Investment property in Australia is a hot commodity; Not only can you increase your real estate investment portfolio, but you can also use your investment property to earn additional income for your family. One of the ways to build up an investment property is to buy or build a duplex or other double occupancy property. A double-occupancy residence may be detached or semi-detached, such as an apartment above the garage or a detached building on a property. When building a duplex, the tips and advice of those who have been in your situation will be of great help to you before and after you begin the construction process.
know the law
Building a duplex, or granny flat, requires knowing a bit about real estate law. You may not build any structure without the proper permits and you should never build any structure for investment purposes without first consulting an accountant about the tax you must pay on the sale of the duplex or the money you earn from renting the duplex.
Meet all council building requirements
In addition, your duplex must meet all relevant and required structural, height, floor space and other restrictions before it can be built. This requires making a plan of the structure and including all the relevant details of the building. However, you can add to an existing structure to convert it into a duplex or build an entirely new structure on vacant land.
What will you use the duplex for?
Before you begin construction on your duplex, there are a number of other factors you need to consider. The first is what you plan to use the duplex for. Many people commonly take advantage of these granny flats as a way to care for older members of the family.
Adding a granny flat, or duplex, gives you the space and privacy you want, as well as the proximity needed to care for your elderly parent or grandparent. Others use their granny flats as an apartment for recent graduates looking to move away from home for a little more privacy; Since many graduates can’t afford a place of their own until school is over and jobs are secured, parents let their children stay in their duplex while they go to school. The situation is win-win for both parents and their adult children.
Your other option is to rent the duplex to someone outside of your family. This investment method generates income for you by renting Grandma’s apartment to someone with a contract that requires you to pay a fixed amount of rent each month.
Why choose a duplex?
Duplexes add value to your home when you decide to sell. The addition of a detached home is something that buyers see as an improvement, which also allows them to use the structure for investment purposes in the same way that they did before choosing to sell their home.
These double occupancy homes are perfect for investment reasons, in-laws, visitors, elderly relatives, or your children when they are old enough to move out of their primary residence.
Tips and Considerations
Now that you’ve made the decision to build a granny flat, or duplex, on your property, there are a few tips and tricks to follow. The first is that you always include the necessary accommodations to the duplex. You will get more money and more potential tenants based on the duplex’s amenities.
Furthermore, the structure cannot be considered a duplex if it does not have a bathroom, kitchen and living room. You can make the structure a “studio” type building, which has a bathroom and a kitchen and the rest of the living space is used as a living room, dining room and bedroom. However, the larger your duplex, the more potential tenants you will have. At least one bedroom will get you much more in monthly rent than a studio duplex.
Another consideration is access to your home. If you attach the duplex to your home and use it as a rental or investment property, you don’t want your tenants to have access to your home, which means you need to make sure the duplex has its own outside door and no access. to your house.
Design
Consider using building materials that are sturdy and visually appealing. Pain the duplex has a neutral color that most people will find attractive. If you plan to allow children or pets to live with their families, you may want to consider a hard floor like hardwood or tile and avoid light-colored rugs that get dirty and stained easily.
Talk to the right professionals
Always get advice from the right people before building a duplex! Talk to your accountant, carrier, attorney, and mortgage broker. They will help you make informed decisions.
