DOUBLE THE VALUE WITH A DUPLEX

As a starting point you might want to know what exactly is a duplex. It might seem obvious but a duplex is a type of dual occupancy development - basically two homes built on the same block of land that share a central wall.

Duplexes are sometimes on one title, meaning both halves must be sold together (ie dual key), or if a duplex is subdivided into two separate titles – either Strata or Torrens, each home can be sold separately.

If there was ever a great time to be looking to build a duplex it’s now and here’s why:

Also known as attached dual occupancy each residence is a completely separate home, with its own entrance, parking and yard. There’s an increasing demand for affordable housing across New South Wales and most especially in fast-growing regional areas such as Newcastle and the Hunter Valley.

The latest Department of Planning population projections show an additional 131,500 people living in the Hunter region by 2041.The Newcastle Local Housing Strategy also projects the population in the City of Newcastle to increase by around 41,000 people between 2016 and 2041, so they’re anticipating a demand for 19,450 new dwellings by 2041. With these sorts of increases, not everybody can expect to be living in a freestanding house on their own block of land.

In Newcastle, household sizes are expected to shrink over time as more people live alone or as a couple without children. Diversity is the key and that’s where the duplex builder slots right in!

Is a duplex a good investment?

Duplexes exist because they have such a great potential to make money. The cost to build a duplex is usually cheaper than building two houses, the build duration is less and because both dwellings are on the same block, the land costs less than two separate lots.

A duplex can be double or single story and there are a great variety of duplex designs to include any number of rooms. By researching the suburb in which you plan to build your investment property, you can determine whether the demand is for family homes, or smaller dwellings and build to meet that need. Duplexes have broad appeal being suitable for families, first time buyers with modest budgets or retirees looking for a low maintenance home.

Building a duplex creates equity and at the same time renting out either or both the properties gives you an ongoing high-interest return. A lot of duplex builders choose to live in one property and rent the other out thus benefitting from a regular income. 

Whether you’re a developer or investor builder, the Hunter Valley is a great place to consider an investment property. According to the most recent report from NSW Government’s Annual Population Insights (Dec 2020) housing prices in regional NSW have risen by 3% since April 2020, outperforming those in Greater Sydney. There’s also a demand for more rental properties as increasing numbers of Sydney-siders, working from home due to the pandemic, are relocating to enjoy the benefits of regional living.

Two sides to every story

If building and investing in duplexes was simple then everyone would build them but there are numerous factors to consider regarding duplex build costs and regulations.

A duplex requires a large block of land. Blocks with existing approval can minimise the hassle, but generally cost more than a comparable site. If you decide to ‘knock down and rebuild’ on an existing property remember to add demolition fees to your budget.

Because you’re essentially building two houses the initial outlay is large. Some financial advisers suggest at least 20% deposit is necessary to build a duplex—a lower deposit would create a higher risk. It’s essential to develop a thorough financial strategy before building any investment property.

Everybody needs good neighbours…

If you decide to live in one unit your biggest concern will be your neighbours because you’re sharing a wall with them.   This is fine if they’re the quiet retiring types but you really don’t have much control over how noisy they’ll be. If you’re renting out the other duplex ask yourself if you’ll feel comfortable being in such close proximity to your tenants?

Location, location!

Be aware that all local councils have different zoning rules so it’s worth doing some research on local Council laws. The Low Rise Housing Diversity Design Guide provides specifics on duplex designs and regulations. Or you may call the town planner at Council and ask for the zoning and if dual occupancies are permissible on your land.

We can make it easier

If you’re looking to invest in either the Hunter Valley or Newcastle, Valley Homes can provide a range of duplex plans and prices to match your budget and your block of land. The Valley Homes team even liaise with Council, manage all paperwork and applications including your Strata or Torrens title subdivision, coordinate all trade contractors and everything else in the tender to take the stress away for you and reduce the duplex build cost.

Take a look at our diverse range of fully customisable plans and get in touch to see how we can help you realise your ideal investment property.

by Super Admin

BECAUSE SOMETIMES MORE IS MORE - MULTI HOUSE DEVELOPMENTS

Valley Homes has been building Australian homes since 1982. Over the years we’ve built affordable first home buyer housing, acreages, duplexes, and custom designed homes, some of which have been recognised with housing awards.

Our suite of services has been expanded to include large scale multi-house developments, such as defence housing projects and over-50s luxury estates. This expansion has proven to be an exciting and successful shift for Valley Homes’ expertise in greater Newcastle and the Hunter Valley.

The property market in Australia has been shifting for some time towards both a high-density model in and around city centres, as well as the demand for entirely new suburbs to be created in the surrounding regions. This has opened up new opportunities for investors and developers to cater for this dual type of demand – requiring a builder that is experienced in multi-unit as well as multi-house builds.

People living in greater Newcastle and the Hunter Valley are in a fortunate position to choose between high density dwellings or choosing the idyllic lifestyle of a large backyard and fresh air, as provided in the new suburb builds currently being developed in relatively close proximity to the city centre. Valley Homes is an experienced new suburb builder with extensive private building knowledge, as well as years of working on government large scale projects. We have seen the benefits first-hand that these new suburbs offer for the investors backing them, as well as the new residents who get to enjoy them.

Of course, having the drive and the funds available to finance a new suburb build are paramount, but having a reliable and highly experienced multi-dwelling builder on your team will greatly impact your investment’s bottom line. Local information

and resources can make quite a difference in the efficiency of project management, as well as the ability to source from premium suppliers and contractors. This makes Valley Homes perfectly positioned to continue to build multi dwelling builds in greater Newcastle and the Hunter Valley, particularly as our past successes demonstrate our ability to complete projects on time, on budget, and finished to a high standard.

