Whether you’re looking for a multi-family home or investing in the lucrative world of real estate, the duplex is the way to go. However, building a duplex for beginners can be a daunting task. Duplex development is a great way to create equity and generate cash flow – but only if you go about it the right way. There are many things you must consider when building a duplex, which means it can get confusing.
We’ve put together a list of five tips to help you succeed when you’re ready to start building a duplex.
Building a Duplex for Beginners: Tips for Success
1. Get professionals involved early on
Even if you’ve had previous experience in property investment, duplex development is very different. Involving professionals early on will help you save time and avoid simple mistakes. Consider getting in touch with these professionals to make sure your build goes smoothly:
- Town planner
- Professional architect
- Professional builder
- Financial expert
- Lawyer/solicitor
2. Do your research
Before you buy a block of land for your duplex investment, make sure you’ve done your research on it. Talk to experts to ensure that council zoning will allow you to build there. Remember that only certain areas support duplexes, so choose wisely.
Your block of land needs to meet zoning criteria but it also should be in an area that will make your investment worthwhile. Areas of strong growth and high rental yields will give you the best return on your purchase. If you want a duplex with a high rental return, it’s also important to do some research before construction. Visit some open houses, talk to a real estate agent, and find out what buyers and renters like.
3. Budget responsibly
There are plenty of fees associated with building a duplex, especially for beginners. From council fees to holding costs, if you don’t budget from the start, you might find yourself in some hot water. Duplexes are great because they create equity quickly…but only if you don’t overspend while building.
Duplexes are two different units but, depending on whether they have separate titles, they may have to be sold as one. Consider what you will be using the duplex for. Will you be:
- Renting both units
- Selling both units
- Selling one unit, renting the other
- Sell/renting one unit, retaining the other
It’s a good idea to talk to a financial expert who can help you understand your financial capacity. These professionals can walk you through what building a duplex might mean for you.
4. Perform a feasibility study
To ensure that your project will be worth the money and time you’re spending, take some time to perform a feasibility study early on. This is a must if you want to ensure that your project has a good chance of success. At the end of the study, you can determine whether it’s worthwhile to build your duplex.
5. Invest in quality
If you want a good rental return then you need to invest in a nice rental property. Buyers and renters are more discerning today when it comes to their properties so it’s important to follow the popular trends. Duplex architecture is becoming more sophisticated and modern. It will benefit you to take some time to research current duplexes before designing yours.
And when it comes to design, don’t scrimp on the right home builders. You don’t have to hire the biggest names out there to get great results. However, make sure your professionals have several satisfactorily completed projects they’re willing to show you.
Build with a Champion
The duplex building process doesn’t have to be confusing when you work with Champion Homes. With over 20 years of building experience, versatile home designs, and knowledgeable consultants, we make duplex investment easier than ever.
Contact Champion Homes for more information or to book an appointment at our new Champion Duplex Design Centre.
