Can a dual occupancy be sold separately? Generally, no. But there is a way it can be done.
Colin Fragar, our founder and CEO, shares the secret to selling a dual occupancy separately.
Click on the “Play” button below to watch now:
Or for those that prefer to read, here is a transcript of the video…
My name is Colin Fragar from the Council Approval Group.
I’m happy to say that the answer is yes, but only on specific conditions. So if you haven’t already, please grab a copy of Secrets of Property Millionaires Exposed. I have a whole chapter on this investment strategy.
But let me run you through just the small, finer details. So a dual occupancy, in general, cannot be sold separately because you need two dwellings on the same title. That’s what a dual occupancy is. However, a dual occupancy can be subdivided in certain particular circumstances and in a lot of local government areas across Australia. It’s actually a beautiful way to depart from the minimum lot sizes for dual occupancy and we’ve done this for thousands of clients.
Imagine you’ve got two dwellings on one property, you’ve got to sell them together. But what if you could get them into two separate titles?
If you do the sums, how much extra money would you be able to release from your property? Even if I only had a $500,000 property, if you are able to split that into two, you’re looking at literally $300,000 to $500,000 worth of profit, at least in a conservative market. It could be millions depending on where you are in Australia.
So Can a Dual Occupancy be Subdivided?
The answer is yes.
Let me just draw you a little diagram to show you what I mean. So this is one that my wife and I are actually working on at the moment. We’ve done a few of these now and this one is on a corner lot. It has an existing house on it and we’re not able to get what we call a detached dual occupancy. So this is actually going to be an attached dual occupancy.
We’re going to build a carport on the side, a double carport, one for the old dwelling, and one for the new dwelling. Now we have approval, through the Council Approval Group, of course, to subdivide it. As a result, we’re going to be selling off this existing front house to reduce that debt level. We will keep the new house behind because you’ve got the depreciation benefit on a new dwelling which you don’t necessarily have on an old dwelling. And we’re going to keep that house over the long term.
How We Can Help
So that is a dual occupancy subdivision and you can look at other videos on that. But please, if you haven’t already, make sure you grab your copy of Your Ultimate Guide in Achieving Council Approval available from our website.
If you would like to have more of a discussion about this strategy and how it can benefit you, please book in for a consultation with one of our council approval staff.