Experienced with large scale projects

From rows of beautifully appointed two storey terraces, affordable single storey duplexes, through to large scale, multi-phase developments, which require adhering to strict design guidelines and timelines, Valley Homes knows the ins and outs of a new suburb builder whether in the private or public sector. Through government-backed housing projects, such as our recently completed regional defence housing builds 5 stage, 200+ dwelling project, and the current construction of the over-50s lifestyle estate Tallowood Medowie, Valley Homes has gained experience not only in building incredible houses, but also building infrastructure to ensure each new suburb has the potential to become an outstanding community. This includes designing and creating shared spaces, as well as communal landscaping initiatives.

The strength and stability required for multi dwelling projects

Of course, knowing your builder’s experience level is vital, but in addition to this we understand that economic stability is just as crucial. Which is why we’re proud to say our business is financially well-positioned and highly secure to take on large scale projects. Our Capability Statement is available upon request and outlines the measures we have in place. This information should provide investor-developer confidence in Valley Homes’ ability to complete large scale projects, whether single or multi-phase, and means investors can be assured they will be moving onto the sales or property management phase of their project as quickly and cost effectively as possible.

Booming market opportunities

Valley Homes’ head office is situated in Maitland, giving easy access to builds from greater Newcastle through to the Hunter Valley and beyond – which is a huge benefit to this highly sought after property market for large scale investors. The region is growing rapidly and building tastes are evolving, making multi-dwelling new suburb builds highly appealing for both locals and developers. This demand is supported by the fact that overheads are much lower in these regional areas in comparison to larger cities, yet the region has a very healthy economy and employment record - meaning top sales and rental figures can still be attained. Plus, recent government legislation changes have also streamlined some of the approval processes, meaning less red tape and more reasons to speak to experienced new suburb builders about getting your multi-house development underway.

For a copy of our development Capability Statement and to arrange a time to meet and find out just what our experience can do for your bottom-line, please get in touch.

by Super Admin

MAXIMISE YOUR RETURN ON INVESTMENT: FEASIBLE DUAL OCCUPANCIES

Valley Homes are specialist Dual Occupancy builders – we've transformed hundreds of Newcastle’s backyards and blocks of land into dual occupancy or duplex developments. In our experience, if there’s a single step that improves our clients’ chance of a healthy return on investment it has to be a comprehensive feasibility study.

If you’re not sure what feasibility studies are or what they entail, feasibility studies are a crucial step in turning a single dwelling property into a profitable dual occupancy, especially if you are new to property investment – because due diligence and a successful development go hand-in-hand!

So, let us help you get that all important spreadsheet started…

Filling out your feasibility study spreadsheet starts with speaking to quite a number of people, such as:

1. Your accountant (preferably a property specialist)

2. Your loan manager or financial lender

3. A solicitor/conveyancer to estimate what their rates will be

4. Your local council for estimated DA and CC costs (oh and while you’re talking to your local council make sure you read their Development Control Plan and Local Environment Plan too)

5. A builder who is experienced in dual occupancy developments – beyond just simple granny flats to experts in single dwelling multi-bedroom homes (AKA Valley Homes)

6. A surveyor to discuss the potential subdivision of the land

7. and finally, the local real estate agent who will be the face of your sale or rental pitch.

But before you speak to any of the people mentioned above, you’ll need to know what information to get out of them…

Figures you must include in your feasibility study:

1. Land purchase / acquisition cost: this section needs to account for the total costs spent upfront on the investment. This can be an estimated sale price – simply update later when your costs are finalised. When entering your purchase costs, stamp duty, land valuation, even conveyancer fees etc. should also be entered here.

2. Financing costs: If you are borrowing the funds to build your dual occupancy development this section of your feasibility study includes the total amount to be borrowed, and details your repayments and estimated interest to be paid over the period of the loan. Loan types can vary depending on your individual development, with many investors using a land purchase loan and/or a construction loan.

3. Council rates and regulations: While experienced builders help manage the council fees and permits, you also need to know what the council land rates are for your property as this will impact on your overall income if you are planning to rent one or both homes to tenants. There are also a number of other potential council costs, such as zoning regulations, heritage listings, and sub-division costs.

4. Construction costs: If you are able to lock-down a fixed-price contract it will provide you with the most watertight forecast from a budgeting standpoint. However, any detailed quote from an experienced builder will help indicate what will be one of the largest figures entered into your spreadsheet.

5. Utility connection fees: While this might not be a large consideration if you are simply connecting an additional single dwelling on the existing property, but if you are planning on a knockdown rebuild with a multi-unit development, then your utility connections may add up quickly.

6. Selling and marketing costs: If you are not selling or renting the new build privately, you should factor in the Real Estate Agency fees to make sure you have covered all of the potential costs this project will require. After all, you may have a quality development, but if you can’t sell it you might end up eating into potential profits at the last hurdle. Also, ask for the potential sale price or estimated rental income.

7. Insurances and GST costs: There are many types of insurances associated with a dual occupancy development. A reputable builder will provide their own insurances that cover the building process, but it is an astute investor who knows the insurance costs to cover repayments etc. Also, depending on how you are operating your investment project, i.e. as a business, GST may be something you need to pay.

8. Contingency: Just as the word implies, contingency is an additional amount usually calculated at around 5 to 10% of the overall cost of the project. Think of it as a rainy-day fund to ensure your project has the funds to keep going when and if unexpected issues arise.

