Hi Bessie,

I am also a new forum member and was only interested in replying (first time) as I also have an investment property in Hervey Bay Qld. Difference is I build a duplex on a vacant block of land to maximise the rental return.

You can consider the property “Dual occupancy” as I own the whole property with multiple residences.
The added value in this a) higher income b)land rates stay reasonably the same as it is still only one(1) property c) minimise landscaping which requires maintenance or ongoing care. Detracting feature is you, the owner, must cover the costs of construction of a new house and any borrowing cost(interest) until the property is rented. In your case you may also lose the existing tenant during construction.

Dual Occupancy, in my case, was to maximise income to best cover holding costs over a longer time period inorder to (hopefully) realise future capital gain.

Whether you build 1, 2 or more residences on the one title the construction is not a transaction which triggers “Capital Gains” assessment and hence an expense to be paid in the short term.

Subdivision is when you divide the land into small parcels which it is hoped are individually more valuable than the original “whole” land. Sell off the surplus and pocket some money to boot.

This transaction does trigger “capital Gains” assessment and you would be mindful to take independent legal & financial advice as to the ramifications.

In both cases you hope to achieve the desired result “money for other purposes” only after paying for ALL COSTS.