Dual living properties, such as duplexes and blocks with a granny flat, are not only great options for investors to increase their rental yield on a single investment but subdivisions are also becoming more appealing to owner occupiers who are purchasing a property as a multi-generational household. It’s a great way for property owners to give their family members a bit more space but still keep them close by – with the home owners in one dwelling, and their elderly parents or children in the other.
While most people look for houses ripe for renovation, the serious money can be made from situations that allow multiple dwellings on one piece of land.
When local zonings allow a second dwelling to be built on an allotment, the land for the second house is essentially free (except for subdivision costs), and that provides great potential for profit.
It provides many options for investors: the existing dwelling provides rental income while the new project is happening; investors can keep one rented out and sell the other; retain both rented out; or sell both.
For many investors, opportunities like that are gold.
One way the council intends to facilitate these opportunities is with higher densities in residential areas. Depending on the location and the zoning, property owners will be able to build a second dwelling on land that currently contains only one, in some cases attached and in others detached. The best prospects will be corner lots that can be subdivided into two.
We have panel lenders that will finance properties with two self-contained dwellings on one title at up to 95% of the property’s value. Insured loans are subject to approval.
Properties where there are three or four fully self-contained residences on one title (i.e. not subdivided / strata title) the maximum LVR considered is 65%.
