Two houses for the price of one… Sounds too good to be true, doesn’t it?
A duplex, also known as a dual occupancy build, is simply a residential building that has been subdivided into two residences. These residences usually share a common wall, but each home has its own entrance and amenities that cater for two sets of occupants.
Building a duplex is a solid investment and offers multiple advantages over building a single house. Not only is it a great way to make the most of your real estate investment due to the potential for considerable profit, a duplex can be easier to maintain and more cost-effective to build in a premium location.
What you’re able to do with a duplex depends on its title. If the two buildings are on one title, both homes must be sold together, but can be rented separately. If the homes are sub-divided into two separate titles, you will be able to sell them separately.
A Great Investment Opportunity
A duplex can generate a high rate of return. Depending on the location of your build, you could rent out each residence for $1000 – $1200 a week and achieve a higher yield then a standard house. You could also consider living in one of the homes and renting out the second to a tenant and you’ll still achieve an ongoing high-interest return.
The extra income you make from renting out a duplex can be used to pay off your mortgage or even be invested into another duplex development.
An Additional Income
If you’re looking for an investment opportunity with a big return on investment, building and selling a duplex can be a fantastic way to make a large profit.
Opting for a duplex over a single home means you’ll end up with two properties and an overall reduction in stamp duty, holding fees, insurance costs and council rates. It also cancels out strata fees and can increase your tax depreciation.
Here is a rough breakdown of the costs involved in building a duplex, though these costs may vary depending on location, the builder and other associated factors. The process of building a duplex, inclusive of land, construction, subdivision and council fees could cost $1,800,000 – $2,200,000. However, you could sell both for $1,100,00 – $1,400,000 each, making an immediate profit of $200,000 – $800,000.
Once your children have grown up and made the decision to leave the nest it can feel like you’re not utilising all the space in your family home, which may lead you to downsizing.
Building a duplex is a not only a smart move to make in terms of obtaining rental income for your retirement, but you will also be able to enjoy a modern open-plan home that’s suited to your needs. It’s also more likely to be located close to supermarkets, local cafes, parks and public transport.
Look After Loved Ones
If you have a loved one beginning to require additional care but opposed to the idea of a retirement home, a duplex is ideal. Having a duplex is a great way to keep them close, while also giving them enough space and privacy to remain independent.
You’ll be close by should there be any emergencies, without living on top of each other in the same house. This is an ideal option if you’re looking to support elderly parents, adult children or relatives.
Building a duplex gives you so many opportunities for investment, additional streams of income and family living arrangements. You can also customise your duplex to your family needs, lifestyle and budget. The beauty and practicality of a duplex is sure to enhance your everyday living!
If you’re ready to build a duplex on the Gold Coast, get in touch with the expert team at Cunningham Constructions and let’s chat about your options.