What are the overall Dual Occupancy ("Du-Oc") rules in Perth, Western Australia?

The overall summary of rules are -

• An Ancillary Dwelling must be associated with a single house and on the same lot.

• The lot must not be less than 450m2

• The maximum size of the additional accommodation must not exceed 70m2

• Parking provision needs to be allowed for

There are exceptions for -

• Site area coverage

• Street Surveillance

• Outdoor living areas requirements

Do I have to have a shared laundry or common door between the two dwellings to own a Du-Oc Home?

No, there is no requirement. The secondary dwelling can be completely independent or shared. In some cases, such as student accommodation we would have both living areas connected.

Don’t the West Australian Rules stipulate I can only rent a "granny Flat" to Family members?

Previously, Yes, this was the case, hence the term "Granny Flat" being "family only".

Currently, the "Ancillary Accommodation" rules as per the WA State R-Codes do not stipulate this requirement now. A secondary room with accommodation classed and approved by the Local Council as an "Ancillary Accommodation" can be tenanted to any member of the public.

Can I consider dual occupancy plans and home designs from Victoria, NSW or QLD?

No - please be very careful here, we have studied the rules in the Eastern States and they are unfortunately very different to the W.A rules. There designs are generally what we would call strata designs which could work fine on some W.A strata duplex developments. Eastern states lots have a different approval process and design guidelines to W.A housing.

How big a block do I have to have to Build a typical Du-Oc or Granny flat style home?

Currently the minimum lot size is stipulated as 450m2 in Western Australia. The block can be Green title or strata. (* note each council unfortunately has different assessments, planning policies and rule interpretation. We strongly suggest before you purchase any block of land in Perth, call us so we can thoroughly  check with the relevant Council Departments).

How big can a granny flat or Du-Oc accommodation be?

As above the maximum internal size is 70m2. This area does not include a garage, carport or alfresco area.

What other Du-Oc Government and Council Rules should I be aware of?

Council's assess our properties under the "Ancillary Accommodation" ruling within the State R-codes (Click Here). There are over 80 pages of R-Code design rules, plus some Councils now have their own unique Planning Policies (example attached). Land estate covenants and guidelines also must be checked. In some instances we will need to email an example concept design for consideration by the Estate Project Manager. 

We highly recommend using an experienced specialist Building Consultancy like our-selves! We are members of the "State R-Codes forum" to help us stay up to date on the latest regulations. At least once a month our team receive a call from a client using a regular builder that is having council issues. We cannot stress the importance of our network, our knowledge and experience.

8 steps to a successful Dual Occupancy strategy in Western Australia?

1. Pre-approval of Finance - Dual occupancy Finance is looked at differently to standard residential home loans. We recommended our specialist Financier "TICK FINANCE" who have the experience and knowledge. Its important before considering any areas, suburbs or housing designs that you have pre-approved finance in place.

2. Decide what type of development you want to achieve. Are you aiming for the highest Cash Flow. Are you aiming to live in one side and rent the other side out. Do you want to expand the home up in the future were by we develop a house plan with minimal wet areas internally and ensure diving walls are non structural. This allows some of our Dual living homes to be a four and five bedroom with 3 bathrooms plus a games room all designed with the intention of being a large family home for the future.

3. Check for any local planning policy that is additional to the WA state policies. Check with land developers and Estates as to any Covenant's that could affect min areas, Street frontage facades etc. Be aware of new planning policies that councils are considering. Is local zoning going to change one day...If local Zoning is on the cards for change, could I design a dual occupancy residence that could be strata titled into two separate titles in the future!

4. Understand the area you want to Invest into. Look at the median house price and average rents. Talk to experienced rental managers. Show them house designs and plans of what you anticipate on Building. How many rentals are in the local areas. Could you build a Du-Oc investment and undercut the average rent (cheaper rentals always seem to be the most popular with longer tenancies).

5. Dont just think large lot estates, could I create a dual occupancy home in an inner Perth Suburb. Could I afford a better area as I am generating additional rent to a standard property investment. Could I consider a house behind house scenario where I could realign boundaries to suite. Would building a double story at the front allow me to create the 450m2 at the rear to allow a three tenanted development where everyone else in the street can only create a standard duplex.

