Hi all its me again. Ok so my story goes like this. I have been in contact with an agent who has just listed 2×2 bedroom duplexes for sale. The combined rent seems to be more than what an average house would rent for, yet these duplexes are selling at the same price as houses…..
Can anyone enlighten me as to why this might be the case. Is there something about duplexes that i dont know about. She advises me that i should get in early as they go like hotcakes…but that could just be real estate talk. I dont want to be too eager but this seems like a really good deal. So im asking you out there for any helpful info or advise about owning duplexes. Any hidden traps etc etc. Thanks guys.[biggrin]Originally posted by amber_jag:Is there something about duplexes that i dont know about. She advises me that i should get in early as they go like hotcakes…but that could just be real estate talk. I dont want to be too eager but this seems like a really good deal…. Any hidden traps etc etc. Thanks guys.[biggrin]
Hi Amber_jag
By the way, do you own a Jag? Mine is an awesome Pearl Grey 1988 XJ6.
Re duplexes, please consider building your own duplex pair, it’s dead easy or at the very least you’ll embark on a steep learning curve. There are heaps of people on this Forum who’ve done it. My wife and I own a number of duplexes built by other people, and while they ended up being good investments, they took 12 years before they doubled in capital value. If we’d had the guts to build them ourselves 12 years ago, rather than pay the profit to some other investor, we’d have doubled our investment much, much sooner because we’d make our $$ on wholesale price, not retail
One of the secrets to making speedy capital gains is to get cheap (well below market value), blocks of land and build brand new brick duplexes or a brick house on it. So how to find cheap blocks of land in the city? Here in regional Qld, there are a FEW houses within 3-5 kms of our Post Office built on SEWERED (very important)1/2 acre blocks. For example, one street away from our home we just missed out on buying a beauitful old weatherboard house on 1/2 acre for $165,000. Now here’s the trick: If we cut off 1/4 acre, we could still re-sell the old house on 1/4 acre for $155,000. So, minus costs, we’d get a 1/4 acre block of land for $10,000!!! Allow approximately $15,000 – $20,000 for subdivision and other council costs, and the fully developed block will only cost us $25,000-$30,000. Here where we live, the minimum price for a sewered 1/4 acre block on a bitumin road so close to the Post Office is $80,000 – $95,000. That’s a $55,000 – $60,000 INCREASE IN YOUR NET WORTH/EQUITY BEFORE YOU’VE EVEN STARTED TO BUILD ON IT. Now you register as an owner builder and do your own sub-contracting or get a builder to build a new brick house or a couple of duplex units on it which you might use as long-term rentals, and your property portfolio is off and running with a real head start.
Check the “Subdivision” posts in the past month on this Forum. There’s so much expertise andinformation re subdivision here, so if you know of any such 1/2 acre blocks near your home (and I’d encourage you to think locally, get to know your local ared intimately).
If you just ask the question, you’ll easily link up with other forumites in your local area who run their own local property investing group. These groups meet regularly to swap tips, ideas, resources etc etc
By the way, ignore the agent’s spiel, because it’s the proverbial CR_ _.
Cheers
Greg F
GregF,
Hi,
I have aquestion on the comment you made,
“Now you register as an owner builder and do your own sub-contracting or get a builder to build a new brick house or a couple of duplex units on it which you might use as long-term rentals, and your property portfolio is off and running with a real head start.”
My question is what is the advantage of registeringas an owner builder?
I also have 3 sets of duplex i bought and very happy with results and would like to try out at building.
Thanks Dom[biggrin]
Originally posted by SALACIOUS:GregF,
Hi,
My question is what is the advantage of registeringas an owner builder?
Thanks Dom[biggrin]Hi Dom
You and I are in the same boat, chief. My wife and I own 16 IP’s, all bought pre-built, but we’re just about to launch into our steepest learning curve by:
1. Buying a block suitable for sub-dividing
2. Beg forumites to help re sub-contracting advice
3. Research pros and cons of:
a) Getting builder for whole project VS
b) Sub-contracting out bit by bitAnyone out there who can answer Dom’s question with the usual precision??
Cheers
Greg[biggrin]Hi myself and hubbie have completed our own home 12 months ago as owner/builders(he’s a carpenter which helps). We probably saved in the vicinity of 50 grand and got a quality product at the end. If you are willing to do your homework and get out there and get quotes it is certainly worthwhile. You get exactly what u want and wwe came in under budget. We are currently building ip with project builder and have come up against obstacles every step of the way, i certainly wont go down that track again good luck penne
Hi Greg,
Small world my wife was a school teacer at kiora.
Are all your ip’s in one area and with 16 of them how do you find time to build?Good luck and hope someone answeres questions soon cause im getting older not richer.
Dom[biggrin]Originally posted by SALACIOUS:Hi Greg,
Small world my wife was a school teacer at kiora.
Are all your ip’s in one area and with 16 of them how do you find time to build?Good luck and hope someone answeres questions soon cause im getting older not richer.
Dom[biggrin]Kiora, just down the road? It really IS a small world!! I used to be a travelling Learning Support teacher, and Kiora was on my beat for a short while. Now I teach High School Special Education kids, and love it (strange, huh)!!
I’m sorry if I misled you: Niki and I own 16 IP’s, but we still haven’t built our first one yet: we’re only just starting out as aspiring owner builders. And no, they’re not all in one place, they’re spread all over Qld: the Sunshine Coast (Mooloolaba, Maleny/Montville) Gladstone, Gympie, Mt Isa etc).
Sorry I can’t help more, but I’m hoping to learn more of the specifics of what’s needed to become an owner builder, and specifically, can I call myself an owner builder when I really have no intention of ever living in the places I want to build?
Cheers
Greg FI have just completed an owner builders course but have yet to actually apply for my licence and start a project.
My understanding of it was that I am limited to one building per 5 yrs. That may be either a single dwelling (if I live in it) or a duplex (if I live in one half I can then rent/sell the other half) – and that is the limit.
This is pretty restrictive from a PI point of view but as it was for our PPOR that was not an issue.
It is a large block though and I did have a wild idea about putting a duplex on the back (it has 2 road frontages) as well as our house on the front. I didn’t think this was possible as an owner builder. Have I got it wrong or is there a loophole I’m missing?
Cheers
SonjaSonja,
Why not owner build the PPOR and use a builder for the duplexes ?KP
Yep that is definitely an option that I have considered. Licenced builders are a bit thin on the ground out here so it would involve a bit of a wait. But still a good plan.
I just got the impression from one of the comments above that perhaps I’m not quite so limited as an owner builder as I thought. If I was able to do it this way it would save me both time and $$$.
Cheers
SonjaHi Amber
I bought a duplex this year and it is as you say, same price as regular houses but with much higher return. I guess as a PPOR they’re not so attractive but as an investment, they’re great. That’s assuming you buy the whole building not just one half of it. Rates might be a bit higher than for a house. Mine is cash flow nuetral but has had great capital growth.
Good luck
judi
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