Now for the finale…

9. Projected profit / income from your investment: All going well, and if your project is to be deemed ‘feasible’, this field will give you a positive figure at the bottom of your spreadsheet. If not, don’t give up hope. Speak to your dual occupancy builder, shop around for a more favourable financial institution, and of course, tweak where you can.

by Super Admin

BUILDING A DUPLEX FOR INVESTMENT

There are some obvious advantages to building a duplex as an investment property. One of the most popular drawcards is the instant equity you can achieve on your land and you get the value of two new homes at a fraction of the price to build two freestanding homes. Plus, with the sale or rental of two properties you can even be either debt free or cash flow positive fairly quickly after completion, and savings can also be made with stamp duty new build policies.

But what we want to talk about today is yet another perk of duplex builds, something not all investors are aware of – tax depreciation.

What is tax depreciation?

According to one of our local specialists in tax depreciation, Capital Claims, “Capital allowance and depreciation are some of the largest tax deductions available to property investors.” So if you’re looking to build a duplex as an investment property, either as first-time developer or even if you’ve been a long-time investor, but don’t know how to capitalise on your investment property with a detailed depreciation schedule, you need to read on.

Tax depreciation can literally mean thousands of extra dollars in your pocket annually.

Basically, tax depreciation is a term that describes substantial deductions that are available at tax time. These deductions are available to investors in both commercial and residential property markets and are calculated on the depreciating value or both the building structure, as well as the plant and equipment components of the property. Plus, tax depreciation new build guidelines are the most beneficial to investors under the current government policies.

How much depreciation in deductions could you be earning?

Plant and equipment deductions are all dependant on the specific items and their annual decrease in value as determined by the Australian Tax Office (ATO). It is calculated by starting with the purchase price, and then depending on the item, there is a period of depreciation that you can claim.

Structural depreciation otherwise known as capital works deductions are determined on the cost to build a duplex, calculated over a 40 year period from when your new duplex was built. NAB recently wrote about Tax Depreciation, for a “new building that cost $200,000 to build, you could claim up to $5,000 each year for 40 years”.

You can work out how much tax you could be claiming using online tools, such as the BMT Tax Depreciations calculator, but it is always recommended that you engage an experienced and specialised Quantity Surveyor. It is the Quantity Surveyor’s job to collate a report outlining the deductions available to investors and developers – and this can be done before the duplex has even been built or is ready to rent. This allows you to have a complete and comprehensive idea of your exact expenditure and ongoing investment returns, up-front.

After the new duplex investment property has been built the Quantity Surveyor can then issue you with a Tax Depreciation Schedule that you simply forward to your accountant to receive the ongoing benefits of tax depreciation on your new duplex build. You can download sample depreciation schedules to gain a clearer indication of exactly what you can claim and the % amounts.

New duplex builds are even better investments with astute tax depreciation claims

As mentioned in the introduction, and outlined in previous articles, new duplex builds are one of the best investment property options available in this current market. The cost to build a duplex, while slightly more than a single freestanding home, is not as much as building two freestanding homes, yet you get to benefit from the increased value of owning two homes with dual income opportunities. There are a wide range of duplex plans and prices available, ensuring you can tailor your build to your budget, block requirements, and what the buyer or rental market is demanding. Plus, Hunter Valley and regional Newcastle block sizes are well-suited for a comfortable duplex build that has all the street appeal of a freestanding home.

Discuss property investment with us today – we’re your local duplex builder and have years of experience designing, planning and constructing duplex investment properties in your area.

Previous articles:
INVEST IN THE HUNTER: DUAL OCCUPANCY OPPORTUNITIES
DUPLEX BUILDS: SUBURB AND SITE SELECTION
DUPLEX DESIGNS NEWCASTLE AND SURROUNDS

Disclaimer – the information in this article is general in nature only and does not constitute professional financial, legal or taxation advice. Please consult a registered financial planner, legal practitioner or tax accountant for specific advice about your individual circumstances.

by Super Admin

INVEST IN THE HUNTER: DUAL OCCUPANCY OPPORTUNITIES

The Hunter Valley continues to invite a lot of interest from all levels of property investment; from young families through to professional property developers one of the most requested developments in the Hunter is dual occupancies. This is why…

The perfect property storm for regional Australia

The recent Sydney and Melbourne housing boom pushed first home buyers and young families to explore more affordable lifestyle opportunities further afield, and took them to regional centres with solid career opportunities just like Newcastle and the Hunter Valley. In-turn this created a steady demand for home ownership and properties to rent in regional areas.

In addition to that, the current decline in the Sydney market means investors are also driven to investigate better value development options in regional markets that offer better returns on investment. This situation means both buyers and investors are choosing to spend their money in places like Newcastle and the Hunter Valley, which is why the land values and property prices are faring very well in this current market.

Looking beyond Newcastle for property investment

Newcastle city offers a variety of employment prospects for a number of industries and can provide a coastal lifestyle with great access to first class amenities, all with a substantially smaller price-tag than that of Sydney. But while Newcastle continues to be a relatively stable and appealing property market, ideal for developments attracting sales or tenants, there is a nearby property player starting to make even bigger moves.

Through added infrastructure, such as the Hunter Expressway, economic opportunities through the growth of regional tourism, the wine industry, mining, and agriculture, plus luxurious lifestyles due to lower overheads and more affordable land values, the Hunter Valley is set to be one of Australia’s big regional performers.

