15 Jan 2022

What Is the Difference Between Dual Occupancy and Secondary Dwelling?

The bulk of homes on the Australian housing market is single-family homes. However, others exist including second dwellings and dual occupancy. Dual occupancy homes started in Melbourne in the early 1980s. The goal became to optimise the land divisions, infrastructure, and public services by diving land.

Thus, Melbourne ended up with properties that have two occupancy units on one land division and one title. 

Second dwellings are not separate homes with separate addresses. Instead, they act as an extension of the current home. It’s not common in Australia but maid’s quarters are considered a second dwelling, not a dual occupancy unit. The same goes for granny flats or a garage. Each of these is an extension of the principal home, not its property unit.

It sounds self-explanatory. However, for financial, tax, and legal purposes, it matters how each element of a property is labeled. For example, some owner-occupiers purchase a dual occupancy property. They live in one unit and they rent the other one. When the situation falls in their favor, they can repay both units with the income from the other dwelling. 

Mortgage House finances the purchase of several property types. Those interested in a second dwelling or dual occupancy property can obtain a loan to cover the costs. 

Second Dwelling Real Estate Conclusion

When purchasing a property as an investor or owner-occupier, it’s important to distinguish the property type. A second dwelling differs from a dual occupancy property. To finance either of these, contact Mortgage House. Our loan specialists have the tools to evaluate each and offer competitive loan terms.

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