When it comes to building a new home, there are a few options available, each comes with its own positives and negatives, but there’s one option out there that has several advantages for prospective homeowners, and that’s a Duplex.
Whether you’re looking at maximising the potential investment of your existing block, exploring the possibility of dual income, and even accommodating your extended family, a duplex living arrangement offers a unique set of benefits that may be applicable to your situation.
It’s the flexibility that makes a duplex so appealing, and here we will explore in more details why it can be beneficial to you.
Capitalise on your big block
Building a duplex can be a great way to capitalise on your existing big block of land. A lot of older homes, in established areas, sit on larger properties. This opens up the opportunity to knock down the old home which resides on only a small portion, and fully utilise the whole property.
Provided your property meets the relevant necessary council standards (i.e. square metre coverage, width of block etc.), the opportunity to build multiple dwellings can achieve significant improvement on your home investment “with over 30 years of industry knowledge, and a strong focus on building duplexes, our team has the experience to creatively utilize the maximum potential of the block, whilst running the appropriate checks to determine if a duplex will meet statutory requirements to achieve the goal our customers are looking to capitalise on” explains Kristina, Vogue General Manager.
This is especially attractive to those wishing to downsize and capitalise on the land, while still living in the community they have grown to love. Kristina says “over time, a lot of blocks that are larger, become too overwhelming to manage or the owner’s priorities change. This opens up the opportunity to knock down the current home, create an income and stay where you live, which is particularly attractive for empty-nesters or retirees.”
Whether you become an owner occupier, or rent out both dwellings, you’ll get a higher square-metre rate out of your investment, resulting in a higher yield, and the maximum potential use of your block of land.
Owning a duplex with multiple dwellings gives you greater control on your ability to earn a dual income on a single land title.
You have the option to; rent out both duplexes and receive two incomes, or live in one while you rent out the other. Either way, you’re able to receive an additional income stream providing greater assistance in meeting your mortgage repayments.
Additionally an owner occupier duplex arrangement offers a number of additional tax benefits. You’ll be able to claim deductions for expenses incurred on the rental half and even on any shared expenses. We suggest speaking with your accountant to get further details and how they apply to your particular circumstances.
Dual Family Living
Duplexes offer additional flexibility in family living and even allow you to future proof your family living arrangements.
By having two separate dwellings, you can live in one home, and have your relatives live in the other. “Family living circumstances have greatly changed over the past 5- 10 years. We have a lot of multicultural families living in Australia who are bringing family members from overseas to live with them or are used to having multi-generations living under the same roof. A duplex offers the perfect environment for this type of living and offers both families some privacy whilst having the support of their relatives’ next door.” explains Kristina.
“We are also seeing kids live at home for a lot longer than they used to. We see mid-20s still living at home so they can save for their first home, while their parents help support them. A duplex offers the flexibility of parents assisting their kids, while they learn to establish themselves outside the family home”.
Whichever way you look at it, building a duplex offers great flexibility to suit your particular family circumstances.
Excellent entry for a first time investor
A duplex represents a solid investment and is an excellent entry for a first time investor. It can produce strong value growth and high rental yields for a lower price than a detached house.
By choosing to build a duplex with multiple dwellings you are essentially getting two homes for a price that may not be much higher than one. With only one block of land for two homes, the total price of owning two income producing properties is reduced.
Building a duplex offers a number of tangible benefits when compared to other forms of housing.
While these benefits are attractive there are a few things to consider. You need to consider all the costs associated with this type of development to ensure it is feasible to achieve your desired outcome.
“It is so important to get the right advice up front when building a duplex.” tells Kristina. “You need to speak to the right people and get the right guidance to ensure whatever you are hoping to achieve will come to fruition. You need to make sure that your objectives are balanced with what is realistically possible, and this needs to be considered from not only a price point but what is allowable by council.”
“Here at Vogue Homes we have experienced team members that have a strong focus on dealing with duplexes and they are dedicated to helping people from the get-go. When we understand what the customer wants, being involved from the beginning makes it a lot easier to provide the right guidance to our customers, and ensures they don’t get too far along which can lead to disappointment if what they were chasing is not allowable or is too costly.” Kristina says.
We’ve been building Duplexes throughout Sydney for more than 35 years and have extensive experience working with a variety of councils.. However we always recommend you get your own financial and professional advice before committing to any financial decisions.
We offer a complementary site assessment of your property to assess duplex suitability, so why not contact us today, and let’s get the process started.