Building a Duplex can be an exciting and financially rewarding venture. Duplexes are a popular housing option for investors and homeowners alike, offering the opportunity to live in one unit and rent out the other or maximise rental income from both units. But before you embark on this journey, it's crucial to understand the costs involved.
Building a duplex is one of the best ways to get more out of your land. Whether you’re an experienced investor or a family looking for a smarter living solution, the advantages go far beyond just having a brand-new home. Here is why a duplex is a game-changer in the current NSW market:
With two separate dwellings under one roof, you can live in one and rent out the other, or lease both to double your rental yield. In a high-demand market like Sydney, where median rents hover around $1,000 per week, that’s a massive boost to your cash flow. Plus, if your design includes extra parking or storage, you can rent those out separately for even more income!
Building a duplex is significantly more cost-effective than constructing two standalone houses. Because both units share structural elements like walls, roofing, plumbing, and electrical systems, you save on overall construction and material costs. Maintenance is also simpler. You only have one lawn to mow and fewer external areas to manage compared to two separate properties.
A duplex offers incredible flexibility through strata titling. By splitting the ownership of the two units, you can significantly increase your property’s value. For example, a duplex on a single title might be worth $2.2 million, but once strata titled, selling each unit for $1.3 million could net you a total of $2.6 million (that’s an extra $400,000 in value!)
Not just for investors, duplexes are a brilliant solution for multigenerational living. It allows elderly parents to live next door with full independence, or provides adult children a space of their own while they save for the future. Best of all, if you live in one and rent the other, your tenant could effectively cover a massive chunk of your mortgage, allowing you to live in a premium location for a fraction of the cost.
Ready to see how a duplex can work for you? Why not explore our duplex home designs and find the perfect fit for your block!
Land prices can vary significantly depending on the location, size, and local real estate market. The cost of your land will largely depend on where you choose to build, so it's essential to research and budget for this expense accordingly.
Finding the perfect duplex design and obtaining the necessary approvals and permits are crucial steps in the building process. Mojo Homes has 11 new Duplex designs to suit a variety of blocks and can assist you in designing your duplex to your preferences, including customising floor plans, facades, and inclusions.
The construction costs are perhaps the most significant part of building a Duplex. Mojo Homes offer various design and construction options, each with its own price range. Your choices regarding materials, finishes, and inclusions will also impact the final construction cost. Our New Home Consultants work closely with you to determine a construction budget that aligns with your goals.
You'll need to budget for utility connections, including water, electricity, gas, and sewage. These costs can vary based on location and the type of services available in your chosen area.
Don't forget to consider landscaping and outdoor areas for your Duplex. This includes features like gardens, driveways, and outdoor entertainment spaces. The cost of landscaping will depend on the size of your land and your landscaping preferences.
Building a duplex involves various legal and financial expenses, such as conveyancing fees, loan application fees, and insurance costs. It's essential to consult with legal and financial professionals to navigate these aspects of the project.
Before the first sod is turned, you need the green light from the local council. Navigating paperwork can be a minefield, but understanding the fees upfront prevents nasty surprises. Development Application (DA), typically ranges between $5,000 and $15,000, while your Construction Certificate (CC) will likely sit between $3,000 and $5,000.
In NSW, a BASIX certificate is mandatory to meet energy efficiency standards and costs roughly $1,000 to $3,000. You’ll also need to factor in $2,000 to $10,000 for essential surveying and engineering reports. If you're building for the first time, these requirements can feel overwhelming. That’s why it pays to partner with an expert team like Mojo. We understand many Sydney and New South Wales regulations, making sure your project is compliant and your budget stays on track.
Other expenses may include site preparation, demolition costs (if necessary), and any unexpected construction challenges. Setting aside a contingency budget can help you cover unforeseen costs that may arise during construction.
Each duplex project is unique, and costs can vary based on factors like location, design, and inclusions. By working closely with Mojo Homes and conducting thorough research and budgeting, you can embark on your duplex building journey with confidence. Remember that a well-planned project can offer you both a comfortable living space and a potentially lucrative investment opportunity.
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