Duplexes: The Pros, Cons and why we love them for Australian property investors…

When it comes to purchasing an investment property, the options are more or less endless…

Location, type of dwelling, style, amount of land – the list goes on.

Because of this, it can feel quite overwhelming as a prospective investor, trying to find the right place to purchase to ensure your property is helping you reach your financial goals.

But that’s why we’re here! At Propell, we’re all about helping to educate you about the wonders of property investment. From the market, to psychological strategies, we use over 2 decades of industry experience to help you feel comfortable and confident when it comes to investing in property.

So, in the spirit of helping you grow your knowledge of property – let’s chat about a pretty underappreciated type of dwelling…

The Duplex.

What is a Duplex?

Well, to put it simply, it’s one parcel of land with 2 homes.

Most of the time, they share a common wall, but are situated on two separate titles, meaning they can be sold separately.

This also means they can be used either as dual investment (1 set of tenants in each home), or a home for you, and an investment for the second home.

So, why do we love Duplexes?

Well, let’s chat about the Pros of investing in Duplex properties:

1. They build EQUITY from the beginning.

   A Duplex development typically comes with some kind of subdivision of an existing (or infill) block, meaning that you are able to generate financial growth from the moment you lay out your plans.

   How?

   Great question! Well, consider this…

   If you purchase a block for $200K and build a quality house, your property may be worth $700-800K. This is great – and it certainly can be a great option for your situation.

   But, if you do the same thing, but build a Duplex, they could potentially be worth $450K each, meaning that rather than having $700-800K worth of value in your investment, you now have around $900K.

2. Multiple Income streams

   Alongside the fact that duplexes can build instant equity to your land purchase, you’re also likely to be receiving 2 streams of rental income. This is a great thing when you look at your investment from a long term perspective, as it ensures that you can make the most of a growing rental market.

3. Space Maximisation

   On top of that, Duplexes tend to be great homes for maximising space, whilst still ensuring that tenants are living in a high quality place that actually feels like home!

   Nowadays, as duplexes become more common, there are some very clever and well designed concepts that can be implemented into your own property. This ensures things are not only functional for residents, but also look nice too!

4. Lower Fees.

   As opposed to buying multiple apartments in the same complex, purchasing a duplex means that you’re far more likely to avoid needing to set up and pay strata or body corporate fees – which can certainly stack up when owning multiple properties.

   Like any decision in life, it’s important to look at both sides of the story – to ensure that we get the full picture. So, of course, like with anything, there are a couple of disadvantages when it comes to Duplex investment.

   The things to look out for:

   • Council Approval Depending on the council and state you live in, there may be varying regulations that determine whether you are able to build a dual occupancy residence.

   Alongside this, it is also incredibly important to be aware of – and factor in – the potential zoning and footprint considerations when it comes to building property. Things like frontage, building height and proximity to boundaries are all important factors to keep in mind. To learn more about the specifics in your area (or where you wish to invest), we recommend checking out your local council’s website.

   • Subdivision Again, it is important to consider local regulations when it comes to subdividing property. As most duplexes our clients invest in are on 2 titles, we always suggest ensuring that a block has confirmation of potential subdivision opportunities.

   • Functionality For the educated investor, this may go without saying – however, we’re going to mention it anyway! Building a Duplex relies upon the understanding that the property needs to be functional and liveable from a tenants’ perspective.

   So, as much as it can be easy to build a place and rent it out, you need to be sure you’re building a quality home that feels like home!

   With plenty of knowledge and understanding, it’s safe to say that savvy investors can bypass these cons without too much drama or stress.

At the end of the day, it’s all about being confident in your goals and direction as an investor. Often, that can come down to having a high quality team by your side to ensure everything is running smoothly.

From the first chat, to the hand over of keys and final inspection – we’ve got your back. At Propell, we build tailored property investment plans that aren’t centred around a template or blueprint. Instead – they’re all about YOU.

Interested in investing in a quality Duplex property?

Keen to learn more?

Reach out HERE, or give us a call on 1300 776 735 – we’d love to hear from you!