Dual Key vs. Granny Flat: Choosing the Best Dual Living Option

What is a Dual Key Property?

Under the dual key property structure, two independent living spaces link through one single entry point within a residential building. Multiple living spaces can exist within one title building even though they maintain separate kitchen areas, bathroom facilities and living areas. Dual key systems frequently appear in housing designs containing independent living sections adjacent to the main residential unit.

Pros of Dual Key Properties:

• More rental income: Generate rental income by Letting one unit while occupying the other.
• Lower Stamp Duty & Council Rates: Stamp duty and council rates are reduced as it is usually considered one property, thus the costs will be lower.
• Flexibility: It is a good option for extended families or short-term rentals.
• Higher resale value: It's more attractive to investors and homebuyers seeking additional income.

Cons of Dual Key Properties:

• Shared Utilities & Entrance: Residents using shared utility points with entryways experience reduced privacy advantages compared to independent homes.
• Resale Challenge: The resale market sometimes favours independent spaces that function autonomously from other residential developments.

What is a Granny Flat?

A granny flat represents a self-contained secondary dwelling which shares property ownership with the main residence. The complete living space in a granny flat has its access points including a kitchen and bathroom. The structure provides two key benefits, accommodating elderly family members and generating rental income.

Pros of Granny Flats

• Fully Independent Living Space: This type of housing offers complete privacy.
• Excellent for Family Use: Suitable for ageing parents, adult children, or guests.
• High Rental Demand: Appeal to tenants seeking affordable, stand-alone housing.
• Lower Construction Cost: Often cheaper to build than a dual key property.

Cons of Granny Flats

• Zoning & Approval Restrictions: Local regulations can limit construction.
• Limited Resale Appeal: This does not appeal to everyone.
• Smaller Living Space: Tends to be smaller than a dual key apartment.

Which Option Is Best for You?

Your financial objectives, lifestyle requirements and long-term goals determine whether you should choose a dual key property or construct a granny flat. A dual-key property fits best when you need rental income combined with flexible options. Building a granny flat proves most beneficial if you want complete independence for family members or long-term occupants.

Your decision requires consideration of zoning regulations, construction expenses, and anticipated market value when you decide to sell.