I am thinking of buying a duplex in Adelaide’s north (Elizabeth/ Davoren Park). Is there any pit fall in investing in duplex? Does the common wall between 2 adjescent semi-detached propery make the investment less attractive? Is there any hidden danger or on going cost involved? please advise.
Sharif
The only drawback with the semi detached homes is that you cannot demolish your semi to build villas or units unless you work in conjunction with the owner of the adjoining property.
Semi’s in the Elizabeth & Davoren Park areas have been a good investment over the past 5-6 years, semi’s purchased for $40,000 to $45,000 in the year 2000 are now selling for $110,000 to $125,000 and demand is high.
Best areas based on quality of area and rent potential are:
1) Elizabeth North (Rosewood Village)
2) Elizabeth Vale
3) Elizabeth East
4) Elizabeth South & Elizabeth Grove
5) Elizabeth Downs & Davoren ParkBut remember theres good & bad streets in all neighbourhoods in the north.
Watch out for cracking, these semi’s are 40-45 years old, some have serious cracking, but most are only minor.
Whilst short term rent return is important, the long term returns will be in the potential development of the land up the track. These semi’s are generally sitting on 480 to 750 square metres each.
Pairs are a good investment if you can get them for a fair price.Don’t be put off by reports of bad tenants, it is a lower social economic area, but thats why rental demand is so high in the area. As always you need a good property manager if you’re not local.
In summary, I wouldn’t be put off by the party wall, It’s unlikely you’ll have any difficulty selling for a good profit in the future.
Good luck
Hi, I’ve never understood why semis make good investments unless you can buy the both on a big block. Why not buy a free standing home on 750 – 850 m2 in suburbs like Kilburn, Blair Athol or Clearview? Even Clovelly Park or St Mary’s may have cheaper old houses that are rentable as is and down the track may be good for redevelopment.
Having said that, let me add that this is just my point of view and I’m not offering it as advice because the yield on residential property is not very strong.
Good luck with your search.
Kum YinThanks Skip101 and Kum for your kind thoughts. Please advice me if there is an on going fee (like strata fee etc when one invests in a dipex). Also what happens if the owners of adjoining duplex can not agree on a development plan?
Thanks
SharifSharif
I don’t know the Adelaide, but I would look if it’s a good area and if duplexes are typical here.
If that’s the way the life in Davoren Park in like ( I mean you think about Davoren Park – you think about a duplex or a terrace – so what the problem?
If you duplex is the first in the fires here I would warry a bit.
Cheers,
These Ex Housing Trust semi’s/duplex’s are Torrens title, so there are no shared or strata fees.
Development is a likely option in years to come, but your neighbour is under no obligation.
There are free standing brick houses avaialble in the area at $130 to $140k, rent returns $170 to $180 per week on blocks typically 7 to 800 square metres.
PM me if you need more details.
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