Building Lifestyle Through Investments

All The Details About Duplex Prices in 2022

by Jul 20, 2022

Duplexes are popular among smart property builders in the Central Coast region of NSW. They offer a variety of benefits, including affordability and flexibility of use, whether as a lifestyle option or an investment.

This article will examine duplexes and the benefits of building one. We will take a closer look at duplex prices in 2022 and the factors likely to impact them and the housing market, generally.

What is a Duplex?

Duplex Design - Bed Room

Duplexes are two dwellings built side by side, sharing a roof and a common wall. Each unit has its own individual entrance, kitchen, and bathroom. Duplexes can either be attached or detached.

The Benefits of Duplexes

The immediate benefit of a duplex is you have built two homes under a single roof. They are more affordable than traditional houses and offer many benefits, either from the lifestyle choices available or, more commonly, as an investment property.

Using the additional living space

Duplexes offer a lot of additional living space. This extra room can be extremely beneficial, especially for families. Duplexes offer plenty of room for children to play and for parents to relax. Duplexes also allow for more privacy than traditional houses, as each unit has its own entrance.

Some ways a family could use the extra living space, include:

A home office
A home office can be a great benefit to any family. It can allow parents to work from home, which can be extremely helpful if they need to stay home with their children. A home office can also provide a space for your kids to do their homework and for adults to relax. Having a home office can also help families save money, as they will not need to pay for childcare.

A working or study area away from the main family home can help you stay organised and more productive. Within a duplex, you would be able to have multiple workspaces or meeting/presentation areas. You also have the luxury of a full bathroom and kitchen, plus a short and stress-free commute to work!

A Guest bedroom
A guest bedroom, or multiple bedrooms, is a great way to welcome visitors to your home, with a comfortable place to stay while they are in town.

There are many benefits to having a guest bedroom. It can help your friends and family, save the money they would have paid for accommodation nearby.

You will be able to enjoy entertaining at either dwelling, with the privacy of your own home, or guest-home, at the end of the day.

A Playroom or nursery
Having a nursery or playroom can be a great way to keep your children entertained. It can provide them with a place to play and explore. A playroom can also be an excellent place for your older children to hang out with their friends.

If you are working from home in your duplex, these rooms can help you save money, as you may be able to avoid paying the cost of child care.

Storage Space
A duplex can also be a great place to store your belongings. Duplexes have a lot of extra space which can be used for storage. This ensures you keep your home well-organised, de-cluttered and clean.

If you are using part of the duplex as a workspace, what could be more convenient than storing stock and tools in the room next door? If you have family possessions you don’t want to throw out, store them in an empty space, or room in your own duplex. You will not need to pay for a storage unit, and you will know your belongings are secure.

More living space for your family

Do you have a growing family with older children, or an elderly relative requiring a little care? Moving into your duplex will provide them with independent living while you will have the peace of mind of them living close by.

Ways to profit from a duplex as an investment property

Duplex  - Bed room

Most often, a duplex is built as an investment property. One of the best ways to enjoy an income from property, there are several options open to you, including:

Renting Out One Side and Living in the Other
One of the benefits of having a duplex is you can rent out one side and live in the other. This can be a great way to make money. It can also be a great way to save money.

From a single build, you have both a place to live and a place to make money. You should screen your tenants carefully, knowing they will also be your neighbours.

You will be able to avoid hiring a property management team, too. Set up a direct debit for the rent and agree on a schedule, with your tenant, for internal property inspections.

You will already be conducting external inspections whenever you go outside, plus you are easy to contact for those urgent repairs.

Renting Out Both Sides to Different Tenants
Maximise the return on your investment by renting out both sides to different tenants. This can be a great way to make money.

With the average rental return along the Central Coast at $500 – $600 per duplex, per week, if you have an interest-only building loan you could be generating a profit from rental income as soon as your tenants move in.

Duplexes – what may happen to prices in 2022?

Duplexes - Bath room

It is difficult to say exactly what will happen to duplex prices in 2022, as there are a number of factors with the potential to impact house prices. However, it is generally accepted house prices will rise in the long term.

Duplexes offer a more affordable option for those looking to buy a house; they are likely to be in high demand.

As we move into 2022, the Central Coast region is expected to see an increase in population growth. This is due to a number of factors, including the ongoing development of key infrastructure projects such as the NorthConnex tunnel and WestConnex motorway. This population growth will put upward pressure on house prices, as there will be more buyers competing for a limited number of properties.

In addition, the Central Coast is also set to benefit from the NSW Government’s $20 billion investment in regional infrastructure. This includes a new hospital at Gosford, upgrades to the rail network and a new university campus at Wyong. These developments will make the region more attractive to buyers, further driving up prices.

However, there are a number of factors with a possible impact on these prices.

Interest Rates – Lending interest rates are expected to rise over the next 12 months, which will make borrowing more expensive. This may deter some buyers from entering the market.

Coronavirus – there is still significant uncertainty around the impact of COVID-19 on the economy. This could lead to job losses and a decrease in consumer confidence, which would dampen demand for property.

Shortage of building materials – The global shortage of building materials is having a significant impact on the cost of building a duplex. The price of timber has increased by 20% in the past year, and this is expected to continue to rise.

This is due to a number of factors, including the increasing demand for lumber from China and the US, and the impact of the COVID-19 pandemic on global supply chains. This shortage is likely to lead to an increase in the price of Duplexes in 2022.

Shortage of skilled labour – The shortage of skilled labour in Australia is having a significant impact on house prices. Skilled labourers are in high demand and the construction industry is struggling to keep up with demand. This is driving up the cost of construction and, as a result, the cost of housing.

In some cases, the cost of building a new home has doubled in the last year. The situation is only expected to get worse in the next few years, as the population continues to grow and more people move into urban areas. This will put even more pressure on the housing market and prices are likely to continue to rise.

Duplexes are a great option for those looking to buy a new home, as they offer more space and flexibility than a traditional house.

Overall, Duplex prices are expected to rise in 2022, with the most significant increases occurring in areas set to benefit from population growth and infrastructure investment. However, interest rate rises and economic uncertainty could offset some of these price increases.

In conclusion

If you are considering building a duplex, don’t delay! Most experts agree house prices will continue to rise over the next few years. Build now to get the best price.

Acrow Investments are renowned house-builders in the Central Coast, Newcastle and Hunter Valley region. We have years of experience building beautiful homes for hundreds of delighted customers.

Don’t miss out, contact us today and ask about our amazing duplexes.

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