Everything You Need To Know About Buying Or Building Dual Income Investment Property in South East Queensland

Everything You Need To Know About Buying Or Building Dual Income Investment Property in South East Queensland

Todays article focuses on dual income investment property.

In particular it looks at where you can buy and build dual income investment property in South East Queensland.

As an investor I found it hard to find high quality dual occupancy properties in South East Queensland. I also found it hard sorting through all of the rules and regulations in each local government area.

Thats why I put together this article which looks at the rules surrounding Dual Key, Dual Occupancy, Duel Dwelling, Dual Living and Granny Flat opportunities in:

  • Brisbane
  • Ipswich
  • Sunshine Coast
  • Morton Bay
  • Redland
  • Gold Coast
  • Logan

Why buy a dual income investment property?

Dual income investment properties can provide investors with higher rental yields.

They also enable investors to their minimise risk through improved cash flow and can provide a buffer against property vacancy rates as a result of multiple tenancies and therefore income streams.

Looking to buy an investment property in the next 12 months? Learn more about how we can help you here…

What’s caused the sudden rise in the popularity of dual income property?

Dual income investment properties have existed in a variety of forms across Australia for the better part of the last century.

That said they have recently fallen into favour as investors move away from negatively geared property and towards positively geared property.

1. Government

Over the last 10 years local governments have looked to:

  • Provide residents with affordable housing options
  • Increase the density of residential areas
  • Increase rates

This activity has resulted in local councils seeking creative options and the birth of the modern day dual income investment property.

2. Market pressures

Over the past 5 years there has been a surge in demand for positively geared investment options as a result of changes to the way:

  • Australian banks lend money – changes to rules around serviceability and lending requirements
  • Australian investors buy property – changes from negatively geared portfolios to positively geared portfolios
  • The Australian property market cycles – changes from properties doubling every 7 – 10 years to properties increasing in value by 3 – 5% per annum

3. Affordability

Housing is now more expensive than any other time in Australia’s history.

This pressure has resulted in the creation of alternative, low cost housing options to service the growing number of Australian households who can no longer afford to buy property.

What’s the difference between a Dual Key, Dual Occupancy, Duel Dwelling, Dual Living, Granny Flat, Auxilary Unit, Family Accommodation or Secondary Dwelling?

Not a lot.

All of these terms simply refer to a secondary dwelling on a single piece of land that’s either detached from the existing property or under the existing roofline.

The real difference between these dwellings is in the changes from one council area to another. What may be perfectly acceptable at one address may not be at another. Some council’s love a dual income opportunity whilst others are not as open to the idea at this stage.

These days Granny Flats are being seen and promoted in a new light as an investment package often styled as “Dual Key” or “Dual Living” or “Dual Dwelling” or simply just “Granny Flats”. These are not necessarily to be confused with “Dual Occupancy”.

Where can I buy a dual income investment property in South East Queensland / Where can I build a dual income investment property in South East Queensland?

Brisbane City Council – Secondary Units

  • Secondary units can have a gross floor area (GFA) of no more than 70m2
  • Secondary Dwellings must be no further than 20m from the main dwelling
  • Secondary dwellings must be used by the same household group (family members) and can not be legally leased as an investment property

Please note:

  • Brisbane Council have been sending out show cause notices to secondary units that are rented on their own tenancy agreement
  • The new Planning Scheme increases the GFA up to 80m2 for secondary units

Ipswich City Council – Auxiliary Units

  • Auxiliary units can have a max GFA of 65m2 – This may under consideration to be reduced
  • Auxiliary units may be attached or detached
  • Auxiliary units must be consistent with the existing dwelling
  • The Ipswich Plan does not dictate that the auxiliary unit must be used by one household group – meaning you can legally rent it out as a second dwelling

Sunshine Coast Council – Secondary Dwellings

  • Be located on a site with a minimum area of 600m2
  • Secondary dwellings can have a max GFA of 90m2 in a Rural zone or rural residential zone
  • Secondary dwellings can have a max GFA of 60m2 in a all other zones
  • The dwelling house and the secondary dwelling must have a combined maximum site cover of 50%
  • At least 1 car parking space, in addition to the requirement for the dwelling house must be provided for the secondary dwelling

Moreton Bay Regional Council

Moreton Bay is currently serviced by 3 planning schemes – Caboolture, Redcliffe and Pine Rivers.

