Where in Sydney do duplexes stack up?

Revising this slightly aged thread now as I'm probably more so in the market for a duplex/townhouse site than I was in Feb and my budget is now higher.

I could look to spend $1-1.5m (possibly higher if I bring in a partner), so keen for some ideas on areas that could work.

Alternatively does anyone know a development consultant that specialises in finding/project managing these smaller developments in Syd?

Thanks

 

@Jmillar I don't think anyone can point you to any specific suburb or deal that might stack up in Sydney with the current market. It's a case by case basis very dependent on the price paid for the site and whether approval can be obtained easily. The numbers should easily stack up if most purchases between late 2018, early-mid 2019 or between May-September 2020. Other half of the margin is created through some astute project management, cost control and awesome design (that aligns with the local demand).

This site is a great example:https://www.realestate.com.au/sold/property-house-nsw-denistone+west-133856614

Purchased around 1.56M and sold for a tick over 2.05M with CDC approval. The site was on the market ages last year. The duplexes once built should be worth circa 2M in today's market, but might not make sense for most unless the developer is the licensed builder.

 

Why wouldn't that one make sense at those numbers.

High level numbers below:
$2.05m purchase price
Stamps and legals $100k
Demo and build cost circa $900-1m? Let's say $1m

Total cost $3.2m with holding costs

End value $4m

$800k profit is 25%. Where have I gone wrong?

 

+ $60,000 sales commission @ 1.5% inc GST for both duplexes
+ $10,000 for property styling for 2x duplex
+ another $100,000 for building costs, subdivision certification, landscaping and the level finishes envisioned in the artists impression

I think realistically total cost is around 3.4M + holding costs, however future sale value may be well into the 2s.

 

Those numbers still work. Buying anything close to 20% in a market that is headed in an upwards direction is a win, I think.

For every $1 the value goes up, you make $2 when building a duplex

Problem is that $2.05m site sold in Oct 2020 is probably now $2.5!

Any other areas worth checking out? Also, can anyone who has built a duplex in Sydney provide some actual build costs?

 

GST
CGT
Think you might be light on development costs

 

Does anyone have any recent build costs for duplexes in Sydney they could share? And photos/plans for reference?