The Weekend Post - Real Estate
INVEST ‘SAVVY’ AND DOUBLE UP
Diverse appeal and high yields make duplexes an attractive investment
DUPLEXES can offer a better investment return than apartments or townhouses for savvy investors, according to Rachel Blok of Twomey Schriber Property Group.
“It is quite rare to come across full duplexes, that aren’t strata title,” Ms Blok said.
“Duplexes tend to hold their value and increase in value at a greater rate than apartments and there is also the prospect of more diverse tenant clientele – a lot of duplexes have their own garden suitable for tenants with pets, and single level, ground floor can be more suitable for elderly people and for young families.
“They are rare as hen’s teeth and with smaller (residential) blocks being released now, we are unlikely to see so many duplexes being approved – they’re definitely a good investment to have and to hold,” she said.
Ms Blok said an increasing number of multigenerational families were purchasing duplexes.
And while buying a duplex might not be at the forefront of first homebuyer’s minds, there are many advantages, including access to that coveted location on a first homeowner budget, and if you’re just buying the one home, it could enable earlier access to the housing market.
Buying the whole duplex, you have the option of living in one side and renting out the other.
Duplexes offer more privacy than apartments as you’re only sharing with one neighbour, and are likely to have your own backyard.
With an apartment, you usually don’t own the surrounding land – with a duplex, you own the portion of the land that’s associated with your 22 FAIRWAY ST YORKEYS KNOB home. In essence, owning a duplex means owning two separate homes on a single block, and duplexes are widely considered high-growth and high-yield investments.
Ms Blok pointed out that unlike an apartment, there were no body corporate levies.
22 FAIRWAY ST, YORKEYS KNOB
Beds: 4; Bath: 2; Cars: 2
Agent: Rachel Blok, Twomey Schriber Property Group, 0405 173 899
Price: Offers over $489,000
Currently tenanted on both sides, this longstanding investment property in a beachside enclave offers solid returns for an investor.
On a 809sq m block, each side has a large fenced rear yard, individual driveway with carport, two large bedrooms, open plan living and dining zones, internal laundries with direct outdoor access, and block solid walls with steel door frames.
Unit prices at Yorkeys Knob were $224,500 for January 2021, above the Cairns regional median of $220,000, with sales trending upwards in number since November 2020 and 60 units in total sold over the past 12 months.
The median price of a unit at Yorkeys Knob is up by 4.42 per cent compared with a -0.9 per cent dip for Cairns region.
The median house price at Yorkeys Knob was $397,000 in January 2021, down from a five year high $414,250 in December 2020, according to CoreLogic.
With a leafy outlook and bright interiors, this dual occupancy complex presents as an investment opportunity, while it would also suit a generational family living arrangement.
Completely refurbished, each side has stone topped kitchens with island benches, a generous open plan living and dining area, three large airconditioned bedrooms with robes, an office room or extra storage room, light and airy bathroom, private garden area and lock-up garden shed, and undercover carparking.
The property is currently tenanted.
The median price of a unit in Caravonica in November 2020 was $262,500 compared with $220,000 for Cairns regional for the same period.
Caravonica homes have benefited from strong demand, with the median price of a home in Caravonica $470,000 in December 2020, up from $385,000 a year previously, with 45 homes sold over the period.