Investment properties in Australia are a hot commodity; not only can you increase your real estate investment portfolio, you can also use your investment property to garner additional income for your family. One of the ways to accumulate an investment property is to buy or build a duplex or other dual-occupancy property. A dual-occupancy residence can be detached or semi-attached, such as an apartment over the garage or a separate building on a piece of property. When building a duplex, tips and advice from those who have been in your situation prove an immense help to you before and after you begin the process of construction.

Know the law

Building a duplex, or granny flat, requires knowing a bit about real estate law. You cannot build any structure without the proper permits and you should never build any structure for investment purposes without first checking with an accountant regarding the tax you are required to pay upon sale of the duplex or on the money you earn as rent from the duplex.

Meet all council building requirements

In addition, your duplex must meet all structural, height, floor space and other relevant and required restrictions before it can be built. This requires making a blueprint of the structure and including all relevant details of the building. You can, however, add on to an existing structure to turn it into a duplex or build an entirely new structure on empty land.

What will you use the duplex for?

Before you begin construction on your duplex, there are a number of other factors you need to keep in mind. The first is what you plan on using the duplex for. Many people commonly take advantage of these granny flats as a way to care for elderly family members.

The addition of a granny flat, or duplex, gives you the space and privacy you desire as well as the proximity required to take care of your elderly parent or grandparent. Others use their granny flats as an apartment for recent graduates looking to move away from home for a little more privacy; since many graduates cannot afford a place of their own until school is over and jobs are secured, parents are letting their kids stay in their duplex while they go to school. The situation is a win-win for both parents and their adult children.

Your other option is to rent out the duplex to someone outside of your family. This method of investment generates income for you by renting the granny flat to someone with a contract requiring them to pay a set amount of rent each month. (more…)