DualOcc’ is different from building a single home. At Metricon we have an extensive department which specialises in dual occupancy developments. We can help you every step of the way, minimising your stress and allowing you to utilise your land to its maximum potential. We can also help you navigate the legal requirements of your local Council and help you lodge necessary documents.

What type of buildings do you want?

If you’re going to live in the property its natural that you might be choosier about how the property is configured. But if you’re not going to live in the property, you can afford to be more flexible with your designs and cater closely to the council’s requirements from the word go, decreasing the chance of your proposal needing changes or being rejected.

Is your land suitable for dual occupancy?

There are several factors to consider to decide whether or not your land is suitable for dual occupancy. You need to check the rules and regulations of your local council to ensure your proposed building will meet the necessary requirements. Some things to consider are:

Size of the block – you need a block large enough to support two dwellings. Council rules will limit the size of floor area permitted on your block of land. Usually, your housing footprint cannot exceed more than 50% of your block. If you show us the external dimensions of your block we can normally tell you immediately what’s possible.

The slope of the land – the slope of your land will determine whether or not your property is fit to build on. A slight slope towards the street will be needed to allow for adequate drainage. A steeper slope will incur significant costs to level the land out and may also require installing a retaining wall.

Privacy and orientation – the direction your building faces may impact on the privacy of your near neighbours. For example, a second story window may overlook their backyard and violate their privacy, increasing the likelihood of objections, which could delay the planning process.

Local council restrictions – consulting your local council will ensure you understand the relevant requirements and help you determine whether or not your block of land is suitable for a ‘DualOcc’ development. It is far better to gather more information early in the process rather than risk making mistakes which could see your development delayed or blocked, or incurring costs you cannot recoup.

The good news is you don’t have to do this alone: as part of your journey we provide full town planning services to ensure you enjoy the best advice at every step.

We can help you navigate the legal requirements of your local council

Carefully consider the costs.

Many thousands of people have successfully created a DualOcc development. But before deciding to build two properties on your block, you need to conduct your due diligence and decide whether or not it is feasible for you.

If you proceed you need to have a budget and follow it. Not doing so could see your project be less lucrative, or you could end up not seeing the return on investment that you had planned. There are many expenses involved with undertaking a project like this, and they will affect your ability to make the venture profitable. Here are some of the costs you can expect:

• If you’re buying a block to develop, then the cost of the land

• Demolition of existing properties (if applicable)

• Site and engineering costs (levelling the block of land, removal of rock or trees, drainage etc.)

• Stamp duty (on any homes you decide to sell)

• Home loan deposit

• Interest or holding costs

• Sub-division costs (permit fees, access to services, driveway, landscaping etc.)

• Conveyancing fee

• Land surveyor’s fee

• Arborist’s report

• Town planning application fee

• Architect or builder

• Soil tests

This list is not meant to scare you away from the idea of dual occupancy – all investments have costs associated with them – this is just to give you some insight as to the costs you will incur throughout the process. In spite of these expenses, many people can make a considerable profit. Consulting a highly-experienced builder like Metricon will help you get a more specific idea of the total dollar amount you should expect to spend.

What is dual occupancy?

Dual occupancy is simply a development where there are two homes on a single block of land.

What are the different types of dual occupancy?

There are a number of different ways to create a dual occupancy property, and basically come down to creating either semi-detached (side-by-side) or detached properties. Choosing the right one depends on your specific circumstances and what you hope to achieve and we can advise you.

How can dual occupancy give you positive cash flow?

If you rent out one property, you can use it to pay off your mortgage. If your monthly rent is higher than your loan repayment and associated fees, you will be ‘cash flow positive’. You’ll actually be making money, every month. Consult a tax accountant about the effect on your tax situation.

Can I build a dual occupancy home anywhere?

Not necessarily. It depends on your block of land as well as the state and local council laws. Certain blocks of land will simply be too small or you may be in an area which restricts or excludes dual occupancy dwellings.

Here are some of the questions we get asked most about dual occupancy (‘DualOcc’).

How long does it take to build a ‘DualOcc’ development?

This depends on the size of the development, whether or not you have an existing structure on your property, the level of experience of the builder you choose as well as any local council regulations you need to factor in. Just ask us to give you an estimate of the likely timescales.

How much does a dual occupancy home cost?

This obviously depends on the type and size of the development you wish to undertake, however many people are able to increase their ROI in their land by as much as 40%.

Do I need to engage my own town planner?

No. As part of our DualOcc journey we provide full town planning services to provide you with the right advice at every step to achieve your development effectively and efficiently.

How can I determine whether or not my project is feasible?

When you visit our DualOcc expert, you will receive a review of your property and be provided with an initial feasibility to be able to take you through to deposit stage. The “Feasibility Deposit” of $3,000 then allows us to complete a full professional feasibility assessment from our own town planners.

FAQ

To Creating a Profitable DualOcc by Metricon Development

Key Steps

1. Choose Your Design Let your dreams run free! Enjoy browsing the designs on offer and then your specialist DualOcc Advisor will digitally plot the proposed development on your land to ensure measurements are correct and council regulations ? are followed. This will help you to maximise the potential of your land. We’ll also organise a soil test, contour survey and feasibility test from a town planner.

2. Sign The Contract We’ll take time to review all the information and make sure all legal requirements and regulations are being correctly followed. If you’re happy with everything, you’ll sign your HIA contract and pay a 5% deposit.

3. Select Your Finishes This is the fun part! Tour our unique Studio M selection centre and choose from a vast range of colours, fittings and home décor for your property. You’ll be assigned your own professional Studio M interior design consultant – their advice is free, by the way – so you get the most out of the process.

4. Development Application Sit back and relax while we prepare and lodge the Development Application to the council and organise approval for additional water and sewer connections as required.

5. Final Checks And Site Preparation We’ll complete final checks and make sure your block of land is ready for the building to commence and the slab to go down. You’ll be assigned a Site Manager to oversee the process and ensure everything runs on time and according to plan.

6. Your DualOcc Homes Are Built Watch as your new development begins to take shape in front of your eyes. Your site manager will be in weekly contact with you to provide updates along the way and you are welcome to visit the site by appointment. Once everything is finished and final inspections are conducted, you’ll get your keys and certificate of occupancy! Welcome home!

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Always start with a professional and experienced builder.

Dual occupancy might sound a bit overwhelming, but it really isn’t when you have the support of DualOcc specialists. Always remember:

Metricon are Australia’s No 1 home builder. We’ve done this thousands of times before, and we’ll help you get it right. We’d also be delighted to refer you to happy customers who can tell you their real life experience of DualOcc by Metricon.

It’s normal to feel concerned about the work involved. But if you think dual occupancy is the right fit for you and you want to make the process stress-free and straight forward, we can help. Metricon offers you a dedicated ‘DualOcc’ team who’ll work with you every step of the way – from site inspection and planning right through to successfully completing the project.

Along the way we’ll help you explore all the different options you have, taking into account the size and shape of your block and any local council restrictions you might face. We have a number of customisable designs, so you’re guaranteed to find the perfect solution for your lifestyle and building needs.

DualOcc by Metricon even handle the legal side of things with your local council’s town planning department to save you the stress of doing so. That service alone will save you time, money, effort and anxiety.

Working with us, you’ll get a dual occupancy development which maximises your land and gives you the highest possible ROI. Plus your home will be covered by our lifetime guarantee, so you can rest easy knowing you’re protected if anything goes wrong. For more information on our Lifetime Structural Guarantee visit metricon.com.au/terms-conditions.

So click the link below to find out how we can help make your dual occupancy journey a simple and successful one!

Start Your Journey Here