THE DUPLEX DRAWCARD
If you had to describe one of the biggest drawcards a duplex has to offer ‘two for the price of one’ might spring to mind – and surprisingly it’s not all that far from the truth either. Plus, the benefits don’t end there…
Opting to build a duplex instead of a single dwelling has the potential to double rental yields or markedly improve profits for investors. Owner-occupiers can also benefit from a duplex build, as it can provide an ongoing income if one property is rented, or the money from the sale of the other property can substantially reduce or even halve your mortgage.
Plus, by only having to buy a single block of land to build two homes the land cost is essentially half the price per home – bargain! On top of that the cost of building a duplex is almost always dramatically less than building two individual, freestanding homes. With all of that in mind it quickly becomes obvious that there are many advantages to investing in a duplex development – but is it the right option for you?
These days everyone loves a duplex
First home-buyers, young and older families, empty nesters and even retirees are all key sections of the real estate market showing increased interest in duplex options. While there are vast differences in the motivations for each of these types of buyers and renters there is a unifying benefit for investors or owner-builders – attractive return on investment. Basically, the increased popularity means the rental yields have rock solid potential and buying a single block of land and turning it into a dual property can result in double the sales.
Of course, you still will need to do your research to ensure this type of development suits your investment plans, as well as the market demand in your chosen area. So get to know your preferred suburb, its features and amenities, and the relevant real estate environment, i.e. it pays to determine what properties are selling/renting and what figures are being achieved. After you have that research sorted you will need to secure a quality builder with local experience, and ideally one who manages the entire process.
A duplex is all about location and land
Due to limited land availability in inner city and urban areas, and rapidly rising house prices, the types of homes many potential buyers and renters seek are changing. For financial reasons freestanding, ample yard homes are just not an option for many these days, or alternatively that type of home isn’t appealing if time or age is a concern when it comes to keeping up with the required maintenance.
For buyers and renters who are seeking a prime location and the lifestyle that comes along with that, the most realistic and appealing option often comes down to a choice between living in a duplex or an apartment. While many benefits run parallel, a duplex offers something an apartment can’t – land. Land in combination with a good location is what can provide longer-term capital gain and becomes a great point of difference for investors and homeowners interested in building a duplex.
Three additional reasons a duplex has great market appeal
A duplex only shares a single wall, as opposed to an apartment where buyers and/or renters could end up sharing multiple walls, floors and ceilings. A duplex also has some ground floor outdoor space, such as a courtyard or small yard for pets, entertaining or kids. Depending on the title structure a duplex also has much more flexibility when it comes to alterations down the track.
A duplex can have strata or a non-strata title
Each state in Australia has variations on strata laws, however it is something investors and owner-builders need to get familiar with, especially if one or both properties will be rented. The Strata Schemes Management Act 1996 outlines all the technical stuff you need to know. In short, unless you have come to an agreement to seek exemptions you often will need to establish an administration fun, a sinking fund budget and also pay joint annual insurance premiums. That being said the Strata Act is currently being fine tuned, which is why getting professional advice from a specialised lawyers is a good place to start.
Large or compact – a duplex can suit many land configurations
Many experienced duplex builders are able to best make use of your block of land, whether it is narrow and deep or wide and shallow, expansive or more compact. As long as you have adequate square meterage a contemporary design with street appeal (important to maximise capital growth) is always an option.
Most modern duplex designs will present a two-storey option to ensure the available land is being best utilised, while providing the dwelling the maximum floor space. A cleverly designed duplex will create the same sense of space and luxury that a similar freestanding home would, but importantly without the overheads.
Valley Homes are Newcastle and the Hunter duplex experts
The Valley Homes team of experts are here to talk you through the available designs and floor plans and help you determine if a duplex is your ideal development option. Plus, we’ll manage the entire process: design consultations, planning and council approvals, quality construction and premium finishes.