Why You Should Get Started In Real Estate Investment this 2021
Why You Should Get Started in Real Estate this Year Should you get started in Real Estate investment in 2021? The short answer to this
Duplex properties have been a popular type of property investment for many years. Most LGA’s allow them, although not all do.
The main advantage of a Duplex is that it can be Strata Titled (split into two titles) after construction is completed. Strata Titling is not mandatory and some buyers choose not to, so as they only incur one set of Council rates. If the decision to Strata Title is made, a body corporate is formed to manage the common property and public liability insurance. The common property areas can often be minimised thus reducing some management issues etc. Even after a property is Strata Titled, in some circumstances it is possible to subsequently have the Body Corporate dissolved if the owners of both units agree.
Duplexes are commonly single storey or two storey. Depending on zoning and density allowances, they could even be 3 or 4 storey, with a lift and possibly a basement carpark.
A Duplex property is commonly the same floor plan (mirror reversed) on both sides although this is not mandatory, they are often different, particularly on corner or unusual shaped blocks of land. Some LGA’s have rules whereby a set number of bedrooms are allowed if a site is below the standard size required by Council. This could be an uneven number, so for example a 3 bedroom + 2 bedroom may be required.
It can sometimes be possible to build a Duplex as two separate buildings, depending on the LGA and site size, shape and allowable site coverage. A fire wall is required where the two units are adjoined.
Each unit is allowed to have its own egress (driveway crossover) so there is no requirement for the garages to be adjoined and in fact they could be located on different streets on a corner block.
Generate capital uplift after Strata Titling
Sell one unit to reduce debt on the one they are keeping
Keep both units to generate income
Use gearing benefits to assist in cashflow to support the investment
Use the cashflow to pay down debts
Generate two rents from one block of land
Keep one unit and sell one unit
Keep one unit and rent one unit to tenants
Accommodate other family members
Why You Should Get Started in Real Estate this Year Should you get started in Real Estate investment in 2021? The short answer to this
Duplex properties offer a great opportunity for instant equity uplift. Because duplexes can be strata-titled the halves can be sold off individually. Sometimes for more than the cost of the project, thus creating instant equity uplift.
In this New Property Australia Case Study a couple were seeking their first investment property and required a solution that would supply instant equity uplift.
In this New Property Australia Case Study a married couple were looking for an investment opportunity that would supply some capital uplift as well as a good rental return.
In this New Property Australia Case Study these clients were seeking a property that could supply equity up lift in the short term.
The team at New Property Australia is readily available to discuss your property investment goals and what the next steps in your property investment journey should be.
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