In the current financial and housing markets it is very difficult to predict how a location, suburb or even an entire state will perform over the next 12 to 24 months. This makes property investment more difficult as most investors are relying on capital growth and equity to see a return on their property investments and portfolio.
At DUPLEX INVEST we strongly believe in, and invest huge amounts of time and due diligence, into researching the locations that we believe will show strong capital growth moving forward. However, this is not where our clients make a majority of their profits.
We dont predict equity we create it!
The best and most reliable way to see a profit on any property investment is not to rely just on property values going up, but to create it yourself through a small and easy to manage development. Keeping the project small (say two units – duplex) will mean you can use conventional finance and will only require a 10% deposit.
You can have as little as a 5% deposit by taking advantage of our Deposit Assist Program.
To Learn more about this program –CLICK HERE
Simply put – When you take a single piece of land, build two properties on it and then subdivide you are almost guaranteed to see a profit when done correctly it will be a significant one!
In most cases our clients create enough equity to be able to move onto another project almost immediately after completion we have some clients who are up to their third project with us, after just a few years.
Not surprisingly, this type of strategy is extremely popular and as such suitable land is very hard to find. On top of that a great deal of development knowledge is required to take any project from concept to completion successfully.
As per the above we are the DUPLEX Specialists. We have years of experience in dealing with Developers, Town Planners, Surveyors, Builders, Banks, Lenders and Property Valuers.
We do all the hard work for you at no charge!
Our Company Director, Paul Bieg, has provided a step-by-step guide outlining how we can help you take your property portfolio to the next level.
A Typical DUPLEX Project.
STEP ONE – LAND ACQUISITION
- Short-list suitable regions, based on our research and due diligence. This can either be in Capital Cities, or in major regional centres. As the market is always changing, so are the locations of our projects.
- Work with our developers and trusted property agents inside those regions for access to new land releases and upcoming developments.
- Check for suitable vacant blocks in established areas, especially among quality owner-occupied homes that drive market value these can be great opportunities for capital growth.
- Check that council zoning allows duplex development and what the requirement to comply are we use a Town Planner for this.
- Check for easements and covenants. If there are any covenants against building duplexes, we might be able to get them removed.
- Gain developer approval for a duplex they have to sign off on the design in most cases.
- Inspect prospective blocks to assess the location and surrounding area.
- Short-list the most suitable blocks and negotiate the lowest possible purchase price (often under the asking price).
- Arrange soil tests. This is to be able to offer a fixed price build contract and ensure that you dont incur any unforeseen costs during construction.
STEP TWO DESIGN PROCESS
- Work with our team of draft people and architects to create a custom design to make the most of land and surrounding area.
- Work with local selling agents to determine what the market is looking for.
- Ensure the design will be approved for a duplex at the time of council application we use a Town Planner and Certifier for this.
- Create the perfect colour selection to suit the surrounding houses and be attractive to a wide percentage of the population future buyers and tenants.
STEP THREE BUILDER SELECTION AND PRICING
- Select a builder from one of our trusted long-term builders or a local builder we fully research and reference check all new builders we take on.
- Negotiate the lowest possible construction price. The volume of work we give our builders enables us to negotiate construction contracts well below normal market prices. It also keeps them working to a high standard as they want to continue working with DUPLEX INVEST.
- Ensure that the contract price is fixed and fully turnkey everything is included, no hidden or additional costs.
- Ensure the contract includes the maximum construction completion date, penalties to the builder for delays, a state approved building warranty, and a warranty check-up after six months to fix any minor issues.
- NOTE Included in the contract is, council contributions, subdivision and strata. This normally costs you up to $50,000 and is paid separately.
STEP FOUR DA and BA.
- Secure the full Development Approval (DA) and full Building Approval (BA)
- If you were to try and undertake this yourself it usually takes 12 months, but due to our experience and using local Town Planners and Certifiers we can do this in less than half the time.
STEP FIVE CONSTRUCTION.
- Provide full Project Management throughout construction through to completion and handover.
- Maintain weekly contact with the onsite manager to keep up to date with progress and assess and insure building timelines are maintained.
- Provide detailed updates upon request and also at each progress claim of construction (5 minimum) including photos.
- Make regular site visits to inspect progress and keep everything on track.
- Arrange handover of the finished duplex, including final inspection and approval.
STEP SIX – AFTER HANDOVER
- Undertake the complicated process of subdivision and strata titling this cost is included in the build price and can be as high as $50,000.
- Arrange property management if one or both units will be leased.
- Arrange for the sale of the property if one or both units will be sold.
- Assist with insurance and depreciation report (if requested).
- Assist with refinancing (if requested) to access equity if the client wants to purchase another property.
Example Project 1
Location Hervey Bay QLD
Design DUPLEX 3 bed, 2 bath, Single garage per side
Build Size 300m2
Land Size 800m2
Sales Appraisal $350,000 per side = $120,000 development profit
Currently rented $335 per side = 6.3% return
Example Project 2
Location Pt Macquarie NSW
Design Side 1 DUPLEX 4 bed, 2 bath, Single garage
Side 2 DUPLEX 2 bed, 1 bath, Single garage
Build Size 245m2
Land Size 540m2
Sales Appraisal $880,000 = $259,000 development profit
Rental Appraisal $460 side 1 + $315 side 2 = 6.5% return
Example Project 3
Location Pt Macquarie NSW
Design DUPLEX 3 bed, 2 bath, 2ndliving area, single garage per side
Build Size 335m2
Land Size 500m2
Sales Appraisal $500,000 per side = $200,000 development profit
Rental Appraisal $500 per side = 6.5% return