Best areas for investment in Land and Duplex

Archaon · 21st Jan, 2020

Deepak said: ↑

They are charging 5k for these development projects and i think they have teamed up or may be have contacts with lot of builders, architects, etc, not sure and they are claiming they will handle everything and will be transparent at every stage(of course it is too good to be true and that's why I am going to meet them , although it wont change much I guess). Contracts and all they ll explain and will start only If I am 100 percent happy and would like to go, otherwise they ll tell next suitable option. A quick google search on caifu properties and watching some of their videos would do it for you. They have done it in Wadalbla and Fletcher as their successful examples which they are showing in their videos. They said currently most of their projects are in Brisbane and some are in Coast. One of their guy told me some of the builder names they are using too.
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If they know all the builders/architects/solicitors/agents, then they are making far more than 5k through the whole process, as they are most likely all affiliated and will have kickbacks making profits at each turn.

All that will be left is you footing the bill with end costs higher than market value, and little to no equity gained...

Milo16 · 22nd Jan, 2020

Deepak said: ↑

Which is the other area in Sydney? And It's ok if you dont prefer to share it on public forum.
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Sorry for the slow reply. Northern Beaches near the new hospital.

DanUM · 29th Mar, 2021

Hi Sash,

Great to hear about your project. I too am looking for duplex project in regional Sydney. But the current build prices are quite high 650k+ and suitable lands also are very limited. And I see there are quite a lot duplex specialists and projects going on. Have the gains from duplex projects gone lower nowadays? Is it still possible make high rental yield+20%equity from Duplex projects?

Do you recommend any specific courses for me to master the process/risks/contacts for duplex processes? I dont have any development experiences, but I'm willing to put my effort on learning/research under a guidance of a mentor.

Thanks,
Dan

sash said: ↑

Yes I have here is how:

1. Buy the land cheap.... bought some land at 139k and 155k...land is now worth 230 and 260k respectively.

2. Built 4x2x2 homes...locked in prices 3 years ago for 215k (21.5 sq) and 238k (25sq). Build costs now 230-240k and 255-270k respectively. These were turnkey.

Vals on these now 560k and 630k respectively. Doing the numbers:

1. Increase in land value 91k and 105k respectively.

2. Build cost increase - 15-20k and 17-32k

So there is another 80-100k in increases which is due to other factors.

This can be done....but the skills need to be honed. The estates I have built with are now also experiencing rent increases.

For example in one estate property rented out for 390pw...4 years ago....now rent is 435pw..still about 5-10pw under market. Same estate build completed 2.5 years ago...rented for 365pw...now 380pw (market). These were built for 335k and 260k as H&L packages between 2.5 and 4 years ago. Vals on these would be 550k and 410k respectively. So yes there is money in H&L with the right due diligence and selection of builders and building the right product. Unless you goals are lofty on both these products total spend was about 605k including stamps (land was only 96k and 97k). Value now for both is 960k. Which presents a 60% increase in asset value. Add to this another say 40k and 50k in depreciation. That is another 45k (assuming top rate of tax) in your pocket.

Agree to many BA sharks...who are overselling their products. I tend to source under market.... even cheaper than they originally bought the block for and can't settle.

I am keeping these as the developer used the margin scheme on the land. So based on that..I would be up for about 30-35k in GST. That would reduce my profits to about 170 and 200k respectively. But I would also be up for tax on the full amount of these if I sold immediately. I have worked the depreciation on these there is about 55k and 65k respectively on depreciation on these over 5 years. So that is another 30-33k per property in my pocket. Plus rents which makes these slighly CF positive around 25-40pw...or $1300 to $2080 positive per annum. This is a no brainer.
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cp-oz · 27th Jun, 2023

innovatism said: ↑

Thanks for being brutally honest, I need honest opinions anyway and not sweet words which everyone wants to hear, if it comes to my investments I agree with you and to be honest I am not that experienced yet, to do it stand alone but the buyer agent I am thinking, looks good for now, I will have a discussion with them next week though after which I will dig more and will then decide. I think I have mentioned in one of my previous posts too, the agent i am thinking is Caifu properties and I haven't found anything against them yet. If anyone personally used them, I am open to suggestions and would love to hear thoughts. They are claiming to provide better deals than market(lower than market value, their words), using good builder and managing end to end from approvals to build to rent it out. And they will provide options until and unless I am 100 percent satisfied and will go with the one with an option to buy multiple properties within 12 months of buying my firs property, if I have capacity. Also, they are charging fee but their way is bit transparent in terms of they are not hiding their fee etc and it's still lot lesser than other agents. Also, i am sure they must be making money in other things too but as far as I am gaining profits as they are claiming I don't mind.

Last but not least, yes I am hoping for profits but in worst case I know it will be no profit no loss or bit of loss but still i am thinking I will have two houses (not houses -houses but still will be better than Units) and I can easily rent it out as anyway my plan is to hold,provided I chose the right location, so I think site selection is most important.
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Hi Deepak, sorry this is your very old post but i'm interested to know if u went ahead with caifu duplex project or not and if u proceeded then how was experience, and how was the result in terms of equity uplift at completion etc ?

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Best areas for investment in Land and Duplex

Archaon Well-Known Member

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Best areas for investment in Land and Duplex

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