I have recently sold a commercial property and have a fair bit of cash sitting in term deposit. Looking to do something with and leaning towards a duplex development in Sydney Anyone have any thoughts on this? Have I missed the boat? Is it still a profitable exercise?
Yes there are still profitable opportunities to do this. Be conservative with your end product valuation and make sure you're not exposing yourself to an area with high supply.
@Meristone posted a great case study here: NSW Leichhardt Duplex Development - case study To me it seems upmarket suburbs where land supply is low can give you good margins through good and bad cycles if the final product matches the market. The downside of course is the large cost of acquiring land in upmarket suburbs though I'd imagine there wouldn't be as much competition from other small developers for that same reason.
I still see opportunities out there, but agree with @Rowan that it needs to be in a high land value area. Unfortunately for those starting out, the lack of experience makes it harder to spot good deals and minimise the risk. The sydney market is also a concern but more resiliant in these areas. I'm half eyeing a duplex site now, but lack the funding. Maybe you should be considering a JV
