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. We can save you the time and headaches of doing it yourself.
We have a step-by-step guide showing how we can help you to add a duplex development to your portfolio. This extensive guide below forms part of our duplex management process for our clients.
1. LAND ACQUISITION
- Short-list suitable suburbs and regions, based on your strategy and financial capacity.
- Check those areas for new land releases.
- 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.
- 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 and DA.
- Ensure the contract includes the maximum construction completion date, turnkey handover (ie. with all inclusions), a 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 times during construction. Having a team in both Sydney and Brisbane enables us to be able to easily manage constructions over a wide geographical area.
- Arrange handover of the finished duplex, including final inspection and approval.
STAGE 4. COMPLETION
- Arrange strata titling of the duplex units.
- Arrange property management if one or both units will be leased. We commence this process before completion.
- 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.