The big differences between a Duplex and a Dual Income property

It’s no secret that investments which generate multiple incomes are highly attractive. We've long known that duplexes are popular with investors, plus, dual income properties, or ‘dual keys’ as they are sometimes called are increasingly gaining market share.

While both offer a strong investment solution, a common misconception is that they are one in the same. Interestingly, this is not the case and both property types offer investors very different benefits.

Same same, but very different

Firstly, let’s look at the physical property type. A typical duplex is two individual properties constructed in a mirror fashion. For example, 3 bedrooms and 2 bathrooms in each property.

In contrast, Dual Income homes are two dwellings within the one property, usually a 4 bedroom one side and 2 bedroom on the other.

The other major difference is the land title – the duplex is strata-titled, giving investors the option to sell properties separately. Be sure to check the tax implications of selling, as they apply to your situation. Following a duplex build completion, investors have these appealing options:

• Hold both properties for ongoing positive cash flow, capital growth and tax benefits

• Sell one or both properties for an immediate profit 

By contrast, the dual income is under one land title. While the dwellings can be rented out separately, they can't be sold separately. There is however, only one set of council rates to pay for a dual home.

Key differences

*Including land and construction. Varies according to location.

Land size and build cost

Both the duplex and the dual are architecturally designed to maximise space and provide a comfortable living environment for both sets of tenants. Dual Income homes can be built on slightly smaller blocks of land. This delivers some significant cost advantages, such as a lower land price and reduced construction costs as duplexes are typically larger properties (8 bedrooms in total versus 6 in a dual) requiring more land and sometimes double storey construction which also increases cost.

More ways to generate a rental income

Upon completion, investors that have built a dual income - two different size properties and therefore enter in two different rental markets (one family and a couple for example). The occupancy make up is different.  With a duplex you need two lots of families that want to live in the same location at the same time.

Dual income properties are attractive for investors seeking strong returns, owner occupiers looking for a rental income, while also meeting the needs of multi-generational families who want flexible living solutions.

Location, location

Like any new build, there are council approvals required and each council has different local planning and zones. There are high growth areas in New South Wales and Queensland that support duplexes and dual income properties.

Packages currently available in Wollongong, South Western Sydney, Goulburn and Shoalhaven in New South Wales.  Our South East Queensland regions include: parts of the Sunshine Coast, Logan, and Ipswich.

Naturally all areas have strong capital growth predicted and strong supporting rental yields. According to RESIDEX Bellbird (in the Hunter) has 10% predicted growth annually over the next 5yrs.

A Dual Income property is not a duplex. It is on the same title of land just like a granny flat, only it is a purpose built integrated design to maximise the available space with only one set of council rates to pay.

Do the residents have privacy in a duplex and a dual?

Yes. Similar to living in a townhouse or villa, they share a common wall, but each residence has its own private entry and outdoor living area, its own bin and letter box as well.