Right Location, Wrong Budget

Case Study: Unlocking Affordable Homeownership in Canberra’s Inner North

The Challenge: Inner North’s Rising Prices

The Inner North of Canberra is a highly sought-after location due to its proximity to the city, established infrastructure, and vibrant lifestyle. However, for many homebuyers, the $1.5 million median price is simply out of reach. Young professionals, first-home buyers, and families looking to enter the market often find themselves priced out, forced to compromise on location or property quality.

The Alternative: Subdividing and Selling to Reduce Costs

Rather than abandoning the dream of living in the Inner North, savvy buyers are turning to subdividing and selling part of their land as a more affordable entry point. By purchasing a block with subdivision potential, homebuyers can reduce their mortgage burden by selling off the back portion of their land while securing a home in a desirable school catchment area.

Case Study: Affordable Entry with a Subdivision Strategy

Meet Emily and James Emily and James are a young couple in their early 30s, both working in professional roles. They wanted to live in the Inner North to enjoy the convenience and lifestyle, and more importantly, to secure a place for their children in a top-rated school. However, they couldn’t stretch their budget to $1.5 million. Instead, they explored a subdivision option.

The Strategy:

• They purchased an 850sqm block in the Inner North for $1.5 million.
• The existing home on the block was 145sqm, allowing them to subdivide the land.
• The block allowed for subdivision and the sale of the back portion.
• They secured council approvals and sold the rear block for $1,500 per sqm, generating $500,000 in profit after lease variation charges, utility connections, and services.
• With the profit, they significantly reduced their mortgage and were left with a home at the front of the block.
• Their new address ensured their children were eligible for enrollment in a highly sought-after local school.

The Outcome:

• Their net investment in the front home was $1 million, making homeownership more affordable.
• They reduced their mortgage, improving financial security.
• They retained the lifestyle benefits of being close to the city.
• They secured a spot for their children in a top-ranked Inner North school.
• They unlocked an estimated $500,000 in capital growth after the subdivision.

Why This Strategy Works

1. Affordability – Buying and subdividing in the Inner North provides an entry point below $1.5 million.
2. Mortgage Reduction – Selling part of the block generates cash flow to reduce debt.
3. Wealth Creation – Subdivision unlocks capital growth potential.
4. School Access – Living in the Inner North provides access to some of Canberra’s best schools.
5. Future Flexibility – Owners can choose to sell or hold onto the property for further gains.

Live Where You Want but Wipe Off 1/3 of Your Mortgage at the begining

If you’re struggling to buy in the Inner North but still want a home close to the city and top-rated schools, a subdivision strategy may be your answer. We help homebuyers identify the right block before they buy. This can work in most suburbs across Canberra for first home buyers, upsizers, or relocators locked out of the market. First steps are to reach out to Dual Occupancy Canberra, and we can provide a Zoom meeting to answer questions about what type of blocks, locations, and properties best suit this strategy.