Hey guys,
I recently posted a question asking what I should do with my equity and after much thought, I have decided to point myself towards a duplex. WOW, not an easy task to find out information.
Here is where I am up to:
- Spoke to a builder regarding costs involved in building a 2 x 2 bedroom duplex in Toowoomba (depends of type, but approx $280k-$300k)
- Spoke to the land developer that I normally buy from and have been informed that duplexes will be allowed in the next stage of development (Approximate price of land $130,000)
- I then went and spoke to my local council regarding building standards, fees, etc. I was informed that fees will be in the proximity of $20,000 which includes a headcharge???
The builder suggested that I choose a couple of blocks that I am interested in. Then take these blocks to him for recommendation. Acquire an independent inspection of the block. Then sign up for the block subject to a DA approval.
NOW, have I done this right? What have I missed? Do I need to pay anyone else for anything?
Up and down duplex or side by side? Why are you building a 2 bedder and not 3 bedder? Makes a huge a difference in resale. Have you factored site costs? whats the resale value?
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi Bullet,
I would be looking at 3 beds too. the extra space is/should be, quite cheap to add on.
I would suggest doing some more homework on small developments. To be frank, if you are not familiar with what headwork charges are than keep doing your research into everything.
You will also need to think about the strata title, creating a body corporate to sell them individually when you want, timeframes are much different for duplex than a house too.
Better yet go for Torrens title….
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Thanks for the comments guys.
Since posting this question we have made a few changes in our investment strategy. One change has seen up buying a second property that we plan to live in once our PPOR has sold. We are doing this to free up some more cash as we'll only owe $30000-$40000 on it.
The duplex is still high on my list, however, I am forced to wait until a property has sold and we have moved into the newly acquired property.
Thanks for the comments guys.
Since posting this question we have made a few changes in our investment strategy. One change has seen up buying a second property that we plan to live in once our PPOR has sold. We are doing this to free up some more cash as we'll only owe $30000-$40000 on it.
The duplex is still high on my list, however, I am forced to wait until a property has sold and we have moved into the newly acquired property.
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