In this video, Colin Fragar, our founder and CEO, talks about these two development options and third option you may not have considered.
Click on the “Play” button below to watch now:
Or for those that prefer to read, here is a transcript of the video…
So which is better – a dual occupancy or a subdivision? My name is Colin Fragar from Council Approval Group.
So the question often gets asked, ‘Which development type should I go for – granny flat, dual occupancy or subdivision? Today I specifically want to talk about dual occupancy and subdivision. Which one do we go for?
Let me just share my slides here. I want to show you something to maybe just to change your thinking a little bit about what’s possible.
Dual Occupancy or Subdivision – What’s Possible?So here’s a one into two lot subdivision and let’s say we’re just doing a small subdivision. Okay, so you’re thinking, ‘Alright, do I subdivide my land? Or do I have a dual occupancy?’ The benefit of dual occupancy is obviously extra income. If you’re going for the subdivision, then the reason why you’d be looking at that is probably to release some equity to be able to sell off half of it, or all of it and then go on to the next project.
There are some fundamental differences between both. With subdivision, you’re looking at equity release, you’re looking at return on investment from the sale. Dual occupancy, you’re looking from the return on investment from the rental income. However, what if I told you that you could do both together.This is what we call a dual occupancy subdivision. It’s actually my favourite investment strategy. It’s one that I talked about in Secrets of Property Millionaires Exposed in my chapter there. I highly recommend that. It is possible in some local government areas but not everywhere, so please make sure you talk to Council Approval Group to see if it’s possible on your site or in your area.
Dual Occupancy SubdivisionWhat we’re looking at is doing a dual occupancy development and a subdivision. It’s called the dual occupancy subdivision. What it does is allows you to depart from the minimum lot size. Some people can’t do a straight one into two lot subdivision. The only way they can pull it off is a dual occupancy subdivision. The reason why they do that is council often says,
‘Well if the site has already got two dwellings on it and we can see that they’re built properly. There’s enough privacy, private open space, and landscaped area. I can see how car parking is going to work. You know what I’m going to give you a concession on the minimum lot size. I’m going to go a little bit shorter because you’ve already shown how you can demonstrate the smaller lot size can support the development by building these two dwellings.’
Take the Next StepI have built quite a number of these myself personally and we’ve done thousands for clients. If you’d like to learn more about this strategy, I highly recommend Your Ultimate Guide to Council Approval, which you can download from our website.
If you are serious about moving forward with your property dreams I recommend you book in for a consultation, which is complimentary with one of our council approval consults at councilapproval.com.au.
My name is Colin Fragar from Council Approval Group. Thanks for watching. I hope you found this helpful.