DUPLEX IN DEMAND: THE ATTRACTION IN NSW
The urbanisation of many cities and towns in New South Wales has seen the demand for duplexes increase – making duplexes a profitable investment option with strong returns and plenty of market appeal.
What is a duplex?
A duplex is basically two properties, which have been built on one block of land. They typically share at least one common wall and fence, but they have no shared entrances or rooms etc. They are the happy medium between having a large sprawling block that requires maintenance and the confined space of an apartment – that is you have adequate outdoor space for entertaining and to enjoy your own piece of private sunshine, without having to spend weekends mowing! Which is a bonus not only for those living in the property, but also for investors who choose to retain control of property maintenance. Most modern duplexes have three bedrooms or greater, include open plan living and entertaining areas, two bathrooms and a garage. So there is really no compromise when it comes to space and liveability.
Flexibility for investors
Because of the flexibility available with a duplex they often have broad market appeal. The choice to become owner-occupiers has proven to be a popular option for investors, wherein they live in one half of the duplex and then either sell or rent the other half. Alternatively, depending on their investment plan, both properties can be rented to potentially double the rental income for what is essentially a single investment property. Or some investors choose to sell both halves of the duplex, individually or as a package, to make a reasonable return quickly to then move onto their next investment project. Plus, the great news is that duplexes tend to hold their value quite well depending on the location and quality of the build.
Many markets are drawn to duplex living
There are many reasons for the increase in popularity for duplexes in New South Wales. Land shortages have created a situation where people have started to re-evaluate their property choices. The trend to live away from city centres on a large block has now been superseded by people wanting a shorter commute to work, good proximity to facilities, all with lower maintenance living. A marked improvement in design innovation has also meant duplexes now have greater curb-side appeal, floor plans have adopted modern, space maximising techniques, and they boast the latest inclusions and energy efficiencies. Empty nesters, first-homebuyers and even families with teenagers are all drawn to living in duplexes.
If you would like to know more about our range of designs, which are suitable to a host of block sizes and types, then talk to our team of duplex specialists.
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DUAL OCCUPANCY PROPERTY - SIMPLIFIED
As inner-city land, particularly around Newcastle and Maitland, becomes more valuable the demand for dual occupancies are increasing. Dual occupancy is essentially a development where you subdivide a block of land, creating two attached or freestanding homes. The appealing aspect about a dual occupancy investment is that it usually doesn’t cost much more to build two average sized properties, than building a single large home – and by using a single block to do it means equity is created by essentially halving the land cost. It is a great way to create value, boost your income or even improve housing affordability. Dual occupancy properties are particularly appealing to three groups of buyers:
- Investors: who see the potential to turn a reasonable profit by building two homes on a subdivided block and selling or renting both.
- Owner-occupiers: who own a large block and have the space and means to build a second home on the land. Often they are rented for an ongoing income, or sold to boost their retirement nest egg.
- First home buyers: who either join together with family or friends to buy a large block to subdivide between them, essentially halving their land price.
Here’s what to look for when buying a new block to subdivide:
If you are buying a block with the intent to subdivide one of the most sought-after options is a wide street frontage. A wide block allows the new properties to stand side-by-side with separate driveways, which is very appealing to buyers if you wish to on-sell one or both properties. Another popular option is a corner block, which creates the opportunity for the driveways to be on separate streets. Whatever block style / size you are seeking, make sure you research the area and check with local council regulations to ensure it is zoned to allow dual occupancy dwellings.
Already own a large block of land?
Subdividing a block of land you already own is a relatively low risk investment. It creates equity in your land, plus it means you can yield a rental income. Or you can sell the new property to either help pay off your mortgage or to put towards your retirement plans. Many owner-occupiers may be situated on large, narrow blocks. While these may not be the first choice for investors they can usually accommodate a battle-axe solution – with the second property sitting behind the front / existing property. The only change to the frontage is often a second driveway visible from the street.
Planning to rent or sell – know your market
Before you do anything it pays to get to know the local market. Talk to experienced dual occupancy property developers like our team at Valley Homes who manage the entire process, including surveying, planning and liaising with council. It is important to speak to your financial lender and know what fees you are up for including stamp duty and land rates. Also speak to your local real estate agents for advice on rental rates and tenant agreements. This will help you gauge the types of properties you can build, the return you can achieve from your investment and whether or not you will be better off selling or renting your second property.
