It is no secret that investing in properties is a fantastic addition to any investment portfolio. While the most common way of investing in properties is buying and selling homes, savvy investors with a little more capital may be interested in acquiring land for sale in Brisbane and having a home constructed. If this sounds like something you would prefer over purchasing an existing home, then you may also want to consider building a duplex on top of the land you purchase.
Having a duplex constructed is a fantastic investment because it creates equity rather quickly with a high ROI. Additionally, duplexes also come with lower stamp duties, insurance costs, and the like. Of course, there’s also the fact that you essentially have two different properties that do not require subdivision.
If you are interested in purchasing land for sale in order to build a duplex as an investment, there are a few things you must consider from purchasing the land down to construction. Before proceeding, make sure you keep the following tips in mind:
Work with a trusted land brokerage
First off, you’ll need to find the right plot of land for your duplex. In such cases, it is better to work with a trusted and experienced land brokerage like Lion Land Marketing. These professionals are more in touch with the nuances of purchasing land as opposed to simply buying existing homes. They can also help you with the paperwork necessary to gain a permit allowing you to have a duplex built.
Know whether you want to sell or rent out the duplex
Duplexes provide you with a lot of flexibility in terms of cashing in your investment. You can easily rent out both units or choose to rent one out and sell the other–just make sure that you have a clear idea of what you plan to do once the duplex is finished. This will give you a better idea of how much of a return you’ll actually be getting back from your investment. In many cases, renting out both units tends to yield about 6.5 percent.
Find a reputable builder with experience in building duplexes
Lastly, it’s a good idea to find a home builder that has experience in constructing duplexes. Although it may look simple, designing and constructing a duplex can be difficult. Choosing a builder with little experience may end up with you needing to put more money into the project or even construction delays. Try asking your land broker if he or she can provide you with a shortlist of recommended builders.
Developing A Duplex, Two Houses, Two Rents, Two Sales: Too Good To Be True?, yourinvestmentpropertymag.com
Building a duplex to create equity, smartpropertyinvestment.com.au