Dual occupancies in the Hunter Valley

It is definitely hard to deny the appeal that the Hunter Valley holds when you compare value for money on similar investments in city-based locations, particularly when the demand from families and first-homebuyers is steadily growing and land prices are holding their own. Basically, dual occupancies are a flexible and stable investment, which is why dual occupancies are the developer’s go-to for new home builders.

Many existing Hunter Valley homes are on a large block of land, as well as there being many generous size empty blocks available, which is why dual occupancies are so ideal. That is, buyers are attracted to new home affordability, and investors appreciate the relatively low risk investment that increases equity in the land for sale or rent, as well as provide opportunities to develop ongoing income streams.

Council resources for dual occupancies

There are a number of regional councils that make up the Hunter area, including Cessnock, Maitland, Dungog, Port Stephens, and nearby Newcastle. Each council has different processes and development requirements, that as local dual occupancy builders, we are very familiar with. Cessnock city council has some very helpful fact-sheets available to download: Urban dual occupancy, Rural dual occupancy, and Subdivision of rural land. Or on the Port Stephens Council website it states, “Dual occupancies can be subdivided where the resulting allotments meet the minimum lot sizes for the zone under the Local Environmental Plan 2013.”

Detailed information such as this, which relates to regulations, highlights how important it is to know your local council requirements. As your local dual occupancy experts we can help you wade through all of the facts.

Dual occupancy vs Dual dwelling

Maitland City Council also services areas of the Hunter and its website has a variety of online forms and brief supportive information regarding DA Applications too, but another big question we get from clients after visiting council websites such as this is, “What is the difference between dual occupancy and dual dwelling properties?” Well, basically a dual dwelling refers to a small structure built in addition to the primary home, often referred to as a ‘granny flat’ or ‘studio/retreat’.

Dual dwellings or granny flats are standalone buildings and are usually self-contained with a small kitchen and bathroom, and usually have one or two bedrooms. But these structures must comply with size restrictions and as such must not exceed a set square meterage. Depending on your local council this is about 60m² floor space. A dual dwelling is not as large as a standalone home, as is the case with a dual occupancy, and generally is not fit to sub divide.

Hunter Valley dual occupancy builders

Valley Homes have a lot of regionally specific dual occupancy information to share. Simply phone 02 49341400 or email sales@valleyhomes.com.au and our specialist team will answer all of your dual occupancy questions.

We also have a range of articles outlining the benefits of building a dual occupancy. So, please have a read:

Subdivide, build, increase equity and achieve your property goals

The developer’s go-to: dual occupancy

Fast-tracked approvals for dual occupancy

by Super Admin

DUPLEX BUILDS: SUBURB AND SITE SELECTION

Duplex builds have broad appeal across all demographics, are relatively low risk, and can offer solid returns, such as a dual income stream – and while ensuring you have an experienced builder managing your new build is essential, so too is finding the right block of land. So, let’s delve into the two main factors you need to consider when starting out with your duplex development – which suburb to build in and what type of block should you be seeking out.

 Choosing your duplex suburb

When choosing the most suitable suburb for your duplex build, both central and outer suburbs can hold great appeal. Outer suburbs can mean there is more available land to choose from, which often translates into less expensive land values. Plus, if you’re lucky, the block of land may have already been cleared or doesn’t have a structures on it to clear at all, meaning the knockdown and site preparation costs can be minimal.

However, while there are all those cost-positives about outer suburb duplex developments, the sales prices and rental returns will in most cases be less than you could expect to get on the same quality of build in a more centrally positioned development. You’ve heard it before, but location counts. Of course, sought after locations generally have a higher land value. So yes, those inner city and central developments may attract bigger resale and rental prices, but they also require a bigger investment in the first place.

In addition to that, a suitable block of land, one big enough for a duplex build, can be hard to come by in inner city locations where block sizes tend to be smaller. Also, finding an empty block of land is going to be near impossible. So, you will need to factor in clearing the land into your development budget. Another consideration is that a block of land which has an existing structure is often more expensive than an empty block of land – so that’s just something extra to keep in mind.

Essentially, inner or outer, the final decision is going to come down to your finances. That is, how much money do you want to pay for your block; a more modest budget may mean an outer suburb is going to be the best solution, but if you have a larger financial resource to draw on, then the potential sales prices and rental figures of a more centrally located duplex might lure your development closer to a city centre.

Keep in mind, to achieve the higher figures often seen in city sales, your buyers will have greater expectations for premium fittings and designs, to reflect the prime location. So, building a duplex with an experienced duplex builder who knows the ins-and-outs of the local buyer’s market is recommended.

Regardless of the suburb you end up selecting, be sure to take note of all the other services and amenities available in the local area. This will be a key selling tool later on. For example, if your local suburb has a University, a large regional hospital or medical centre, quick access to the Freeway, or a highly sought-after school, you will want to know this before any development build starts, so that you overall design can cater directly for that market, maximising the potential for your duplex investment to be a success.

Finding your duplex block

Once you have your suburb sorted, finding the perfect block of land to build a duplex can be quite a challenge. As mentioned earlier, you may need to look for blocks that already have buildings on them, which can increase the land value. If that is the case, ideally you will be looking for properties on the market that have rundown houses on them. The less interest the market has in the house itself, the more favourable the price of the investment will be. The old adage rings true here. You want to be looking for the worst house ion the best block. Just make sure that block has the right sort of zoning you will require to build a duplex development.

