It takes two Print E-mail
Wednesday, 26 October 2011

by Jade Harrison

In the market for a dual-living home? You’re not alone. The way we live is changing and the dual-living property is the way of the future. MPP investigates.

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Dual living. It’s a phrase that is commonplace in today’s property market, as more and more people embrace the idea of generating a passive income from their principal place of residence by renting out the humble granny flat to a uni student or third party.

However, the concept was pretty much unheard of up until the noughties – with only a few homes of the ’80s and ’90s featuring the dual-living capability more generically referred to as the ‘granny flat’. This living space – which was usually a one-bedroom, one-bathroom set-up with a kitchenette under the house – was actually for granny to live in, for free. But not these days.

For the past decade, savvy home owners have been looking at ways to help knock down their mortgage repayments by converting the garage into a flat, building in underneath the high-set home or by just whacking on a one-bedroom extension. Not only does the extra self-contained flat put money in your back pocket each week, it can also add value to your home when you go to sell it. In fact, there’s an increase in the number of homes that now have dual living – and clued-up buyers are certainly keeping their eyes peeled for them.

Local agent Steve Perry from RE/MAX has three listings that boast dual living, with a fourth listing in the process. He says during his 12-year real estate career there’s been a growing demand and inquiry for dual-living properties, especially from couples in their forties and fifties wanting to house their parents or from those wanting to derive an additional passive income.

“There are many properties marketed as ‘dual living’,” he says. “They vary from million-dollar homes that offer both families the very best, through to a humble home that has converted downstairs or a shed into a space that can cater for a parent, teenager or an opportunity to rent out for additional income. They really come in all shapes and sizes, some are council approved and some are not.”

Given the economic climate, there’s a push for the town plan to better accommodate dual living. Andrew Stevens

While dual living is becoming a lot more popular, Steve says finding the right property is not so easy. “I think the thought of dual living is definitely becoming more appealing. The realities of finding the right property are somewhat more difficult. One reason is the lack of dual-living properties for sale, particularly ones that are fully council approved. Some buyers need all the approvals in place and others are happy to buy them ‘as is’.”

Michael Bismire, the manager of planning assessment at the Sunshine Coast Council, encourages all buyers to make the appropriate inquiries in relation to buying a property that offers dual living. “Council recommends that people contemplating buying a house, which might also include a flat, granny flat, separate guest quarters, etcetera, contact council prior to finalising the deal to determine if the necessary approvals are in place,” he says.

“Making enquiries with council beforehand also makes good sense if a property owner is considering adding a flat, granny flat, separate guest accommodation or the like to their existing residence.”

So while the concept of creating a dual-living situation to help ease the mortgage stress seems like a great idea, it’s not just as simple as converting the garage or building a separate granny flat and whacking up a ‘for rent’ sign in the front yard. As a home owner, there can be tax implications from gaining rent from your principal place of residence, however, it’s the town plan that governs and approves what you can and can’t do with your property.

For years the property industry and home owners have been arguing that the process of creating a freestanding dwelling or guest quarters to an established residence on the Sunshine Coast is too arduous for property owners.

The current planning scheme allows for the establishment of only one dwelling unit on an individual residential block of land. Any other potential dwellings must go through a costly and timely approval process with the council and must meet stringent guidelines.

The industry has been pushing to see changes made to the current, and somewhat complex planning scheme to make it a lot easier for people to create dual-living arrangements on their property and to help ease affordability issues.

The current town plan has been undergoing changes, with the revised planning scheme (which was originally due for release this month), now rescheduled for release by council in mid next year. The provisions to create dual living as a residential property addition all fall under this town plan.

As it stands under this current plan, to create an annexed unit within a detached dwelling there are a number of prerequisites and guidelines which need to be adhered to. The most prominent include: the residential block must be a minimum size of 800 square metres; the annexed unit must not exceed 45 square metres in internal floor space and the combined area of the home and the unit must not exceed 50 per cent of the total land area; the dwelling must not have a fully equipped kitchen (only a kitchenette is permitted). The unit must also be located within, under or attached to the detached house.

Managing director of KHA and local town planner of 20 years, Andrew Stevens, says given the economic climate and affordability challenge, there’s a push for the town plan to better accommodate dual living in its scheme.

The new planning scheme will provide new provisions for dual occupancy, townhouses and a range of residential forms for the Sunshine Coast.  Warren Bunker

“I totally agree that the current planning provisions make it difficult to provide for affordable housing alternatives such as dual living,” he says. “The current codes that were drafted before the turn of the last century do not reflect current trends in dwelling occupation.”

It’s suggested by an anonymous spokesperson at council that the current strict guidelines on creating dual dwellings were put in place to control residential areas and adhere to zonings so properties weren’t being operated and used like an ill-approved duplex – occupying multiple people and multiple cars.

Andrew says the antiquated guidelines need to be adapted to the relevant needs of today’s society and this includes the provision for the additional living space to be larger and more equipped. “The current provisions need to be overhauled, allowing for the annexed unit to be fully self-contained and of a size that can accommodate a second residence.”

The Sunshine Coast Council is remaining tight-lipped about what changes will be made to the planning scheme once it’s released next year. However, Warren Bunker, the council’s executive director, department of regional strategy and planning, says some of the residential complexities in the current plan have been addressed. “The new planning scheme will provide new provisions for dual occupancy, townhouses and a range of residential forms for the Sunshine Coast,” he says.