Unlocking the Potential of Dual Occupancies in NSW

Unlocking the Potential of Dual Occupancies in NSW

Dual occupancies are becoming increasingly popular across New South Wales (NSW) as homeowners, investors, and developers recognise their potential to maximise property value and create additional income streams. But what exactly is a dual occupancy, and how can you navigate the complexities of planning regulations to make the most of this opportunity?

What Is a Dual Occupancy?

In simple terms, a dual occupancy is the construction of two dwellings on a single lot. These dwellings can either be:

  • Attached: Two homes sharing a common wall, often resembling a duplex.

  • Detached: Two separate homes on the same property.

Both options offer unique advantages depending on the property’s location, zoning, and intended use.

Why Are Dual Occupancies Popular in NSW?

Dual occupancies are an attractive solution for many reasons:

  1. Increased Rental Income: Create an additional dwelling to rent out and generate passive income.

  2. Take a Chunk Off Your Mortgage: Building a Duplex in NSW means you will have two titles at the end of construction. Developers benefit from massively reducing their mortgages from successful projects by simply living in one house and selling the other. 

  3. Maximised Land Use: Particularly in urban areas, dual occupancies help address housing shortages while utilising land efficiently. Investors/developers are usually rewarded financially for providing such housing through profit. 

Planning Regulations for Dual Occupancies in NSW

Navigating dual occupancy regulations in NSW can be challenging due to variations across local government areas (LGAs). Here are key factors to consider:

  1. Zoning Requirements Dual occupancies are typically permissible in residential zones (e.g., R1, R2, or RU5), but the exact zoning and conditions vary. Always check the Local Environmental Plan (LEP) for your area to confirm permissibility.

  2. Minimum Lot Sizes Councils often specify minimum lot sizes for dual occupancies. For example, some LGAs may require at least 800m², while others might allow smaller lots under certain conditions.

  3. Development Approval (DA) vs. Complying Development Certificate (CDC) Depending on your property and proposed design, you may need to apply for a DA through your council or meet the requirements for a CDC, which streamlines the approval process under the Codes SEPP.

  4. Design and Access Considerations Councils also assess factors like parking, setbacks, and private open space to ensure the development aligns with local character and planning guidelines.

How to Get Started

Successfully pursuing a dual occupancy requires careful planning and expert advice. Here’s how you can begin:

  1. Assess Your Potential Use a service such as RealPlan's Duplex Core or Duplex Plus to determine if your property meets the zoning, size, and access requirements for dual occupancy.

  2. Understand the Costs Dual occupancy projects involve design, construction, and approval costs. Create a clear budget to ensure your project is financially viable.

  3. Work With Experts Collaborate with architects, builders, and town planning professionals to navigate the approval process and create a design that meets council regulations. Make sure you always check easements, restrictions on title and plan on some things going wrong! Having a good team around you will make the journey much easier. 

  4. Explore Financing Options Speak to financial advisors about leveraging your equity or securing a construction loan to fund your dual occupancy project.

Common Challenges and How to Overcome Them

While dual occupancies offer significant rewards, challenges can arise, such as:

  • Complex Approval Processes: Different councils have varying requirements, so work with professional services like RealPlan to navigate complex rules.

  • Community Objections: Engage neighbours early in the process to address potential concerns.

  • Cost Overruns: Stick to a detailed budget and timeline to avoid unexpected expenses.

Final Thoughts

Dual occupancies represent a smart investment for homeowners and developers in NSW, offering flexibility, financial benefits, and enhanced property value. By understanding local regulations and seeking expert guidance early, you can unlock your property’s full potential and contribute to the state’s growing need for affordable, high-quality housing.

Ready to explore the possibilities of a dual occupancy on your site? Subscribe to Duplex Plus today to start checking the approvability of your site.

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