If you’re an investor you are probably searching for ways to maximize the value of your investment, especially when it comes to money. Building a duplex is one of those options and see’s a better return on investment compared to other options like a traditional home, townhouse or apartment.
Whether you are building on new land as a package or rebuilding your home you are making a good investment decision. Instead of having rental income from a single property, you can cash in on income from two separate residencies, anyone can see the appeal.
Of course, you will need to get development approval, using preexisting building plans which are common amongst land packages can help make the process easier, but the costs associated with the approval process can add up quickly, so be sure you budget for that.
Once the development approval has been successful, you will now need to get building approval, this can be challenging especially with neighbors. You can expect neighbors will add their $0.2 cents, but this is one of the tradeoffs you as an investor should be prepared for.
The building approval process is just as long and is conducted in stages. Each stage of approval has its own expectations and timeline. This process is may be managed by the building company, so make sure you choose a company who is reputable. At the beginning of the build, you will likely need to take fences on all sides of the property down.
Neighbors won’t be happy to see their gardens getting damaged, so make sure you monitor the building activity on your land as much as possible, document and take photos and communicate with the builders and contractors so that you can minimize the impact of your investment on your neighbors.
Remember, the relationship with your neighbors is important, especially if you are planning to rent these properties out. They can offer insightful information about your tenants which may be helpful in considering the renewal of their leases.
Once the build is progressing, materials are going to be approved and the structure of the house is going to start being setup. It is not uncommon for materials on your site to go missing or stolen, so having a relationship with your neighbors may go along to way avoid unnecessary delay in your build.
Upon completion of the build, your duplex will need to be assessed for fire safety and receive its occupational certificate before anyone can move in. Once you receive the occupational certificate you will need to get landlords insurance on your duplexes.
Now you are ready to contact a real estate agent to manage the marketing process of your property. In metropolitan areas this process should not take any longer than two months. Make sure you research your real estate agents to find someone who you can trust and rely on.
When choosing a real estate agent, choose someone who has a lengthy history with their current employer and has positive feedback on their property management skills. This will ensure you get a good marketable price with respectable tenants.