The Caboolture planning scheme dictates that secondary dwellings must:

  • Not have more than two bedrooms, lounge, toilets & showers
  • Have a GFA of less than 25% of the main dwelling or 85m2
  • Be located no more than 10m from the main dwelling unit
  • Not be occupied by more than two persons
  • Be used by a member of the household group

The Redcliffe planning scheme dictates that secondary dwellings must:

  • Not be used by person/s who are not part of the household group

The Pine Rivers planning scheme dictates that secondary dwellings must:

  • Not be used by person/s who are not part of the household group and must not be used for residential purposes

Redland City Council – Secondary Dwellings

  • Secondary dwellings can have a max GFA of 50m2
  • Secondary Dwellings must be no further than 20m from the main dwelling
  • Secondary dwellings must be used by the same household group (family members) and can not be legally leased as an investment property

Gold Coast City Council – Family Accommodation

  • Family accommodation can have a max GFA of up to 80m2 or less than 50% GFA of main dwelling – depending on zoning
  • Family accommodation must share; a driveway, water and sewer connection with the main dwelling
  • Family accommodation must be used by the same household group (family members or personal staff necessary for the health and wellbeing of a member of the main household) and can not be legally leased as an investment property  

Logan City Council 

Logan City Council is currently served by 3 planning schemes – Logan, Beaudesert and Gold Coast. That said a new town plan is in the process of being released as we speak.

The Logan planning scheme dictates that annexed units must:

  • Be located on a site with a minimum area of 600m2
  • Must be no further than 20m from the main dwelling
  • Can have a max GFA of 70m2
  • Not have their own laundry
  • Be used by one household group

The Beaudesert planning scheme allows a max GFA of 1000m2 and does not dictate the use by one household group.

See the Gold Coast City Council above.

 

The information contained in this article is for general information purposes only and should not be regarded as a substitute for professional legal, financial or real estate advice. The information is provided by Pumped On Property and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained in this article for any purpose. Because every persons needs and financial situations are different, the information in this article are intended as a guide only. Any reliance you place on such information is therefore strictly at your own risk.

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Ben Everingham

About

Ben founded Pumped On Property after building a multi-million dollar property portfolio over a 5 year period. His mission is to show you how to replace your income through property investing so you can do what you love…full time.

3 thoughts on “Everything You Need To Know About Buying Or Building Dual Income Investment Property in South East Queensland

  1. Hi, I thought the Sunshine Coast had a minimum of 800 m2 for dual occupancy unless you spend money for an application to see if you can get approval.

    1. Hi Mike,

      As far as I am aware your land needs to be 800m2+ if you want to build and strata title a Duplex.

      That said you can also build another type of dual occupancy dwelling, which is a normal house with a <60m2 attached, or detached secondary dwelling.

      To do this you need to find a piece of land >600m2. I have also seen sites in Caloundra South were Stocklands and the council are allowing you to do the above on a piece of land >450m2.

      Investors generally build a 3 or a 4 bedroom house with a 1 or 2 bedroom secondary dwelling and the yields are often over 6.5%.

      The trick is to make sure you understand exactly what you can do in the suburb you are targeting before you buy.

  2. Hi Ben,

    From what I can see in the Sunshine Coast Planning Scheme, a Dual Occupancy is not code compliant on a Rural Residential zoned Lot. I was thinking about adding a granny flat type building to my lot in Rural Res, but it doesn’t look like council would accept it.

    Where did you find that information about a Secondary Dwelling being allowed to have a max GFA of 90m2?

    Cheers,

    Nino

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