We are looking at purchasing an investment property that comprises 2 houses (1 x 2 bed & 1 x 3 Bed) under the one roof but is not registered as dual occupancy. We would intend to rent out each house seperately. Is this likely to be a problem??
NatashaCould be a problem if no building or planning permit was ever issued for 2 dwellings.If the proerties are broken up on the rates notice such as unit 20a and 20b find out from the council rates dept when the property was split into two properties. If it was a long long time ago you probably have less to worry about.
“Dual Occupancy” is Town Planners’ speak. It means two dwellings on one parcel of land. (Reference Albury Local Environmental Plan 2000) I am sure there are many similar meanings in other planning documents. To me it does not matter if under the same roof. However, I would recommend ensuring the roof space is properly divided so that inappropriate access from one dwelling can not be gained across the roof cavity to the other dwelling. Also good for fire separation if they get strata titled in the future. You may have diffulculties with insurance coverage. I highly recommend same PM for both.
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Hi Natasha,
Check potential yields on this set-up. Sometimes the vendor has a slightly higher price on this arrangement. Tenants could possibly shy away from this (potential privacy issues, fighting tenants etc) and the only way to attract them is to lower the rent! Worst case you might have a situation where the yield equals a standard house in the area, so why bother………..let your calculator decide this one!
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