Affinity Property has helped hundreds of clients buy, sell & lease duplex properties over the past 15 years. Duplexes are very popular with rental property investors and they are increasingly sought after by large, extended families. Below are our 5 Expert Tips to help you improve your investment return when you buy, sell or lease a duplex property.
5 Expert Tips to Increase Property Investment Return on Duplexes
Tip 1: The Bigger, the Better
Duplexes come in all shapes and sizes!
For example, a small duplex may have a configuration of 2-3 bedrooms on one side, and a single bedroom on the other side. It’s important to note that duplexes like this tend to suffer from lower valuations due to their limited size.
On the other hand, larger duplexes tend to enjoy far greater investment returns! The ideal duplex will have a configuration of 6 bedrooms, 4 bathrooms, and a double garage.
Tip 2: Location, location, location
When buying a duplex, it helps to know which amenities are close by. Proximity to parks, schools, public transport, shops, and restaurants can have a huge impact on the types of tenants that you attract!
It’s important to consider the needs of your individual tenants as well. For example, if you are planning on having an elderly relative live in the duplex, it would be beneficial to have a medical centre close by.
Tip 3: Single v Dual Title
When you buy a duplex in Queensland, it will be listed as either a single title or a dual title (comprised of separate titles for each lot).
Both options carry with them a variety of pros and cons. For example, a dual title duplex can be slightly more costly as it requires two separate payments for stamp duty, legal fees, and sometimes even sales & marketing. On the other hand, a single title duplex is treated as single property and incurs only one set of fees. A single title can also reduce other costs such as rates, water, and insurance.
Despite the extra costs, a dual title provides greater options and flexibility. For example, this allows you to lease both sides separately, providing two steady streams of income. You also have the option to live in one side yourself while renting out the other half for extra income.
Tip 4: Tenancy Structure – Be Strategic!
It’s important to structure your tenancy for a constant flow of income. The easiest way to do this is by making sure that both tenancies end at different times. This will guarantee you at least one stream of revenue during the tenant changeover!
It’s also important that your neighbouring tenants are socially compatible. A good relationship between tenants will help to minimise turnover and keep your letting costs down.
Tip 5. Do Your Homework
Before buying, selling, or leasing your duplex, you need to know the market! What type of duplexes exist in the area? How much are they selling for? Who’s buying them and why? There’s a lot to consider, which is why we’re here to help. Over the last 15 years, we’ve sold and managed hundreds of duplexes in North Brisbane and our results speak for themselves. If you’re looking for someone to sell or manage your duplex, simply fill out the form to your left for a free appraisal or contact one of our agents today!
Read real reviews from our clients who’ve bought, sold, or leased duplexes with us! We’re the duplex experts in Kallangur.