5 things you should know about Duplex developments

July 7 2016
Duplex development

Exploring the Investment Opportunities in a Duplex Development.

If you’re new to developing and concerned about the affordability of your first development, then building a duplex development is often the solution. Duplex developments are a great way for many to experience their first development or investment venture with minimised risk.

Here are the 5 things you should know:

1. Duplex designs are flexible

Duplex developments can be built in two configurations – side by side or house behind house, depending on the shape, size and topography of the site. There are no rules to how a duplex is designed so there is some flexibility in the designs and cost. You can essentially build what you want.

Duplex house behind house

Duplex Development – House behind house

Duplex side by side

Duplex Development – Side by side

2. Duplexes aren’t just for infill areas

It’s true that many developers will look for what they believe is a sound investment opportunity, within an established area. Generally within established areas the initial house will require demolition and the services to the block will need to be upgraded to accommodate two dwellings.  This does add additional cost to the development, with the costs of demolishing and removing the existing residence.

The most attractive element of developing a duplex in an infill, established area, is the opportunity for the developer to build a brand new home, to become their primary residence, and rent out or sell the other home.

Infill is not the only answer though, and many land subdivisions have now introduced vacant land with duplex development opportunities. With duplex developments becoming more popular as affordability has been challenged, it makes sense for these companies to create opportunities for this type of construction.

The cost of purchasing a duplex block in a subdivision is generally a lot cheaper than purchasing in an established area. This will assist in affordability, allowing developers to create product that can be sold or rented on the market at a more economical price.

3. What are the investment opportunities of a duplex development?

Improving your land by either building two dwellings, or knocking down an existing house and replacing it with two dwellings generally will increase the value of the overall project.

Establishing the outcome of the project before you start is essential to achieving success. As already pointed out, there are several possibilities; sell one and live in one, sell one and rent one, or rent both or sell both.

The design and finish of the house should be considered when establishing the outcomes of the project.

4. If you are going to rent, build for your tenant

If the outcome of your duplex development is to rent one or both of the homes, you will need to establish what area your potential tenant is looking for and what rental income is possible. This will establish how the unit will be designed

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