DUPLEX
The idea of building two homes on one lot is a very attractive proposition for some investors wanting to create immediate capital uplift and strong rental returns. However, this versatile investment comes with a higher price tag than a regular build (which may inhibit some investors) and should be viewed as a small development.
ADVANTAGES
– Opportunity to unlock potential in a block of land to create immediate value uplift and strong rental returns
– Multiple options at completion – sell both for profit, keep one and sell one, keep both with good rental return and potential for future capital growth.
– It’s one of our favourite investment strategies.
DISADVANTAGES
– Cost involved in doing a small development i.e., DA, strata fees, additional council fees, longer process (additional holding costs), land price is often more expensive, and availability of suitable land is often limited.
– Duplexes can be costly due to complexity if not done correctly or without the right advice.
