A dual occupancy is two separate dwelling houses on a single lot and is commonly known as a duplex. It could also be two dwellings within a single community title or one body corporate scheme.

Dual occupancies allow for each dwelling to be separately serviced or sub-metered. The two dwellings can have a similar gross floor area and separate street addresses/letter boxes.

You would have an address like 1a or 1b

Individual councils will have rules for dual occupancy. It is different to a secondary dwelling.

Benefits of Dual Occupancy

Building two smaller homes has similar costs to building one larger house but you half the land cost for each dwelling. This allows landowners to maximise the financial potential of the land.

By building two homes and selling one to pay for the other, you can substantially reduce an existing mortgage or reinvest the income. In other cases, the second dwelling could be kept as an investment property to generate rental income and build wealth over time. Keeping a loan on the second property also allows you to take advantage of negative gearing to maximise taxation benefits.

Other benefits include:

• The ability for "empty nesters" to downsize without leaving their home and familiar neighbourhood
• Supplementing retirement income by renting the second dwelling
• Living next door to your tenants lowers the chances of damage, missed rent payments and other issues
• Reduced day-to-day maintenance with a smaller dwelling
• Investors can rent both sides out to maximise yields as these properties are very likely to be cash flow positive
• Use the second dwelling as a granny flat or teenage retreat if the kids can't afford to move out or a grandparent needs looking after.