Dual Keys and Duplexes in QLD

Hi guys,

Just wondering if anyone here has built a dual key or a duplex in either the Logan or Ipswich region? If so, I was wondering:
1) How did you go with getting it valued? I've heard it could be an issue to get them valued to where they should be.
2) What rental did you get?
3) If you sold it, what did you sell it for?
4) Can you share what it cost to build?

Just trying to figure out what to do with a couple of my properties. We're trying for a duplex, but if we can't get it approved then I'll probably look at dual keys if I can get some more confidence around them...

Cheers

 

Hi JMillar,

I have experience with Dual keys.
1) Valuations tend to be ok as long as you have bought the land at the right price. If there are recent comparable land sales below the value of your block, the valuers will jump all over them. My number one tip is make sure you're getting the land at the right price, otherwise it's going to be tough to finance.
2) Ipswich = 7.0-7.5%, South Brisbane = 7.2-8% yields after you have taken into account the build cost and land price. (normally the fixed turn key price is the amount you can use to back calculate the yield/rent)
3) Not many of these are ever sold as a completed package. Dual keys are still a relatively new product and you could imagine there would be little motivation to sell a fully tenanted new dual key with a great yield. Many investors tend to sell down other lower yielding assets to pay dual keys off and hold them into retirement.
4) 3+2 bedroom full brick dual keys are built for around $260,000-$270,000 (large design)
3+1 bedroom full brick dual keys are built for around $245,000-$250,000
Be careful as many builders will try cut costs by having lower ceilings, smaller floor spaces, non-brick construction, etc..

Scott O'Neill

 

Seem like reasonable build costs.

Do dual key homes need specific council approval to be built? Or are they classified as a single dwelling.

 

Although if you can achieve a similar end-result with lower-cost materials, that is not a bad thing. The important thing is appeal for tenants. Agree that higher-ceilings and a spacious product is important.

One thing to be wary of with full brick is that it can be a thermal mass that takes a long time to cool down. Good design for through and cross ventilation is also important although difficult to achieve in a side-by-side product.

 

How much should I be paying for land in the south bris or ipswich region big enough for a spacious dual occ?

 

Hey PCer's,

Regarding the Duel Key or Duplex option I have a nice parcel of land that will be hitting the market this week at 73 Lynelle St, Marsden which has been made in effect to best suit duel occupancy. Its a 532m2 corner block in the emerging suburb of Marsden, Logan. I have D.A plans for a Duel Key or a Duplex with the well regarded builders who specialize in Duel occ homes "Aushomes". Unfortunately my circumstances have changed due to my wife's employment so I'm unable to proceed with the build as the plan was to. I have done extensive works with Council and the Builder, so this creates a wonderful opportunity for those looking for this option. There are hardly any blocks of land in its surrounds that can suit a build of this kind. Private message me for details. Happy to email or speak on the phone with more details.
*I am not a agent or a marketer and only a private property investor. No middle men to inflate price's which you will see with this product.

Cheers, YoungBull

 

Thanks mate - what would be the minimum height ceiling you'd suggest going with? Also is there a guide on what size rooms you want etc? Would you suggest staying with a full brick construction only?

Thanks a lot.

 

Hi All,

I am new in this forum and just wondering if anyone here has built a dual key or duplex in Wynnum/ Manly/ Lota? I am really desperate to find out the total cost (build cost with all necessary approvals / permit cost) to build such property, so I can work out whether it fits into my budget before I get the land. The total floor area is around 120m2.
Does the cost vary in different suburb (let say Wynnum vs Holland Park)?

Thank you, everyone.

Cheers

 

You're going to need to speak with a builder - based on what's selling best in that suburb your build spec will change and subsequently your costs.
Consider speaking with a builder who has a standard Dual Occupancy drawing, a quick google reveals a couple in Brisbane, they will be able to give you a rough idea.
In terms of your permits etc this will depend on the block, its access to infrastructure, topography, overlays etc. It's a bit of a case by case basis. If you find somewhere that has Dual Oc's already, it gives you a little confidence knowing that others have succeeded previously.
Hope this helps as a rough starting point,
R

 

Does BCC allow dual keys?

 

Short answer is no - not in the format that this question is intended.

House and granny flat within the same building is as close to this as you will achieve. Combined they are to be utilised by a single 'household'.

A household can be (by definition):

• one person maintaining a household
• two or more people related by blood, marriage or adoption
• up to five children under the age of 18 not related and one or two adults who have care of them
• no more than five unrelated people.

If you want to read up on this, google search BCC Granny Flat - there is a fact sheet BCC has published.

 

The question should be
“Does BCC allow dual keys to be rented separately?”

The answer to that is “no”.

 

Thought so, just the response to the question above made it sound like it's possible.

 

The confusion exists because there are two separate issues, which many roll into one question.

You can legally build a granny flat in Brisbane, and can also probably build a dual key property subject to any conditions. These can be legally occupied by members of the same household/family, I.e., related.

What you CANNOT do, is to rent them individually, on two separate leases.

 

Correct - almost -
As per my comment, they must be occupied by a single 'household' which is defined above.
The persons do not necessarily have to be related.

 

What about granny flats included in sharehousing, let's say you've converted your house into a small boarding house with 2 or 3 rooms, plus a grannyflat, so you have 3 or 4 separate leases?

 

Seperate leases will get you in trouble if Council finds out. Also, if something happens to your property such as a fire for example, insurance will wipe their hands clean and you lose the lot - completely speculative of course.

You're operating a form of Rooming Accommodation - Google 'Rooming Accommodation BCC' and you will find a link to Councils website that gives you all of the information required

 

Sorry i mean all legal options ovcourse, so for a boarding house. I can't find any specific mention to granny flats specifically, only that rooming/boarding houses are different to multiple dwellings and self contained units, so I guess normally as a granny flat would normally be self contained, it cannot be included in the rooming, but I've read about 'new gen boarding houses' which have self contained units - would these fall under a multiple dwelling.

 

You're going to have to give me an example so I can look it up.
Multiple Dwelling Units are townhouses/residential apartments. Self contained yes, but typically not permitted in the same zone as your house and granny flat is likely built.

 

I have a 4 bed*3bath house, ( 1 bed is under the house and it is spacious, almost like a small studio, with a bathroom down there as well) + a detached granny flat with its own bathroom and kitchenette, I'm looking for what options are possible out of these-


1-- Ideally I'd like to create 4 self contained units, 2 in my main house, each with their own ensuite, kitchenette, and small lounge/dining area, with 2 separate entrances,(main entrance and old laundry entrance) and add a kitchenette downstairs, granny flat is already good to go, so 4 separate general tenancy leases.

2-- Or create 3 rooms with ensuites with shared kitchen/lounge/laundry so 2 in main house and 1 downstairs, but Im unsure how the self contained granny flat would work in with this scenario.

In either case I do not plan to make any external modifications to the house, only internal with wall changes etc. Really unsure on the zoning and what can be done, I've been having a look at material change of use