Information supplied by Duplex Invest
Sydney’s rabid growth run of recent history is over, leaving many investors looking for the next best place to park their investment dollars. The better question to ask may be ‘what’ rather than ‘where’, according to one industry expert, who says duplex developments are the key to driving big profits in the current market.
“Developing a duplex is an excellent strategy for creating equity, and in my opinion it’s one of the safest [strategies] in the current market,” said Paul Bieg, director of DUPLEX INVEST.
“To create equity, you have two main options. You can wait and let the property price increase through capital growth; the down side of this is that it takes years and it is never guaranteed. Or, you can add value by developing.”
A duplex project allows you to benefit from capital growth without waiting for the market to drive price appreciation for you, he explained.
“When you take a single block of land, build two dwellings on it and then subdivide, you are creating the equity through a small and manageable development project,” he added.
“Although the land is now half the size, it does not mean it worth half the price and this is where the equity is created.”
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.
