Duplex Costing

Hi All,

Looking at options and was hoping for a rough guide to knock down existing house and granny flat on 600sqm in Sutherland Shire and rebuild with a duplex. Also, what would be the rough depreciation be of this new build.

Thinking long term here and while the current house and granny flat is bringing in rent, they are not without their issues and by rebuilding now I can make use of the depreciation against my current income rather than a reduced income heading into retirement

Thanks in advance

 

You already have a dual income property but want to demo and build?

I don't know the numbers, but it sounds awfully like you just doing it for the purposes of depreciation, which is probably a bad idea.

 

I'm not sure of the figures but I'm thinking the same thing. Some people on this forum don;t understand that in Sydney the land is well over $1-3 million and the building worth almost nothing, so by rebuilding AND reaping the depreciation tax benefits as a bonus a LOT of boxes get ticked. Especially as its nicer to live in a brand new place later in life. Massive reductions in maintenance costs too, if you do a new build.....

 

Work on say $15k-$18k per square of construction depending on size. Kitchens and wet areas cost more /m2. Works out around $1,600 - $1,900 /m2.

Plus demo and plans etc might be another $50k.

You thinking double storey 3-4 bedroom?

 

I would work off a minimum of $2,000 per sqm turnkey for medium finishes and around $2,500 to $3,000 per sqm for higher grade finishes (hardwood floors, higher spec kitchen and bathroom, etc).

If you are doing a custom build then make sure you engage the builder early on so they can provide their feedback on the design (things like ensuring walls lay on top of each other, facade finishes, etc).

If you go via a project home builder then its going to cost you less but you have little flexibility in the layout.

 

Hi All,

Thanks for the feedback and the numbers. What is the average size of a 3 and 4 bed duplex? Build time?

No I am not thinking about this purely for depreciation. The house I have is 1950's and the granny flat is newer. The rent charged for the house is less than market for a standalone comparable because of the granny flat in the backyard but the combined rent does make up for it.

Then there is the dynamics of of two different tenants. Those in the flat don't mind so much (probably because they know its a flat) but those in the house always seem compromised as they don't have their backyard all to themselves and have to share it.

So, just trying to think about the options and given the age of the house I'm looking at this as an option. Still concept so don't know the quality of finish or the layout, but possibly 3-4 beds each with garage and driveway/carport. I will need to see what actually fits on the block, council, rental demand and expected quality from prospective tenants. Its in a good, high demand area(therefore a keeper) so I want to create something that will be more attractive and last a lot longer than what is currently there.

Also if I do it now, then I have the benefit of depreciation too. In that regard say build cost is $500K and Fixtures and Fittings are $100K, does this mean the deductions would be roughly $12.5K over 40years and Fixtures and Fittings are deducted at their effective life. I would get a proper depreciation schedule done, but roughly speaking.

Thanks again