Duplex Case Study

How does an immediate equity gain of $183,778 sound from building a duplex? This recently happened to a client of Aus Property Professionals who did a development project in Armidale, North Western NSW.

Armidale is also anchored half way between Sydney and Brisbane on the New England Highway so its location is very appealing. Its airport services the Gold Coast, Brisbane and Sydney. After a thorough investigation, Armidale got the nod for this project.

PLANNING & CONSTRUCTION

We chose a great block in the very popular Sheridan Park Estate. The land was slightly sloping but not enough to add much to the cost of earthworks.

The next task was to get the Development Application (DA) approved. After a few minor hiccups, such as revising the floor plan to satisfy the council’s town planner, the go-ahead was given to build. Fortunately, Armidale council are very ‘duplex friendly’ as they are in a growth phase at the moment and welcome development. The builder then had to obtain the Construction Certificate (CC) before commencing, but this time was used to order the materials.

Nine months in total and project duplex was completed. We were able to strata title the units onto different titles so that we could see how much of that ‘magical’ equity we might have.

With strong tenant demand for quality properties in Armidale, both of the duplex units were rented almost immediately. The combined weekly rent is $760, producing a gross rental yield (760×52/586,222×100) of 6.7%. The owners have enough equity from this project to purchase further properties and fund development projects.

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