For many Australians, building a duplex remains one of the biggest investments they’ll ever make. Why? Well, they might just end up paying for their finished built duplex for years to come if they use a mortgage. Furthermore, once they’ve built their duplex, selling it can prove challenging, costly and very time-consuming. This is why it’s important to be smart about the process of investing in a duplex. One way you can go about being smart with your investment is timing. In particular, you want to make sure you are making your investment at the right time. So when is the right time?
The Right Time To Make Your Duplex Investment
If you are investing in building a duplex, you need to decide when it’s the right time to do so. Luckily, there are a few indicators that can help you do just that. Currently, one common factor that determines when to invest is the year. You want to invest when the market is favourable to you. You can as well build or invest when interests are low. This way, you’ll be able to get a favourable deal with your mortgage.
During a property price drop is another great time to invest in duplexes. If you choose to build or invest during this time, it is important to focus on two key areas. Doing so puts you in a better position to fully profit from your investment. These two are;
- The Period A Duplex Takes To Sell
- Price Trends
The Period Duplexes Takes To Sell
Property price drops sometimes signals a buyer’s market. In such a market, your unit is likely to stay in the market for some time. In some cases, your finished build duplex will sit on the market for years. Hence, you should prepare yourself for this both financially and mentally when making your investment during this time.
You might as well be forced to sell your unit at a low price. This is something to keep in mind as well. It’s good to note however that some choose to hold on to their property till demand starts to increase. In other words, they hold on until there is a seller’s market.
When choosing to invest during a Melbourne property price drop, it is important to focus on price trends. In particular, you want to look at historical sales trends. This will give you an indication of how much your investment will bring in. Furthermore, it’ll give you a clearer picture as to what to expect from buyers as well as the market. This information further helps you estimate the return your investment will make.