CHOOSING THE RIGHT BUILDER FOR YOUR HOME OR INVESTMENT
Finding the right builder is key to the success of your home or investment construction project in Maitland and the Hunter area. It’s worth doing your research on the company and the builder that you are planning to hire. Deciding who should build your home is an important decision. Making the wrong choice could see your construction project suffer in delays, costs and stress. Here are some top questions to ask to guide you and make the right decision when choosing a builder.
- How long has the builder been operating?
Ask the builders that you are planning to hire some simple questions such as;
- How long have they been in the construction business?
- If the builder owns the company? Perform the necessary checks with the relevant authorities.
These simple questions and performing background checks will paint a better picture of the construction professional you’re looking to hire.
- Does the company have a permanent business address?
Find out the exact location of the building company’s office and take the time to visit it to get an impression of how professional their business is. It’s also important to know their location if you ever need to drop in during the construction process. A verified trading and registered office address also tends to reflect a company that is more reputable.
- Have you read any client testimonials?
Experiences of other customers are always a great reference point for making your decision. If possible, ask your builder to put you in touch with two past clients and ideally see them and their project for yourself. When you talk to the clients extract as much information as possible and ask them about their experiences with the builder.
- Are you getting a detailed quotation?
A good indication of how reputable a builder is can be discovered by the kind of quotation that they provide. A thorough and detailed construction estimate means that every small detail is accounted for and provides complete transparency. Quotations that are quick, short and lacking in detail could mean that the builder is inexperienced or less reputable.
- Are you getting everything in writing?
Remember, you should only proceed with your home or investment construction project when the price is fixed and you get a well-written contract from your builder. Get all details about the build in writing. This will help you for future reference with issues that might arise during construction.
Follow these tips to guide your decision with which builder to appoint for your property or investment project in the Maitland and the Hunter area.
PLANNING TO BUILD A MULTI-UNIT DEVELOPMENT
Developing a property into a multi-unit development can be a profitable decision but the process of taking the project from concept to execution is complex and multifaceted. Multi-unit developments require meticulous planning and a careful evaluation of all factors related to the development’s construction, maintenance and overall impact on the surrounding area.
The first step in planning a residential or commercial multi-unit development is performing a comprehensive assessment of the property’s suitability for the project.
While the Council reviews an application, it also informs local residents of the planned development and makes much of the information involved available for public review. This is a critical stage as it is here that many inadequately prepared proposals fall through.
Even the most minor objection from the public or the Council itself can result in substantial delays in a development plan or even the outright rejection of the proposal and although an appeal process is available, pursuing an appeal frequently represents an unexpected drain on project resources. For this reason it is essential that an application to develop a multi-unit residential space be polished, thorough and flexible from the outset.
A professional development planning firm can provide a land owner tremendous assistance in navigating the complex path to multi-unit development, offering guidance on the best ways to ensure a speedy approval the first time. Planning consultants use their experience in the field to craft detailed applications that make the benefits of development and construction clear to a community to achieve approvals much more quickly.
The preparation of your proposal and scope of your project can also affect the number of units that can be built on a property. Considerations include the orientation of the site relative to the sun, parking solutions, sustainability measures and land slope. Only a professional can properly evaluate these aspects of a property to fine-tune a development plan for the best and most profitable outcome.
Planning a multi-unit development is an extremely technical affair and failure to account for all the factors involved is sure to cripple a project before it ever gets off the ground. Large-scale development requires large-scale planning and the painstaking nature of the process makes it a formidable challenge for even the most experienced developers. Trusting a professional development and planning builder such as Valley Homes can save land-owners in Newcastle and the Hunter Valley years of red tape and can be the most important resource needed for a multi-unit development project.
TIPS FOR BUILDING A DUAL OCCUPANCY PROPERTY OR DUPLEX
When planning to build a dual occupancy or duplex property it is important to enlist a building company with a proven track record at designing and constructing this type of development. Council requirements vary for building dual occupancies and duplexes so it is important to confirm with your builder that 2 units can be built on your land.
Some important points to keep in mind when planning to build a dual occupancy or duplex property:
- Minimum lot size for dual occupancies or duplexes
- The northerly aspect and slope of the land
- Draining stormwater from the site
- Subdivision requirements
- Recent duplex sales in the area
- If you are planning to rent out the duplex, it is important to appoint the right property managing agent to maximise rental yields and find the right tenants