ACT dual occupancy home

Discussion in 'Where to Buy' started by David Zhou, 3rd Jul, 2017.

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  1. David Zhou

    David Zhou New Member

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    Hi guys, I saw a dual occupancy house on realestate.com.au. Not too sure what is it, the agent told me "Dual occupant means that two properties share the one town block, with reduced rates and land tax levies and no body corporate, saving you a lot of money from an investment point of view. "

    Is that correct? anything bad taht I need to be aware of dual occpancy house?
     
  2. MichaelMik

    MichaelMik Well-Known Member

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    Because they're on the same title, you can only sell them as a duo, you can not sell them individually. Might be good if its a long term thing, with a higher yield perhaps then the house next door. If however you do want to sell them, it may be a slightly more niche market for them. So you'll have to bide your time waiting for the right buyer who wants two houses.

    Whereabouts in Canberra, if you don't mind me being so bold?
     
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  3. MichaelMik

    MichaelMik Well-Known Member

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    Oh by the way! Most folk from the Bez, use allhomes.com.au

    That's the local site, excellent for past sales data. Not sure if there may be more properties or not. But I don't think everyone advertises on both. ;)
     
  4. S1mon

    S1mon Well-Known Member

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    I dont think there is anything to worry about. If i recall correctly, blocks in standard residential zoning (rz1) over 800 can have dual occy, a good option to get the double income given you cant subdivide.

    And as above a smaller market when you want to sell but that wouldnt worry me.

    Lower land tax / rates is a bonus. I assume they have separate elec/gas but not water?
     
    Last edited: 3rd Jul, 2017
  5. S1mon

    S1mon Well-Known Member

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    Hopefully one day they all separate titles for such blocks... Aka the my fluffy blocks in rz1 over 700 sqm can be separate titled... I did submit feedback of part of this change (variation 343) saying they need to apply same rule to all. Sux gov can change the rules just for their blocks because they want more $
     
  6. David Zhou

    David Zhou New Member

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    Thanks MichaelMik. The house is in Ngunnawal. I am still trying to get my head around this. From what you said the two houses in the same title have to sell together, but I don't see the next door is selling, so how come the current owner can sell this one?

    Does dual occupancy house usually sell at discount?

    Thanks


     
  7. hash_investor

    hash_investor Well-Known Member

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    Because both houses are owned by one owner, what is meant by "one title".

    Think about a duplex arrangement. I am sure you have seen a few they are usually identical just built in the opposite direction with one common wall in between. The diff between a dual occ and a duplex is that each side of a duplex can have its own title. Each side of a dual occ cannot have its own title.
     
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    It just means there's two houses on one block of land.

    You can't sell the houses separately. You have to sell them together.

    Cons - it reduces your pool of future potential buyers.

    Pros - you could earn extra income from the second house. If they change zoning in the future and you're able to sub-divide (so have two houses and two blocks of land) then you could make a decent profit BUT I wouldn't bank on zoning changes.

    Cheers

    Jamie
     
  9. David Zhou

    David Zhou New Member

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    Thanks everyone for the help! :)

    I have called the agent today ask him why there is only one house is for selling, the other one is not on market. He told me both houses are separately titled and metered, that's why it can sell separately. I guess that's good thing right? I am just not sure why they still call it dual occupancy if they are separately titled.

    Cheers
     
  10. doqaut

    doqaut New Member

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    Michael and Jamie posted that with a dual occupancy, you can only sell the dwellings as a duo, you can not sell them individually; that you can't sell them separately and you have to sell them together. That may be the case in some other places, but in Canberra, these houses are regularly sold individually. Houses in dual occupancies have what is known as "Class B" unit title under the ACT Unit Titles Act 2001.