A Dual Occupancy/Auxiliary dwelling is the correct term for this type of property. They are also known as dual-key, dual dwelling, and various other names. They are two homes in one. They are generally not approved to be strata titled like Duplexes, which means that both dwellings or units are on a single title with one set of rates; thus, there are no body corporate fees.
If Town-Planning rules were to change in the future and these dwellings were permitted on smaller block sizes, there wouldn't be any building changes needed to allow the two units to be strata titled, providing that the land complied with the new minimum block size at that time.
Both self-contained units are generally under the same roof, so from the street, the dwelling looks like a typical house. If they are attached and under the same roof, the units are separated by a firewall, providing great acoustic benefits.
Each unit can be constructed as detached structures (depending on the LGA); however, this generally only occurs on larger blocks of land or where a property with an existing dwelling needs adding an auxiliary unit. Modular buildings can be ideal for this situation and can be built on difficult, tight access or sloping sites.
Generally, a Dual Occupancy/Auxiliary dwelling has two, three, or four bedrooms on one part (the 'main dwelling'), which can be any layout and size, and 1 or 2 bedrooms dwelling on the other side (the 'auxiliary unit'). Both units have their entrance and full amenities, including a kitchen, bathroom, bedrooms, laundry, living area/s, and car accommodation.
The size and layout of the auxiliary unit vary from Council to Council in Queensland. Different rules will also apply in other states. As an example, NSW has overarching State legislation allowing dual occupancy/auxiliary dwellings in all Local Government Areas; however, each LGA can have its variations to the rules. Dual occupancy/ auxiliary homes can't currently be built in Victoria, but they are allowed in WA, with the other states varying.
In most cases only a single crossover (driveway egress) is allowed, so the garages for both units are usually side-by-side using a shared driveway. Some LGAs have rules about the minimum number of vehicles that have to be parked off the street.
Benefits to Owner Occupiers:
• Multi-generational living
• Appears like a single home from the street with attractive facades available.
• Privacy and independence from other household members
• You Can choose to rent out separately in the future if you wish.
• Resell to owner occupiers or investors
Benefits to Investors:
• Cash Flow Positive
• High Tax Depreciation
• Two rental incomes – Providing a much higher yield than a single dwelling
• Only one rate or a reduced amount of rates charged
• One income will continue if the other tenant vacates
• They have separate water and power metering
• No Body Corporate fees.
• Completely independent and separately fenced units
• Some plans can be designed to be converted into single dwellings later if required
• Can be resold to owner-occupier or investors
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