Posted July 10 in Dual Occupancy

Knockdown Rebuild or Dual Occupancy: which is right for you?

You have the perfect piece of land in a sought-after suburb but the old or out-of-date home that sits on it needs to go. The question is: do you knockdown and rebuild to create your dream home? Or do you look to a dual occupancy project to maximise the value of the land?

Whether you’re an owner-occupier or a first-time investor, we’ve balanced the key differences between a knockdown rebuild and dual occupancy so you can determine the right option for you.

 

What’s the difference between a knockdown rebuild and a dual occupancy build?

In simple terms, a knockdown rebuild involves knocking down the original home and building a new and improved single-dwelling home in its place.

A dual occupancy build, on the other hand, involves building not one but two homes on a vacant block of land, essentially maximising the value of that single block of land.

Why you should consider dual occupancy

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Things to consider with a dual occupancy build

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Why you should consider a knockdown rebuild

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Things to consider with a knockdown rebuild

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Why you should consider dual occupancy

With a dual occupancy build you can double the potential benefits when compared to building just one home – if you do it right.

‘Building two homes on one block of land maximises its value – particularly important if your lot is in a suburb where prices are strong and rentals are hard to come by,’ says Boutique Developments Consultant, Andrew Nixon.

Ideal candidates include owner-occupiers, downsizes and investors, with dual occupancy offering the potential to double rental yields by renting out both homes. Dual occupancy may also provide greater rental acquisition and retention.

‘Some people choose to fit out their dual occupancy build with different fixtures, fittings and interior design styles, so as to appeal to different rental markets in the area,’ explains Andrew.

Customers who would like to live in the home but who are working to a tighter budget can also benefit from a dual occupancy as it allows them to split the cost of land and rates with family or friends. Alternatively, they could reside in one home and rent or sell the other.

‘About 75 per cent of our clients are owner-occupiers who realise the savings and convenience associated with dual occupancy duplex or townhouse builds. This includes parents who split the cost of the block with their children to make the purchase more affordable, siblings who want to be neighbours, and multi-generational families who want to have their elderly parents nearby while still giving them their own space and independence,’ says Andrew.

‘The great thing is that you can still set up your individual home interiors exactly how you want them – you don’t need the same style as mum and dad!’

Things to consider with a dual occupancy build

It’s important to consider that double the dwellings can also mean double the complications with an inexperienced builder.

It can take anywhere from 18 to 24 months to complete your dual occupancy project, depending on council restrictions; something those working to a tight build deadline should consider.

Read more: We’ve pulled together a step-by-step guide to a Dual Occupancy build.

‘Dual occupancy builds come with their own set of restrictions, so it’s really important that your builder specialises in and understands the residential codes and council restrictions of your area, to avoid significant delays,’ says Andrew.

‘For example, some councils will take issue with densifying the area with additional houses, how well the façade matches the neighbourhood character, or having two driveways on one lot. These are all things your builder needs to consider and make allowances for before they submit applications to council that will only be rejected.’

Block conditions such as fall, size and orientation will also determine if a dual occupancy build is even possible on your block. Boutique Developments customers get access to an obligation-free site assessment so you are aware of any potential complications or expenses before you put a deposit down.

‘Investors should also make sure that the rental yields of their area are high enough to warrant a dual occupancy build,’ says Andrew. Similarly, think through the size of the homes and level of internal finishes needed to maximise the land value and rental profits. ‘You don’t want to over capitalise to a point where the build is no longer worth it. Luckily, Boutique Development’s premium standard inclusions are such high quality, investors rarely need to upgrade,’ adds Andrew.

Why you should consider a knockdown rebuild

The advantages of any knockdown rebuild project are endless, especially if you compare the pricing and convenience of a new build to buying established or undertaking major renovations.

A knockdown rebuild project allows you to build a brand-new home in the suburb you know and love. You can also look forward to all the latest materials and technologies, a fresh build warranty and low maintenance costs after handover.

‘Our knockdown rebuild clients tend to be families who are emotionally invested and on a mission to build their forever home that’s close to work, family and school. It’s also a great way to maximise the value of their block, particularly in areas where land is highly sought-after,’ explains Knockdown Rebuild Specialist, David Kelada.

Larger families who need plenty of space will usually opt for a knockdown rebuild rather than a dual occupancy, as will those with a narrower block size that may not fit two dwellings on the lot. Knockdown rebuilds with a single dwelling also tend to be quicker than a dual occupancy, with the whole process taking approximately 18 months from start to finish.

Read more: We’ve pulled together a step-by-step guide to a Knockdown Rebuild.

‘We have an array of plans to suit every family, and we can work with you to make personalised adjustments to facilitate how you will use the space – from custom breakfast bars or servery windows, butler’s pantries or room locations,’ says David.

‘Knockdown rebuilds can also be a more affordable option. At Boutique Homes, we take pride in the fact our knockdown rebuild pricing is upfront and transparent. Plus, you’ll dodge stamp duty, mortgage set up costs and other fees when compared to buying established.’

Things to consider with a knockdown rebuild

Again, it pays to go with a knockdown rebuild specialist if you want to avoid costly budget blowouts or delays.

‘Elements as simple as protected trees or complex planning permissions can push your build back by months. Make sure your builder understands the complexities of knockdown rebuilds and the specific codes of your area before you sign on the dotted line,’ says David.

‘This also goes for your house plan. There’s no point finding the perfect floorplan that fits perfectly on your block, if the plans are never going to be approved by council. A quality Site Assessor will be able to spot this early to avoid any additional costs, delays or disappointments.’

Be aware that some builders will initially underestimate the costs of a knockdown rebuild project in order to secure a sale. If you can, find a builder who keeps build services in-house, to reduce the risk of cost blowouts during the tender process.

‘At Boutique Homes, all knockdown rebuild custom joinery, electrical, and heating/cooling is done in-house. This is not only convenient and allows you to personalise your home in a unique way, it also helps to keep costs and timeframes within estimates,’ explains David.

With many knockdown rebuilds being a forever home, it pays to save for the premium upgrades you have always dreamed of – from an expansive butler’s pantry or a second bathroom to skylights or bi-fold doors.

‘Check with your builder to ensure they offer high quality inclusions – including ceiling sizes and premium suppliers – so that you can spend your hard-earned cash on the superior features you really want,’ adds David.

Should I knockdown and rebuild, or is dual occupancy right for me?

Speak to one of our specialist team today.

 

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Want to find out which type of build is for you? Speak to one of our Specialist team today who can point you in the right direction.

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