6. Know the true costs of the land. Is the land in a clay area!, is there additional drainage or engineering requirements. What are my average site costs for the area going to be! Is it worth paying extra for a clean "Class A" site with minimal site costs than paying less for a Clay or water logged site. Is there acoustic or bush fire rules you need to abide by (these can costs $10k to $30K extra). How far away are my services (sewer, gas, electricity, water). We can offer a free cost feasibility on your proposed site which you can use in purchase negotiation. (Refer example Feasibility)

7. Run our Own feasibility on the numbers. Or, use our Property calculator. Does this look and feel right to you. Have your accountant check the numbers.

8. Secure your Block and start a final Concept Design of the proposed dwelling. We recommend where possible ask for a long settlement as this delays payment of the lot. The builders plans and approvals will take at least 4.5 to 6.5 months to be ready to start, so a 6 month settlement with the approval & signature from the current owner gains the ability to lodge planning forms before you physically own the land.

9. Start the construction Process - refer Construction Time Frame and Process

Am I dealing builder direct? 

Yes, all our Sales Team are registered Building Consultants. There is no additional fees or costs to use our services.

Why Australian Property?

We believe that investing in property in Australia is a smart and sure way for you to reach your financial goals. Over the last three decades (1980-2010), Australian house prices have recorded peak periods of extreme growth at an average annual rate of 8.4%. (Source: RP Property Data, Property Pulse)

Australia's sound financial systems and growing property market have proven that property is a solid investment.

Why new properties?

Choosing new property over old makes sense. When you build you employ thousands of people. You pay stamp duty only on the land component plus new properties deliver greater tax benefits due to better depreciation. "New" rents faster and typically yields a higher dollar value. You receive manufacturer warrantees plus State enforced & stipulated Builder guarantees on construction quality.

Why House & Land?

Over time, you need your investment to grow as much as possible. And over time, buildings lose value, while land is the component that appreciates.

Apartments offer "Air" ownership not land ownership, while most Units have shared driveways and strata agreements with multiple owners that need to be consulted prior to house improvements etc. Asked whether 10 years ago you'd buy an apartment in Cottesloe or a "House with Land"?

Are there any ongoing costs of Property Management?

Yes, as there are two tenants in each Du-Oc property there will be two individual charges for Rental/Property management. We recommend allowing 8% to 10% of the rental income to cover your costs. 

Our Property Investment Plan, will outline potential costs to you, making it as clear as possible what’s involved in your particular investment.

Are there additional Council or shire costs when owning a Dual Occupancy dwelling?

The costs are no different to owning a single dwelling except for the payment of a second bin. Rates, etc stay the same.

Can "Dual Income Plus" help me subdivide my block?

Yes, we regularly help our customers subdivide their lots. We can organise Survey Strata and Built Strata subdivisions. It is not uncommon (rules permitting) where we can have two dual occupancy properties side by side or one behind each other on an existing lot. This type of development hence then  enables "4" rents from one existing lot. Talk to our team about how you may be able to do this with your property!  

What if I cant Subdivide my block, can I still build a Du-Oc development? 

Yes, fortunately the main criteria is that each lot is no less than 450m2 in size. There is how-ever council approval required for many other items that we would run through when we get together.

Can you tell me, is my block is Subdivisable?

Yes, we have a vast amount of experience in subdividing lots specifically in the Perth Metro area(duplex, triplex, house behind house etc).  In some cases it is better to subdivide a lot into 3 or 4+ lots rather than one or two Dual Occupancy developments. Every area has different outcomes. We can run through the costs associated with both, so you can make the best educated decision.  

Can you build a freestanding studio or granny flat?

Yes, we have built them and can build them successfully. If the studio/granny flat were free-standing though, it would be at least $140,000 to $175,000* if built out of typical project builder construction methods including connection to gas, water, sewer, electricity.

Is it possible to create a granny flat for under $50,000 within the main dwelling.

As we have mentioned with in the website Yes, constructing within the main dwelling is the key to keeping prices down.

What about Insurance for a dual occupancy or granny flat dwelling? How does this work?

The Building and Land Lord insurance is based on the overall dwelling and noted as two tenancies. There is only one policy overall. We have direct experience with Insurers and there are specific companies we would recommend that (A) offer a great policy price and (B) pay out on claims.

Give us your feedback or ask a Question....

We’d love to hear from you. As we continue to grow we always want to improve our services to our valued customers. Contact one of our team members, or your personal consultant today and let us know how we helped you best and where we need to improve.