Duplex - a question of capital return?

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From: Greg Belcher


Fellow forum members,

We are considering our first IP venture. From a long list of possibilities we have reduced the list to a 2 x 3 bedroom, brick and tile duplex about 10 years old in a popular part of town. We have inspected the property and feel that it is a good place to start our IP career. Analysis of the figures indicate that the property will be cashflow positive.

Are there any forum members who have experience with duplexes, particularly with the issue of capital growth and return when you sold the property?

All responses, positive and negative, will be most appreciated.

Greg and Chris
 
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Reply: 1
From: Diane -


We have found our duplex has done as well as our houses in the same area. We own both sides and they have been excellent rental dwellings.

Diane
 
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Reply: 1.1
From: Greg Dunne


Do your homework. If the numbers are OK then go ahead. Our duplex is always rented and the return is good.
 
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Reply: 1.1.1
From: Michael Croft


Duplexes usually have good land component and we have found that our duplexes are very similar to houses in terms of cap gain - predominantly location dependent.

regards, Michael Croft
 
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Reply: 1.1.1.1
From: .watto .


Could someone please describe a duplex property? I am unsure of what this type of property is.

Cheers
Watto
 
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Reply: 1.1.1.1.1
From: Steve Navra


Duplexes are great investments!

Two rentals can certainly be an advantage, and I have to agree with guru Croft that the area / suburb is important.

As far as capital growth goes:
With any property (House /Duplex /Unit) as long as there is at least a 30% land content (per dwelling)then capital growth will be adequate.

Regards,

Steve
 
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Reply: 2
From: Diane -


A duplex is usually two dwellings side by side joined by a common fire wall. Both sets of duplex I have title to are built on a block of land which has been sub divided into two blocks and the buildings are joined at the garages with a double brick fire wall. Both have smallish yards (this would depend on the size the block was to start with). Duplex can be single or double storey (mine are single). Hope this helps explain what a duplex is.

Diane
 
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Reply: 2.1
From: Sim' Hampel


Not that it actually matters, but I refer to a single storey pair of dwellings with a common wall as "maisonettes" (aka semi-detached houses if in a cheap area !), and two multi-storey dwellings with a common wall as "townhouses".

Looking at the various glossaries around on the web, there does not seem to be any strict definitions of any of these, so it seems to be a matter of taste.

Maisonette seems more "up market" than duplex or semi-detached ;-)

 
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Reply: 2.1.1
From: Paul Roberts


I developed and own a duplex pair. It was a first for me, normally buy houses. But I am impressed with the growth and the cash flow. Certainly I will buy more. The main thing I like about a duplex is that they are normally near a feature item, ie shops, water, beach etc. This allows access to a high growth area with less capital outlay and still the same high returns. Do the homework and go for it!
 
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