Is a new duplex a bad buy

Discussion in 'What to buy' started by carbon, 30th Mar, 2021.

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  1. carbon

    carbon Active Member

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    Hi

    We have a max budget of 1.5, maybe 1.6 at a stretch and looking for a ppor

    we’re looking around St George area in Sydney, Kingsgrove/Bexley/Peakhurst/Penshurst etc

    we’re finding it tough to find a house in our range that we would be happy with without reno’s.

    there are some nice duplex’s around, but at 1.5-1.6+

    Obviously the appeal is that it’s ready to go, but I’m worried that there will be no future growth? Are they a bad financial decision?

    thanks
     
  2. hammer

    hammer Well-Known Member

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    If it's for your home then no. Get the best property you can afford in the area you want to be.
    Duplexes aren't as good as houses...but they're waaay better than units.
     
    carbon likes this.
  3. Redom

    Redom Mortgage Broker Business Plus Member

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    I don’t mind the product, it’s nice and suitable to live in for many.

    From an investment perspective, it’s not likely to do as well as landed site with low build value - but for many these aren’t as nice to live in.

    For an OO decision though, the frameworks for choice are different to numbers on a spreadsheet. if the place suits your goals/requirements, then it’s great.
     
    carbon likes this.
  4. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Duplexes is a alternative option if youre being outpriced by cashed up buyers, more notably developers.

    This was always going to be a problem, hence NSW Planning loosened the restrictions on low to medium housing developments to bridge the gap between apartments and houses.

    It's a good option if you want something brand new and ready to move in.

    2 of my clients lately have bought duplexes in Revesby and Panania due to being priced out.
     
  5. skater

    skater Well-Known Member

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    If you like it, and it's for a PPOR, then go for it.
     
    carbon likes this.
  6. carbon

    carbon Active Member

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    how far off house prices were they in those areas ? We’re finding in Peakhurst that nice semi renovated houses on big blocks might be 100-150k more than the duplex. But getting double the land
     
  7. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Very hard to compare prices.

    With an existing house youre pretty much paying for land with an older unrenovated and smaller house.

    With a duplex, yes the land is smaller but the house is brand new and bigger.

    Existing Houses going for around $1.15m and duplexes around $1.2m give and take.
     
  8. Lacrim

    Lacrim Well-Known Member

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    Anything new is normally and generally a bad buy.
     
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