Duplex Vs Detached house

Discussion in 'What to buy' started by Trenton, 19th May, 2019.

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  1. Trenton

    Trenton New Member

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    17th Feb, 2019
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    Melbourne
    Hey guys,

    I've been debating with myself on purchasing an off the plan duplex as a 1st investment property.

    I've reached out to an independent buyers agent who specializes in redevelopment and adding value to a property.

    I've been told that once the duplex is built we will have the duplex strata titled which will add $80-$100K of value.
    Our strategy would be to use the added equity and recycle our deposit into another investment and scale up the portfolio.
    Duplex yield is around 6%

    The location discussed with the buyer's agent is in NSW - A new suburb within the Newcastle region or new suburb near Liverpool.

    On the flip side to this, I have been also chatting with another buyers agent who has advised purchasing an existing detached house in Brisbane within the $350,000 - $450,000 price point.
    This would have a focus on long term capital growth, balanced cashflow around 5-5.5% gross yield.
    A sound land component of 500-800sqm with a focus on location, existing suburbs with the potential of zoning changes in the years to come with sub 2.5% vacancy rates and low maintenance property (sub 25 years old)

    Any advice is appreciated.
    Thanks
     
  2. Cate Bell

    Cate Bell Well-Known Member

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    I don't know about the NSW areas that you mention, but when talking about "Brisbane", what areas? Are you talking about Brisbane City Council areas? $350-$450K may be doable, in some areas (eg Inala, Bald Hills) but I very much doubt that in Brisbane City Council areas that you would achieve all of that!
     
  3. Shogun

    Shogun Well-Known Member

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    Perth
    That would seem to be the view I see on here.

    New, off the plan and investment are rarely in the same sentence
     
  4. Trenton

    Trenton New Member

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    Thanks for the feedback Cate,
    It was an initial conversation with the BA so we didn't zone in on any specific locations.
     
  5. Cate Bell

    Cate Bell Well-Known Member

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  6. Paul Mete

    Paul Mete Well-Known Member

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    Melbourne
    Hi Trenton

    I hope you are getting some value (discount) from buying a unit off the plan in this market.
    If not I would suggest you consider developing yourself or getting in with a JOINT VENTURE development.

    PAUL
     
    Last edited by a moderator: 26th Sep, 2019
  7. PMC Property

    PMC Property Sydney, Brisbane, Newcastle, Toowoomba Business Member

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    Location:
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    If it's your first investment then the first option is a little riskier and a little more stressful - servicing debt with no income etc on a first up investment can be a little much to take for the new investor.

    The second option is lower risk and lower stress (although some people find any debt and investment stressful) and although will possibly provide lower returns, you'll still be able to spring board to portfolio growth if the BA does their job right.

    - Andrew