Why Invest In A Duplex Development?
We believe that a duplex, or development project, is the only smart way to see a substantial development profit and a positive cash flow return in the current market. When purchasing a duplex for investment, it is safe to say that investors are looking for three key elements – capital growth, rental yield and return on investment. You also relealise the instant equity from $80,000 – $150,000 depending on loacations.
Capital growth is when the value of a property increases due to the demand of housing in that area. You cannot control this, and you can only make an educated and very well researched guess as to when it will occur. When you build a duplex you are taking a single block of land, adding 2 houses, cutting it in half, and thus creating a development profit. A majority of the capital growth is now created by the 2 combined land values being higher than the original purchase price of the land due to strata titling of the duplex.