There are many benefits to subdividing and even more ways to go about the process. Some ways include:
- Leaving the original dwelling and selling or building an additional dwelling on the vacant land on the property (often a large backyard).
- Knockdown rebuild of an older home on a large block of land and replacing with
- A duplex (two regularly sized homes that share a common wall, either side by side or one on top of the other, with separate entrances into the home and occupying the entire floor of each building)
- Two homes, often repositioned on the property closer together and to boundary lines. On a standard traditional block of land (1/4 acre), it is common to build double storey homes together in place of the original dwelling to maximise the size of the new home(s).
- Dual occupy homes which are 2 homes under the same roof. Usually this consists of a larger home with a smaller apartment-sized space within the dwelling, usually sharing the same entrance point. For investment purposes, one of the homes can be rented out as a permanent home or ‘AirBnB’.
This strategy is often very advantageous for investing as the return on investment, especially for dual occupied dwellings, can most likely have you seeing great returns.
Building two homes on the one block can often see the following advantages:
- As many townhouses, terraces, duplexes etcetera are cheaper and less maintenance than a traditional family home, they are often in high demand for working professionals but will still give a great return on investment when building multiple.
- Knockdown rebuilds allow brand new homes to be built in already well-established neighbourhoods which can be very sought after.
- Subdividing a block in a great suburb can often provide an instant increase in equity.
- If one or both homes are rented then the tax depreciation allowance claimable for new builds can result in a lucrative return on investment, especially if it is in a key location.
Get in contact today and start your investment journey with Rivergum Homes.