Duplex Real Estate Investments
So you’ve recognised the benefits of adding duplex real estate investments for your property portfolio. Now you need to research the area – and you need to choose a location for your duplex development with expected growth.
This does not including mining towns. Mining towns are reliant on industry in the region so, if you buy in a mining town, it’s either boom or bust. And when the work dries up, so do the tenants.
Vacancy rates become high and rents go down considerably – and so do property prices. Your once positive cash flow property becomes a negative cash flow property. If you ask any accountant they will have a horror story to tell you about a client who bought in a mining town. There are investors who have made great profits from mining towns, but they were clever enough to know when to get out – they had an exit plan.
Property is unlikely to double in price every seven to ten years like it did in the 1990s and early 2000s, so buying investment property strategically is now very important.
A region needs to be researched extensively as all markets are driven by demand.
If government is spending millions of dollars on infrastructure, that’s a significant indicator that the region is progressing and expanding.
Private industry drives employment and makes up the blue collar, white collar and service-based industries. This must be measured in order to gain an accurate assumption of where the jobs are going to be, as this provides the income a growing community needs to ensure solid growth.
Is the population on the increase or decrease? Population increase is a key sign to sustain demand and growth in property.
Best Location To Buy Duplexes?
If you look at the Sunshine Coast as an example location for adding duplexes as real estate investments in your property portfolio, it ticks all the boxes for federal spending, industry and demographics.
To learn more about how Vizion Group researches its duplex development projects, go to our home page, and request our Step by Step Guide to Duplex Property Investing eBook.
About Vizion Group Qld
With over 20 years experience in real estate investments Paula & Denis Harris and Tracy & Rudy Drent came together with the goal of helping others with a key focus on positive cash flow properties for the first time investor or for the experienced investor looking for that unique asset that complements any portfolio.