May 02, 2017
Why Duplexes are the Rediscovered Darlings of the Property Market
There is no escaping the market ‘chatter’ at the moment about increasing property prices in the major capital cities. Housing affordability is a regular feature on news bulletins and the cause of much angst amongst aspiring property owners.
In an over-stimulated market, supply and demand will always be called into question, and people will seek out creative ways to buy in the locations of their choosing.
With the ANZ reporting a national shortfall of 250,000 houses, Mr Edge, a former teacher who re-discovered the power of the duplex, believes there’s never been a better time to create an extra income by helping ease the housing crisis.
Mr Edge was able to retire from the ‘rat race’ through building duplexes. He now has choices in his life.
“It’s not uncommon to make over $100,000 equity on a project like this, as once completed the two new dwellings are placed on separate titles. You also have two new rental incomes and because there’s now new housing for people in high-demand locations, everybody wins,” Mr Edge explains.
According to Mr Edge, small developments like duplexes are a great way for investors to create additional income while helping to increase housing supply. As long as duplex developments are kept small and under control:
- Most projects can be completed in under 12 months
- Lloyd’s first ever duplex project netted him $141,000 in immediate equity
- Lloyd recently had a client make just under $200,000 in immediate equity from their duplex build.
- There is a great demand from downsizers and small families who want to live in low maintenance accommodation.
- They are more affordable for people to buy or rent than larger houses.
- Putting together the right team can make these developments very achievable for the average investor
Many investors limit themselves to buying a property and holding it for the long term in the hope that they will build equity over the longer term. Mr Edge believes this doesn’t have to be the case, and there are much smarter, more efficient ways to build equity.
According to ATO data, 72.8% of individuals that own an investment property own just one. Meanwhile, 18.9% of individuals own only 2 properties while just 0.9% of individuals own 6 or more.
Mr Edge explains that it is often because people have the wrong financial structure in place, or they buy the wrong properties that prevent people from growing their portfolios to the level where they can achieve financial independence. Investing in duplexes with instant equity and the dual rental income can greatly assist with portfolio growth.