Bricks and mortar has always been the most popular investment strategy across Australia. The purchase, lease and sale of property assets is the wealth creation strategy that has been passed through generations in Australia.
However, as house prices have increased, finding gems to flip for profit is becoming a little more challenging.
Savvy investors have seen the benefits of building a duplex to double their property portfolio on a single block of land. On completion of the build, you can then take some equity out of that property and go and buy another property immediately. Alternatively, If you’re after immediate cash flow, a duplex provides a dual income for the cost of a single piece of land.
Duplex home is one of the property world’s quiet achievers, often able to produce strong value growth and healthy rental yields for a much lower price than its neighbouring stand-alone houses.
5 things to consider before building a duplex for investment:
1. Instant cash on cash return! A duplex is a positively geared investment with the potential to create equity in a highly calculated way. It is both a high growth and high yield investment.
2. Suitable for someone who is time-poor and wants to invest strategically.
3. It is an equity boosting strategy that creates the ability to fast track your wealth, so it’s also plausible for retirees.
4. You have the option to rent the duplex out and achieve an ongoing high interest return and two income streams.
5. Only certain councils will allow duplexes. NSW councils are more favourable to duplexes because of population growth the housing shortage.
Many successful full-time property investors tell of their first property being a duplex, living in one while the income from renting the other enabled them to pay off the mortgage quickly and buy a second investment property quickly.
Building a duplex is a great way to put yourself in a position to buy more property and to grow your property portfolio two-fold. Don’t wait 5 years to see results... our clients are replacing and doubling their income every single year.