If an instant equity gain of over $100,000 sounds appealing, then building a duplex can do exactly that!
That kind of equity gain can help you to buy another property almost immediately, accelerating your investment property portfolio growth. And the dual incomes from renting a duplex can bring the next item on your wish list that much closer!
Not surprisingly, building a duplex is an attractive option for many property investors. But it has to be done properly to maximise your return.
Aus Property Professionals are duplex specialists with extensive experience in completing successful projects in Sydney, across NSW, as well as Brisbane and South East Queensland. We can save you the time and headaches of doing it yourself.
Our director Lloyd Edge has a step-by-step guide showing how he can help you to add a duplex development to your portfolio through his duplex investment strategies in Sydney and Brisbane.
1. LAND ACQUISITION
- Short-list suitable regions, based on your strategy and financial capacity.
- Check those regions for new land releases, including whether they've been registered.
- Check for suitable vacant blocks in established areas, especially among quality owner-occupied homes that drive market value – they can be great opportunities for capital growth.
- Check that council zoning allows duplex development on land being considered.
- Check for easements and covenants. If there are any covenants against building duplexes, we might be able to get them removed.
- Inspect prospective blocks to assess the location (eg. terrain, surroundings) for potential problems.
- Arrange soil tests to check how 'reactive' the soil is, and to ensure that there aren't any hidden chemical or physical conditions on the site that might damage your duplex after it's built.
- Short-list the most suitable blocks, and negotiate the lowest possible purchase price (often well under the asking price).
- Liaise with our surveyor and architect to produce working drawings of the proposed duplex.
- Arrange lodgement of the Development Application (DA).
STAGE 2. CONSTRUCTION CONTRACT
- Negotiate the lowest possible construction price with our large nationwide builders. The volume of work we give them enables us to negotiate construction contracts well below normal market prices.
- Ensure that the contract price includes landscaping, soil tests, working drawings, section 94 contributions, DA and strata titling costs.
- Ensure the contract includes the maximum construction completion date, turnkey handover (ie. with all inclusions), a 20-year structural warranty, and a warranty check-up after six months to fix any minor issues and ensure no major problems.
STAGE 3. CONSTRUCTION
- Maintain weekly contact with the site manager to check progress.
- Arrange regular updates with photos sent to our client.
- Make regular site visits to inspect progress and keep everything on track. Our team will visit the site several time whether it is in Sydney, Brisbane, or any regionals where we are doing the project.
- Arrange handover of the finished duplex, including final inspection and approval.
STAGE 4. AFTER HANDOVER
- Arrange strata titling and property management if one or both units will be leased.
- Advise you about the best insurance cover.
- Arrange a depreciation report for your tax return.
- Assist with refinancing to take out equity if you want to purchase another property or pay down other debt.
Director, Aus Property Professionals
Lloyd Edge holds real estate licences in NSW and Queensland. He has a thorough knowledge of the Sydney and Brisbane property markets as well as key regional areas in both states. Although he's a fully qualified real estate agent, Lloyd only works on behalf of you, the buyer.
Book a free Aus Property Professionals one-on-one strategy meeting in your home or office, or by phone or Skype. Call 1800 1 INVEST (1800 146 837) or send us an email today!
Read about our latest successful duplex development!