On the other hand, you might be fortunate enough to find a decent size, empty block of land. And that would most likely be cheaper than a block with a building on it. But before you jump at it, make sure all of the site-specific features of your block suit a duplex build. If it has a heavy slope and/or has large trees on it, the site preparation or increased slab requirements may mitigate any savings you’ve made by buying an empty block.

Empty or not, the block needs to be big enough for a duplex build, and that generally translates to either width or length.

Here at Valley Homes we have an extensive range of duplex plans ready to view online, that outline the square metreage required, as well as the floorplans. Also, your local council will have minimum size requirements and distances from boundaries that you will need to adhere to – so do your homework ­– or simply talk to us, and we’ll help do it all for you

by Super Admin

DEVELOPER CHECKLIST: QUESTIONS TO ASK YOUR MULTI-UNIT BUILDER

Once a multi-unit build is underway, a developer and builder need to work closely together, possibly for an extended period of time, to achieve successful results. So, to establish a healthy building relationship from the outset, one that continues to deliver throughout the duration of a multi-unit development project, we suggest you ask your potential builder as many questions as possible. This includes questions about past clients, as well as sub-contractors and suppliers.

Reputation is a key indicator of performance

Establishing the builder’s reputation is not often achieved via direct questioning of the builder, but rather it is uncovered by asking the broader development community their opinions and knowledge of track records. The importance of how a builder is perceived can never be underestimated, especially when it comes to an investment as large as a multi-unit development.

After all, the building industry is no different to any other industry in Australia; people talk and dissatisfied people tend to talk the loudest. So, ask around, and if you start to hear negative buzz surrounding a builder, pay attention and do plenty of research relating to their suitability.

Ask to see the builder’s portfolio

Ensuring a builder understands the style and unit designs required for a development is critical. If the builder specialises in a certain style, be it large scale off-the-plan projects or small bespoke unit designs, make sure it aligns to your style and investment plans. In addition to the many styles available, past multi-unit developments’ project size and budgets are other points to take note of when looking at a multi-unit developer’s portfolio.

Take special notice of materials, finishes, and the unit designs floor plans, which will all indicate the standards you can expect from them if a future development were to go ahead. And while photographic portfolios are a great place to start, try not to rely on portfolios such as these to answer all of your development questions. By visiting some of the completed projects that enjoy some similarities with your multi-unit development, and the specific unit designs, can help determine if that particular builder is up to the scope and budget of your multi-unit investment ambitions.

Their team will be your team, so get to know them

A multi-unit development is a complex and often multiple-staged project. As such, there are many more people involved beyond the core team of sales, drafting and builders. A multi-unit development builder will also rely on the skills of their sub-contractors, plus the quality of the materials sourced from their suppliers. So ask any potential builder who they work with and try to gauge if they have a good relationship with them. A long-term relationship with suppliers and sub-contractors is a good sign that the builder operates professionally, and in-turn it may indicate the potential for future developments’ success.

Registrations and insurances are a must

All registered builders have builder registration numbers, so that is an easy and obvious check to make. Builder memberships can also be useful to know, as it can provide assurances of industry approved performance levels, and these include the likes of Master Builders Association etc.

Then there are insurances. These are critically important, legally and financially. A multi-unit development builder is required to have adequate public liability insurance, as well as construction insurance. And you must make sure your build is going to include a Home Warranty Insurance. Any reputable multi-unit builder will be more than willing to outline this information without any fuss.

Costs and payments, what is the builder’s process

Costs to build a multi-unit development rely on many factors and you should become familiar with all of them. It is vitally important for any investor to understand all of the clauses in the contracts and read the fine print. Importantly, before signing anything you should know what is included in the fees; ask if the surveying fees are included and if soil testing costs are covered. Find out what is the pricing structure and the processes relating to unit designs variations or changes to the schedule of work. Ask, what are the payment processes? Also, a percentage of the overall cost to build a multi-unit development is expected before work commences, and you should know exactly what the costs to build a unit are, up-front.

Don’t be afraid to get into the specifics either. Specifics could include invoicing procedures, plus payment terms and schedules, as well as establishing the expectation of finalising payments at the conclusion of the build during handover.

It’s easy, simply contact our experienced multi-unit team to arrange a meeting.

OR start completing your checklist for unit builders Newcastle right now by clicking the links below:

Hear from some of our recent clients

Browse our portfolio of recent projects

We build using quality materials, fittings and fixtures from our long-term suppliers

Discover our select range of partner services to ensure every build is of the highest standard

by Super Admin

DUPLEX DESIGNS NEWCASTLE AND SURROUNDS

As experienced duplex builders Valley Homes has been bringing to life a range of duplex designs for many years now. While the duplex plans and prices may vary depending on the block size, developer budgets, and build timeframes, one thing is always consistent for the developers – the location of their development underpins the project’s overall success.

Duplexes are as popular as ever in the Newcastle region

Duplexes in and around Newcastle are still steadily rising in popularity for many reasons, including reduced land availability and the rising cost of land. Duplexes are also still one of the best ways for a first time developer to enter the property market, and they are also an incredibly sound investment if you have chosen to build a duplex as a means of increasing the equity in your land. So duplexes have a lot going for them.

However, no matter how great your duplex designs are, or how attractive the affordability of duplex build costs are, choosing the best location to build your development is essential. Because as all experienced duplex builders will tell you, a duplex build needs to be servicing a demand for housing in the area in which it is being built. That is, having the land and the plans are one thing, but having the market demand is another requirement entirely. And this can be where it pays to look beyond city centres to the surrounding suburbs for your duplex success story.

