The well-being of your family will be primarily related to your living situation. Are your children getting older, and do you need more space for daily activities? Do you want to move to a residential area closer to your workplace? Are you looking to lower the cost of your rent? If that’s the case, going for a duplex could be one of the most intelligent decisions you can make. Duplexes are basically two separate homes built on the same lot of land that share a common wall. They can be constructed side by side, have the same owner, or they can be separated into separate ownership titles.
When built by duplex builders in Sydney, semi-detached houses are often more affordable than single-family units, and their maintenance is more straightforward. Suppose tenants occupy both rental units. In that case, the utility bills and general exterior maintenance work of the property can be shared in accordance with the leases or rental agreements signed by each unit occupant. Such arrangements are usually possible if both rented-out units share the same owner. However, this is not necessarily a ground rule.
Are you already a homeowner, and would you like to invest in our country’s growing real estate market? If so, a financially prudent investment could be the construction of a semi-detached house with the help of duplex builders. Semis are advantageous in terms of rental income, which will be double that of a granny flat or single-family rental unit. Plus, the value of duplexes is constantly rising, which is in line with Sydney’s real estate market forecasts.
A Cost-Advantageous Investment
Sydney’s property market is estimated to grow by around 6% per year until 2026. But let’s do an exercise of imagination and say the same growth trends will continue for the next ten years. Do you already own a plot of land large enough for your real estate ambitions? With the help of duplex builders, have you invested $1 million in the construction of a semi-detached house that features four bedrooms and two bathrooms?
If so, if you decide to rent the units at $2000 per month for ten years, your duplex building will eventually be worth around 1.8 million dollars, and your rental income will be close to $500,000. Even considering loan obligations, taxes and inflation, you will most definitely earn a significant profit.
Duplex complexes are an efficient use of already parcelled land, have a lower environmental impact than single-family units, and are perfect investments for families practising multi-generational living. Not only that, duplexes are straightforward to build, their design can be tailored to your subjective preferences, and are encouraged by local councils. Does this mean the designing and construction phase of semi-detached houses is a breeze? No. However, with the help of duplex builders in Sydney, the process could be simplified, and the construction should be finalised in less than a year.
What Are the Necessary Specifications and Permits for a Duplex?
In NSW, the approval process for most duplex construction projects can be accelerated through the Complying Development Process, which is made possible by the Low Rise Housing Diversity Code. Duplexes require development approval, a construction certificate attesting that their design meets the BCA standards, and an OC, which can be obtained from your local council. The process of building a duplex on your already-parcelled land is relatively straightforward in NSW. However, the conditions for rezoning a property are more stringent, and there is no guarantee that you will obtain your DA without a complex and well-designed strategic development plan.
As for the minimum requirements to build a duplex on your land, the building block on which you wish to construct the duplex must be at least 400 square meters in size and 15 meters wide. However, if you create a mandatory car parking space at the rear of the duplex building, the minimum width of the block can be reduced to 12 meters. In a NSW duplex building, the units must be located side-by-side and have access to a public road.
Not least, duplexes in NSW must have a minimum side setback of 90 centimetres, can’t exceed 8.5 meters in height, and can’t feature more than two storeys. When it comes to duplex designs, however, things are more lenient, as the principal council requirement regarding styling is for the building to respect the architectural look specific to the neighbourhood. Plus, each duplex dwelling must provide access to a private open-air space.
Duplex vs Granny Flats: What to Choose?
Australia’s most populated cities are facing a housing shortage that shows no sign of ending any time soon. So, this has pushed a good proportion of Aussie families to invest in affordable housing solutions that can be rented out for long-term profits. Do you own a home in a residential area sought-after by couples, retirees or young families? If so, a good idea might be to invest in granny flats. Also known as accessory dwelling units, granny flats are more compact than duplexes, as they are self-contained units that must be built next to a primary dwelling. Granny flats are cheaper than semi-detached houses, and they can add up to 20% to the real estate market value of your property.
However, duplex units are typically larger than granny flats, are more suitable for long-term living, and have higher capital growth. The approval process for duplex constructions is complex, and the costs of construction will be higher. However, duplexes are more flexible projects, and in the long term, their financial yield will be more significant. What is suitable for you? It depends on your long-term preferences and monetary possibilities. But whatever you choose, you will need an expert in ADU and duplex designs in Sydney.
A Tool for Long-Term Financial Stability
For many Australian families, investing in a duplex building is a surefire way to achieve economic prosperity. The construction of a duplex is significantly more expensive than in the case of granny flats, and the completion time is longer. However, duplex designs are less limited, and the building value will most likely rise progressively regardless of the development of the market.
Do you plan to invest in a semi-detached house built with the help of experts in duplex designs in Sydney? Then, you’re likely to see a substantial return on your investment. Duplexes yield double rental income, and the risks of rental unit vacancy are halved.
Are you looking to rent a unit in a duplex building? If so, your weekly rent will probably be lower than in the case of a single-family home located in the same neighbourhood. Moreover, duplex buildings typically provide more space than conventional apartments, and by law, you will have access to a private outdoor area. Can a granny flat be a more affordable investment? Yes. However, duplexes are a choice to consider, as their popularity, at least in NSW, is constantly rising.
