Duplex Properties

Duplex properties are becoming a more popular and important option for those who are looking to own multiple properties while saving thousands in construction, land purchase costs and stamp duty. 

They are also a great choice for investors looking to maximise the rental yield their properties generate, and those who want some additional flexibility from their investments. 

Unlike dual key properties, which are effectively 2 dwellings on a single title, duplex properties can either be strata-titled or Torrens titled. This means that each side can be sold separately. 

This allows the owner to capitalise on the capital growth generated through the property without the need to divest their entire holding.

High Set Duplex Construction

layout can be

Highly Versatile

Duplexes are very versatile investment properties from a layout perspective with dwellings generally 3 x 3 or 3 x 2 bedrooms, single or double story. 

In saying that there are a few things we recommend you keep in mind when inquiring about a duplex. Keep reading to find out more!

you will need higher

Starting capital

You’re generally going to need to be someone with higher starting capital and stronger income if you want to invest in a duplex. 

There are fantastic economies of scale benefits available when building a duplex, which you can enable you to earn significant amount of instant equity once your project is complete. 

On the flip side however, putting 2 of everything in your new investment does come at a cost and therefore only certain types of investors will have access to the funds necessary to engage in this type of purchase.

Cost of Building a Duplex
Duplex Valuations

Potential for low initial

Valuations

Bank valuations can come in lower than expected, plain and simple. This is because until the strata titling or subdivision actually occurs (once the build is completed), valuation firms will likely view your two investment properties as a single dwelling. 

This issue can be compounded by the fact that there isn’t a large amount of duplex sales around for the valuer to base their assumptions on, meaning they aren’t relying on the most valid data. 

This can be frustrating, so again if you have trouble on the capital or equity front, you might be interested in talking to us about dual key, or single family homes instead.

THey come in Small

Supply

Not every block will be capable of supporting  duplex properties, and not every new housing estate will necessarily allow duplexes to be built if it doesn’t fit their covenant requirements. 

When someone engages us to a put duplex development together for them we go to great lengths to find the right block to suit their requirements. We are usually facing competition for the block as it will be a unique piece of stock that other savvy investors are looking to capitalise on. 

This means that you would generally need to make a decision faster than normal and an expression of interest would need to be provided. Otherwise we could miss the block and be  forced to wait months for something else suitable to come up in the target investment area. This will prolonging the overall development process.

Housing Estate
Estimated time of build

24 week

Build Time

They do generally take a little bit longer to build than a standard single dwelling. Once again being larger than a standard property, requiring additional approvals, needing to have two of everything installed etc. all adds to the time till completion. 

Don’t worry, the wait will be worth it once the rent starts rolling in!

Join hundreds of satisfied customers

If you believe that a duplex is the type of investment property that will suit you then click on the button below and book in for a call with our team. On a quick phone call we can help determine your current equity position, borrowing capacity, and we can start to discuss potential loan structuring. We will also help you in sourcing both the land and build that will support a duplex and will deliver on your expectations over the long run.