Outer Newcastle suburbs continue to attract duplex developers

When deciding to build a duplex the position of the land, especially in terms of natural features, community services, and regional amenities, is paramount. Fortunately for the Newcastle region it definitely ticks a lot of boxes when you go through a builder or developer checklist, proving itself to be an ideal area to build, particularly due to the region’s fast growing economy and population.

But like all regional centres, Newcastle city itself makes up only a small part of the areas geography, and popular duplex and townhouse designs and prices are just as well-suited to surrounding suburbs that can offer greater land availability, more competitive block prices, and good proximity to other drawcards the region has to offer, beyond city-living appeal.

For years we have been working with many local developers to refine our cost to build a duplex, as well as our duplex designs. Over this time we have started to see new opportunities in a number of suburbs, suburbs that are being sought-after by the developers we are duplex builders for. The suburbs of Kahibah and Jesmond are just two of these rising regional stars, and they seem to be coming out on top for good reason…

Jesmond: beyond the student market

The University of Newcastle is a major drawcard for Jesmond developers, particularly when it comes to duplex plans and prices targeted at providing student housing solutions. But a growing trend is seeing developers look beyond the student market to also service the thousands of staff that work at the University. After all, many Australian academics, as well as international professors, need a well-appointed place for their families that is also close to where they are working. Jesmond also has a shopping precinct, close proximity to a number of public parks, is next door to the new bypass, and is minutes from the freeway – making it an attractive suburb for property investment.

Kahibah: minutes from quiet beach escapes and the region’s biggest shopping centre

Kahibah is a town that is definitely on the move. It has great coastal access to Redhead and Dudley beaches, is only a stone’s throw away from Glenrock lagoon, including its walking and bike tracks, and Kahibah is neighbours to Charlestown, which boast a massive shopping and entertainment centre. Plus, only a few minutes on the Pacific Highway in the opposite direction will take you to Newcastle’s city centre. Yes, Kahibah is a central location and so it follows that duplex builders, like us, are seeing unprecedented interest from developers who are requesting information on the cost to build a duplex in the town. This seems especially true for families and first-time developers who recognise the opportunities in Kahibah’s generous sized blocks that also happen to be well-suited to our extensive range of duplex designs.

Duplex designs Newcastle, Kahibah, Jesmond…

Valley Homes has ten complete duplex plans and prices ready for local developers to start their build. The collection includes townhouse designs and prices, as well as single level duplex designs, featuring a variety of facades, finishes and fixtures. And of course, we can customise duplex plans and prices depending on the individual developer requirements.

Our team of duplex builders know Newcastle. We know the ins-and-outs of duplex build costs and we know outstanding duplex designs. Plus, we also know what is already working for the region’s top developers. So contact us today to find out how our expertise can help your duplex plans become a reality.

Interested in duplexes in and around Newcastle: take a look at some of our recent duplex builds

by Super Admin

TEAMING UP WITH TALLOWOOD

Valley Homes’ exciting new development partnership

Introducing Tallowood Medowie. Our most exciting multi-unit development to-date. A resort-style, tree-lined village for over 50s in Medowie – and we can’t wait to tell you all about it!

Downsize without compromising

As the exclusive builder for Stage 1 of Tallowood Lifestyle Estate, Valley Homes is excited to be breaking ground with 42 architecturally designed homes. Our designers have created six clever and stylish floor plans for residents to choose from, all featuring a host of quality inclusions, such as generous-sized rooms, premium quality fixtures and fittings, beautiful timber floors, open-plan kitchens/living spaces for easy entertaining, undercover alfresco areas, and even a range of garage options to suit the individual needs of anyone fortunate enough to call this estate home.

Resort-living luxuries are all part of the package

The estate has it all, even boasting resort-lifestyle facilities designed to pamper, socialise and entertain residents. Some of the benefits of being a resident include a wellness centre, heated lap pool, cinema, library, bar and clubhouse, not forgetting the easy access to Medowie’s nearby golf course, shops and cafés. Tallowood’s central location also means residents can just pop over to Port Stephens, take a day trip to the vineyards or head into Newcastle for dinner and a show – then return from any adventures to a completely secure, gated estate.

Building a secure village, warranties included

The estate offering really does get better, because beyond the safety provisions of the overall estate design Valley Homes’ strong warranties give retirees and their family’s peace-of-mind that their investment is completely secure. The warranty package includes 13 week defect liability, 6 year structural, and a 2 year non-structural, plus other warranties covering appliances, termite barriers, windows, and garage doors.

These extensive warranties are a point of pride for our team, because we understand that an investment at this stage of life needs complete surety, and the aim is to downsize your home, not demolish your retirement plans.

Browse the Tallowood Gallery

So talk to our team about becoming part of this exciting new property development, or register your interest with the team at Tallowood today.

by Super Admin

FAST-TRACKED APPROVALS FOR DUAL OCCUPANCIES

Earlier this year a new Low Rise Medium Density Housing Guide was introduced in NSW and since then councils, including Newcastle and around the Hunter Valley, have implemented changes and updated their systems for more streamlined land development procedures, including the ability for property owners to sub-divide their block of land to maximise the land value, providing easier access to particular types of property investment. As a result, now is one of the best times for homeowners and developers looking towards a dual occupancy opportunity to select their preferred builder and start the development process.

Why are dual occupancies being encouraged by government?

