Can You Increase Your Income with Duplex and Dual Occupancy Builds?

A dual occupancy build is when 2 independent homes are constructed on a single block of land. They can either share a wall, as with a duplex, or stand as a separate detached dwelling.

In the past, local councils have restricted dual occupancy builds by either requiring them to be built on large land blocks or by banning them altogether in low-density zones. The housing crisis has seen several state governments and local councils cutting the red tape to fast track new builds. This has seen a significant rise in dual occupancy builds over the past few years.

What Local Government or State Government Rules Apply?

Before undergoing a dual occupancy build, you need to consider the complex zoning rules that apply. Check with your local council as to their requirements. Sunshine Coast Council generally accepts dual occupancy builds in low density residential zones outside LDR1 and in medium density zones with a minimum 15 metre frontage. In high density zones, dual occupancy builds are not a listed use. 

What Else Do I Need to Consider?

Whether you decide to add another dwelling alongside an existing building or do a complete knockdown rebuild and then build a duplex or two individual dwellings depends entirely on how you plan to use the property. You could decide to live on the property yourself and rent the other building or create multiple income streams for yourself by renting both. If you do decide to do this, there are several important points you need to consider. 

Dual occupancy can be on separate titles and sold individually, but usually only if land and design meet local council and state government requirements from the start of construction. You need to check with your local council zoning to ensure they permit dual occupancy builds and the subsequent subdivision in your specific residential zone. Separate titles require independent utility connections for water, power and gas if required. It’s often either extremely expensive or impossible to do this after the fact. 

Aside from the housing crisis, many homeowners are now resorting to dual occupancy builds to maximise their cash flow. You can live in one building while leasing the other to help pay off your mortgage or create double the rental income by creating two streams of rent. Local council and state government rules usually require each dwelling to have separate, independently metered utility connections, including electricity, water, waste, telecommunications and gas to allow individual billing and tenant compliance.