What is a dual occupancy, and how is it different from (or similar to) a granny flat?

Whether you are creating a living space for extended family members or you’re looking to generate extra income through an investment opportunity, there are a few different ways you can maximise your existing block of land.

In this guide we break down the differences between two of the most popular avenues homeowners tend to choose between: dual occupancy homes and granny flats.

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Key takeaways

  • Dual occupancy refers to two dwellings on a single block of land with a single title, either attached or detached.
  • It offers financial benefits like shared land costs, potential rental income, and capital preservation by maintaining existing structures while adding new ones.
  • Local zoning laws and council regulations dictate the feasibility and design of dual occupancy developments, emphasizing lot size, building height, and access to off-street parking.
  • Dual occupancy is distinct from duplexes, which may have separate titles allowing for subdivision.

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What is dual occupancy?

Dual occupancies are two separate dwellings that are built on one piece of land that cannot be subdivided – this means the two dwellings are on the same land, under the same single title.  There are two types of dual occupancies – attached and detached. 

Most dual occupancy developments share communal spaces between the separate residences, for example a car park or access to a driveway.

What are dual occupancy developments?

Dual occupancy developments will either consist of:

  • A single detached home that is rented out, therefore providing an additional income stream
  • An existing house with an attached dwelling
  • A completely new construction which will need to factor in council approval, location, access to the main road, and much more

A dual occupancy home can also include a demolished space that is being built into a new house, one behind the other in a duplex-style development. In both instances the vehicular access, site orientation and street frontage of both dwellings plays a role in deciding future market value.

What are the benefits of a dual occupancy dwelling?

A dual occupancy property shares the same sale value as the land value being shared by two dwellings. As a result, the land price is reduced to half.

It’s also easier to preserve one’s capital in a dual occupancy project because not only do you purchase the land but also retain the existing house on the land.

Additionally, dual occupancy allows one to:

  1. Develop and maintain an unused backyard
  2. Make a sale for a new property subdivision
  3. Earn rental income with dual occupancies

What rules exist for a dual occupancy?

Dual occupancies are governed by local zone planning requirements and codes, mandated by the state government.

Homeowners can check the existing property’s planning zone to determine which planning codes apply to the main dwelling location. If your primary dwelling is a dual occupancy home, the second dwelling building must adhere to strict guidelines which include:

  • Maintaining a minimum lot size depending on the local council area requirements
  • Maintaining a maximum height which should not exceed 8.5 metres (above ground level)
  • Ensuring each dwelling has access to one off-street park and must face a public road.

Is a duplex similar to a dual occupancy home?

It’s common to mistake a duplex for a dual occupancy home but it isn’t so.

Duplexes can be listed with separate titles, meaning the land can be subdivided amongst plot owners. Even though two households may share a common wall, they are considered two dwellings with separate titles. It’s an excellent option for first-home buyers on a budget as you only pay up to half of what it would cost to buy a single detached house, with the same aesthetics, in the same block.

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Dual occupancy vs a granny flat

Now you understand dual occupancy, let’s break down what a granny flat is and how it compares.

A granny flat is defined as a self-contained secondary dwelling or unit built on an existing property. The secondary self-contained home can be attached or detached from the main house and is a part of the same title.

Granny flats usually contain a bedroom, a kitchenette, a dining and living area, and bathroom/laundry. You can also get granny flats in one-, two- or even three-bedroom designs. Some designs can even include additional structures like a porch or garage as well.

What are the benefits of a granny flat?

Granny flats are an affordable housing option for elderly people who want to live independently but still want their growing family in close proximity.

Given the continuing rental crisis in Australia’s major cities, Granny flats are also becoming an attractive option for tenants looking for adorable rentals. This also means an extra source of income for homeowners with backyard space to spare – a win-win!

And if you’re keen to get on the first rung of the property investment ladder, buying and building a granny flat behind your primary residence is usually a more affordable process than purchasing a whole new property. That means you can kick start your property journey without taking out a sizable loan.

Decided on a granny flat?

Whether you are an investor looking to unlock extra rental income, a family looking for more space to accommodate children or elderly relatives, a business owner needing an office at home or are simply looking for an extra entertaining area, we have a design to suit you.

Each of our granny flat designs is the result of years of problem solving, intentional design, and refinement that culminates in the most functional and beautiful buildings that work within the constraints of a granny flat. 

If you would like more information, take a virtual tour or contact our team today and we’ll answer all your questions.





 


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