I am trying to decide whether to commit to building two pairs of duplexes with the intention to sell off one later but i am unsure of the selling possibilities.
I have bought two blocks in country SA near the Murray River. I am thinking of building a duplex(s?) on each block, giving 4 dwellings all up. I will keep one of the propertys and sell off the second property but need some opinions from investors on buying duplexes.
The main draw back is that they would be on the one title, so any buyers would need to buy the two attached dwellings rather than simply one dwelling, and obviously a higher price as they are essentially buying two places.
In the long run each dwelling will rent for between 170 and 190 per week, with an overall purchase price of $330000. This obviously equates to $165000 for each half of the property.
The duplexes would EACH be 3 bedrooms with possibily a double garage/carport. Each half would have about 380m2 of land also.
Any tips would be great! Basically i dont want to build duplexes if i cant sell them due to them needing to be sold as one property on one title buttwo dwellings.
Thanks,
I have never built a duplex pair. but I own a pair on the the 1 title, you should be able to get them strata titled and be able to sell them on seperate titles. This is our plan if we decide to sell, there are some regulation on fire resistant walls or something between them. the flip side ios if they are on seperate titles then you will have to pay rates on each block (so 4 lots of rates as aposed to 2 currently).
Why not strata title 1 lot sell them both and put the profits into the other, one rent it out, being new and high depreciation it may work out cashflow neutral or maybe positive?
You must be logged in to reply to this topic. If you don't have an account, you can register here.