Dual occupancies are increasingly encouraged by both government and local councils because two types of properties still dominate the NSW building market – traditional free-standing homes and apartments. While these types of dwellings are great for some sections of the investment and owner-occupier property markets, many people are seeking either more affordable alternatives or have specific size and design needs that are just not met by other types of new homes. Plus, as Australia’s population is aging, rapidly growing, and increasingly diverse, the options on the market need to reflect this. The hope is that by introducing development changes that streamline, simplify and reduce costs of alternative builds, such as a dual occupancy, more Australians will be able to live in a suitable home for their needs and budget (whether as a tenant or owner), faster than ever before. An outcome that Valley Homes fully supports.

What do these changes mean for landowners and developers?

There are a number of changes in this new code that will reduce approval times, provide new opportunities for a property previously judged ‘too small’ or ‘too narrow’, and give homeowners and developers clear design guides that can help them bypass any unnecessary red-tape. The code is specifically designed to address building and approval conditions for one and two-storey dual occupancies, manor houses and terraces.

1. Complying Approval in 20 days – with the new code in place, complying developments can be approved within 20 days, drastically reducing the amount of wait-time previously impacting building schedules, as well as financial arrangements. The NSW Planning & Environment website has more information on what specific building types will now qualify as a complying build.
2. Smaller homes are possible on smaller lots – two main size requirements have changed when it comes to a dual occupancy council approval, that is, frontage minimum has been reduced from 15–20 metres (depending on your local council) to 12 metres. Narrow blocks of land are no-longer excluded from these types of developments, just as long as the overall square-meterage adds up. In relation to land size, the average block of land size required by council is now only 500 square metres.
3. Clear design guidelines for faster approval – as part of this new housing code a detailed Low Rise Medium Density Housing Design Guide has been created. It outlines a number of aesthetic and functional design elements, which have been put together with the intention to maintain character of neighbourhoods and consistency of design. Two-storey height limits, as well as minimum and maximum plan requirements per dwelling-type, will ensure the complying approvals and subsequent builds provide quality housing solutions for Australians who are seeking alternatives to apartments and free-standing homes.

How is a dual occupancy defined in this new housing code?

As dual occupancies are a sub-set of multi-dwelling building options it is important to know what is exactly meant by dual occupancy, especially as this will ensure investors, developers, and homeowners are provided the correct advice and council approvals for that of a dual occupancy. Not to be confused with a granny flat or duplex, which come under different guidelines. So, as stated on page 4 of the NSW Government Planning and Environment’s Low Rise Medium Density Design Guide, dual occupancy is defined as having two types:

1. Dual occupancy (attached): 2 dwellings on one block of land that are attached to each other,
   but does not include a secondary dwelling.
2. Dual occupancy (detached): 2 detached dwellings on one block of land, but does not include a secondary dwelling.

What are your next steps to build a dual occupancy?

Talk to us. Taking advantage of these recent legislation changes will depend on whether your local council has a Local Environmental Plan (LEP) which already permits medium density developments. Part of our service to all home builders and developers is liaising with council and managing the entire approval process. This service includes preliminary site evaluations to ensure the intended land to be developed is suitable for a dual occupancy and that the proposal and plan complies with council requirements. Our team of Dual Occupancy experts know all about the local LEP guidelines and can give you all the answers you need to start your development journey with us.

For further information:

• Read the new code
• Download a PDF of the new Low Rise Medium Density Housing Guide

by Super Admin

DUPLEX DESIRES STILL STRONG

Talk in the property market has started to focus on the ‘property boom’ being a thing of the past. As any astute investor would know the property market has actually been gradually slowing for a few years now and this is because of a number of factors, namely bank lending changes and demands for new housing being met (because so many great new homes are being built!)

For investors who are looking for long-term projects the market is still in great shape and duplexes are still high in demand.

The reason duplexes have been relatively untouched in this slowing market is that they provide some of the best value investment options – that is duplex plans and pricing structures are attainable for a large portion of the investment builder market. Plus, depending on the land ownership status of the investor, such as when the property is already owned by the investor, knocking down a single standalone dwelling to build multiple modern homes with cleverly thought out duplex house plans means stalling land values aren’t a deterrent – the investment value still increases with the build. This is because the opportunities for investment yield can be met through other avenues, such as renting, which is an area of the market that is still very strong.

So what is the cost to build a duplex?

The cost to build a duplex is reliant on many factors, which might include land size and slope. The condition of the land also plays a part – does it need clearing, substantial levelling or retaining walls built to prepare for most of the standard duplex home designs? Also finding a suitable builder that has the experience, access to quality cost-effective materials and has the local contacts to keep costs down can also dramatically affect the final duplex build costs. Council requirements may also contribute to the overall budget and this will be determined by the location of your proposed duplex plans.

But to give you a solid indication of pricing beyond those outlying factors Valley Homes has a very transparent and open approach to displaying duplex plans and pricing. Our website has ten complete duplex house plans, which include the starting or base-level cost to build a duplex in each particular design range.

Let’s take a closer look at our duplex floor plans and pricing

Myall duplex house designs: This is the starting point for many first-time investment builders due to its competitively set base price. But just because it is great value doesn’t mean it lacks any of the features the market demands. In fact, the Myall’s duplex house plans offer a three bedroom, two bathroom, and one car space design per unit, cleverly set out to require just over 130sqm per unit. So it’s easy to see why this one is popular.

Depending on overall plans and investment goals, and taking into consideration whether your rental or selling target market requires a higher level of inclusions, then the duplex floor plans best suited to your investment might require a slightly higher cost to build a duplex. This might be because there will be a need for larger sized rooms, more living space, high-end finishes and fittings, more levels, and/or more car spaces. Our Sands duplex floor plans and our Bay Breeze duplex floor plans have proven very popular for that slightly higher end of the investment builder market.

