What is a duplex and what are the methods for insuring this type of property?
In the vibrant city of Melbourne, duplexes have become a popular choice for homeowners seeking an affordable and efficient use of land. These two-storey residences, offering separate homes on a single property, have gained popularity since the late 20th century, aligning with the city's urban growth and lifestyle preferences.
When considering a duplex, it's essential to understand the associated costs and considerations. For instance, a duplex is generally more expensive to buy or build than a single apartment or townhouse. Additional costs can include tax costs, civil engineering costs, connection of services, levies, and taxes.
One significant expense is land transfer duty (stamp duty), paid when you buy or acquire a property. The amount is calculated based on the dutiable value of the property. However, you may be eligible for an off-the-plan duty concession. To calculate your stamp duty, you can use the relevant online resources.
If your duplex is strata titled, you can sell and own one dwelling in the duplex. This arrangement also requires a strata (body corporate/owners corporation) insurance policy. The minimum owners corporation insurance includes public liability insurance for common property and building insurance for buildings on common property. On the other hand, if your duplex is non-strata titled, you must sell or own both dwellings in the duplex.
When insuring a duplex, the owner will need a building insurance policy that covers both dwellings/lots because they share a wall. It's crucial to ensure that your insurance adequately protects your investment.
Before making a decision to construct a duplex, it's advisable to consult with a residential home building expert. While duplexes offer numerous benefits, they may not be suitable for everyone. Factors such as privacy and natural light should be carefully considered during the design phase.
Lastly, it's worth noting that occupants can take out contents insurance for their items to further protect their belongings.
In conclusion, while duplexes present an attractive option for many homeowners in Melbourne, it's essential to understand the associated costs, insurance requirements, and considerations before making a decision. With careful planning and the right advice, a duplex could be the perfect solution for your housing needs.
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