Which buyers and renters are drawn to duplex living?

Duplex home designs are more than just attractive investment options because of how they provide opportunities for increased equity, sometimes double the equity, without doubling the investment outlay. Duplex homes are unique in that they are relatively low-risk investments, can secure strong financial returns, all while boasting broad market appeal; empty nesters, first-homebuyers, retirees and families are all drawn to the benefits of duplex designs. Plus, all of the categories listed above are drawn to duplexes as both renters and buyers – highlighting the strength duplex home designs have in today’s property market.

Finding the right builder for your investment

For a range of contemporary and competitive duplex plans and pricing Valley Homes is a Newcastle, Hunter Valley, Maitland and beyond duplex specialist. Our team of expert duplex designers and construction supervisors can build highly desirable duplexes starting at very cost-effective base prices and we are excited to discuss specific land requirements, council regulations and ideal duplex floor plans to set in motion any savvy investor’s duplex investment goals. Valley Homes can manage as much or as little of the planning process as necessary. Getting in touch is easy, simply call us on 02 49341400 or email us at sales@valleyhomes.com.au

Duplex inspiration from our gallery - SEE MORE

RELATED DUPLEX ARTICLES

Liveable lovable homes for your retirement: duplexes and dual occupancy

Duplexes are built for Hunter Valley investors

Building a duplex: the upsides to downsizing

by Super Admin

MULTI-UNIT DEVELOPMENTS – ON THE RISE AS NEWCASTLE EXPANDS

Newcastle region has seen steady growth for some time with many people attracted to the lifestyle opportunities, growing local business sector, easy access to Sydney businesses, close proximity to the Hunter Valley wine region, as well as being home to the University of Newcastle. The families, professionals, businesses, and students choosing to call the region home have been instrumental in the subsequent increase in medium density housing demands and the building boom, which investors and developers are actively capitalising on.

Newcastle’s current building landscape consists of a mix of high-rise office blocks, high-density living options, medium density multi-unit housing developments, plus infrastructure projects. Our Sales Manager, Kaye Purdon, recently reflected on the changing face of the city and its surrounds, “Newcastle City is booming with the development of Newcastle wharf, the light rail and nature corridor, and University of Newcastle City Campus ‘NewSpace’ opening earlier this year. Multiple cranes dot the skyline at any one time and a combination of high and medium density housing options are providing home buyers a great array of building and purchasing options.”

One of the most exciting attributes of this increase in development investment is that the boom extends beyond the city centre. Areas around Newcastle are also benefitting. Many multi-unit developments in the surrounding suburbs of the University of Newcastle’s Callaghan campus, namely Birmingham Gardens, Jesmond and Wallsend, are providing more affordable multi-unit options with great rental opportunities for University students, as well as young professionals wanting affordable housing with the aim to commute into the city centre. Plus, Lake Macquarie is also undergoing great change. The building boom is definitely widespread across the region.

Multi-unit developments are also now more frequently built in areas traditionally associated with free-standing homes – a trend which is opening up new opportunities for investors, developers, builders, as well as home owners. Valley Homes has recently worked on projects in Jesmond, Warners Bay and Maitland, as well as substantial multi-housing estates, including Thornton’s Wirraway Estate (Defence Housing). This shift in the building and housing market is in direct response to the need for more affordable housing developments in regional areas, particularly as land is at a premium. It’s a part of the Valley Homes’ service that we really pride ourselves on: contributing to providing affordable housing to the Newcastle region.

Many of the multi-unit projects Valley Homes has built are for repeat clients. As Contract Manager, Jane Craig, agreed schedules, budgets and scope of works are the cornerstone of maintaining strong client relationships that keep clients coming back for more.

For example, a solid client relationship was established with ABL Property on the Jesmond multi-unit development, which featured 16 single-storey villas and four two-bedroom double-storey townhouses. “We delivered the end product well within the contract period to ensure the client was able to meet their scheduled handover and settlement of the properties to the purchaser of the development. This meant working extremely closely with the developer during the end stage of construction, including meeting all requirements of the certification and issuing of the Occupation Certificate and going above and beyond on delivery.”

Beyond the successful outcome of this recent Jesmond development, Valley Homes has built hundreds of affordable medium-density homes all across the Newcastle region. Recently Valley Homes completed a 25-unit affordable housing project for the Catholic Diocese of Newcastle/Maitland in Mount Hutton, we are up to Stage 4 (totalling 130 dwellings) for a Defence Housing project at Thornton, and several multi-unit developments in Wallsend and Birmingham Gardens. We will also commence construction later this year on an 8-unit development in East Maitland.

Our team has delivered many diverse and contemporary multi-unit builds – up to 130 in a single project – and we pride ourselves on the fact that the finished homes have great appeal and character, are built to the highest building standards, while capitalising on smart material choices and streamlined procedures. Single-storey villas and double-storey townhouses are our most popular building options, however the finished design comes down to the unique site affordances, council regulations, as well as the developer’s budget and investment goals.

Looking for a multi-unit developer? Get in touch today

Need ideas? Browse our Gallery of recent developments

Our team of multi-unit development specialists are happy to discuss any upcoming projects, design trends, affordable building options, as well as budgets and timeframes to give any prospective multi-unit developer all of the information they need to make an informed choice – contact us at sales@valleyhomes.com.au or phone 02 4934 1400.

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by Super Admin