Building a duplex can be a great investment opportunity for those looking to generate rental income or those wanting to live in one unit and rent out the other. However, the cost is one of the most important considerations when building a duplex.
Building a duplex can vary depending on several factors, such as location, size, materials used, and labour costs. It is essential to clearly understand these factors to accurately estimate how much it will cost to build a duplex.
This article will provide everything you need to know about building a duplex, from what it is to the average costs.
What’s a Duplex?
A duplex is a residential building consisting of two separate living units with a common wall. Each unit typically has its entrance, kitchen, living area, bedrooms, and bathrooms and may be occupied by different tenants or family members.
Duplexes can come in various sizes and styles, ranging from small units with just a few rooms to large, multi-story buildings. They can be attached or detached and built as townhouses, apartments, or standalone homes.
Duplexes are often used as investment properties, with owners renting out one or both units to generate rental income.
Duplexes are a popular housing option for many reasons. For one, they offer flexibility and privacy that is not always available in other multi-unit buildings. Since each unit has its separate entrance and living space, tenants or family members can enjoy a sense of independence and autonomy.
From an investment standpoint, duplexes can be an intelligent financial decision. Owners can generate a steady stream of rental income by renting out one or both units to help offset the property’s costs. Moreover, duplexes can offer tax benefits and may appreciate over time, making them a valuable long-term investment.
Costs of Building a Duplex
Building a duplex in Australia can vary widely depending on location, size, materials, and labour costs. However, the average cost to build a duplex in Australia can range from $550000 to $1.3 million.
This cost estimate includes the construction of both units and typically includes expenses such as site preparation, materials, labour, permits, and fees.
The cost of building a duplex can also be influenced by the level of customisation and design features included in the project. For example, a duplex with higher-end finishes and features will likely cost more than a more basic, standard model.
Regional and local market factors can also impact the cost of constructing a duplex. Here’s a breakdown of how much it costs to build a duplex depending on the location:
- Melbourne: around $650,000 and $1 million
- Sydney: from $600,000 to $1.2 million
- Canberra: between $550,00 and $1.1 million
Keep in mind that if you have land that has property and you want to build a duplex, you must demolish the old property first. The price of demolishing a building ranges between $12000 and $40000, while the average cost of building a duplex and demolishing old property ranges between $560000 and $1.33 million.
Duplex Homes Types
There are several types of duplex homes, each with its unique design and layout. Some of the most common types of duplex homes include:
- Single-story duplex: This type of duplex is designed with both units on a single level. Each unit has a separate entrance, and the two units may be connected by a shared wall or be completely detached.
- Two-story duplex: A two-story duplex consists of two separate units stacked on each other. This duplex type is often built on a smaller lot and can be a more cost-effective way to maximise space in urban areas.
- Side-by-side duplex: In a side-by-side duplex, both units are designed to be located side-by-side with a shared wall. Each has a different entrance, and the two units may be identical in size or feature different layouts.
- Battleaxe dock duplex: In this type of duplex, one dwelling is located behind another.
Factors that Influence Duplex Construction Costs
1. Location
The cost of land varies widely depending on the location. In some areas, the land is relatively inexpensive; in others, it can be costly. This can significantly impact the overall cost of building a duplex.
The location also influences labour costs; in areas where the cost of living is high, labour costs are often higher. In addition, some areas may have a shortage of skilled labour, which can increase labour costs.
Building codes, zoning regulations, and permit requirements can vary from location to location. In some areas, obtaining permits and complying with regulations can be more expensive and time-consuming than in others.
When seeking a suitable location, bear in mind the following:
- Look into the local real estate market to determine if there is demand for duplexes and if rental rates are competitive.
- Look at the area’s demographics, such as the age and income level of residents, to determine if there is demand for rental properties like duplexes.
- Consider the area’s location in terms of proximity to amenities like schools and shopping centres.
2. Labour and Construction Material Costs
The price of materials for duplex construction can vary widely depending on factors like the materials’ quality, project size, and location. Some materials required for duplex construction include lumber, concrete, roofing, windows, doors, plumbing, electrical wiring, and HVAC systems.
The price of these materials can fluctuate based on supply and demand, transportation costs, and market conditions. Additionally, using higher-quality materials may increase the overall project cost but can lead to better durability and increased resale value.
Labour cost is influenced by factors such as project location, the experience and skills of the labour force, and the size and complexity of the project.
Labour costs vary widely based on the region—areas with a higher cost of living may have higher labour costs. Also, the labour cost will be higher since there’s a shortage of skilled labour in Australia.
3. Building Size
Generally, the larger the building, the more expensive it will be to construct. Larger buildings will require more materials than smaller buildings, which can increase the cost of construction. Larger buildings also require more labour to construct, which can increase construction costs.
Larger buildings also require more utilities, such as electricity, gas, and water, which can increase the ongoing operational costs of the building. While a larger building may provide more living space, it can also significantly increase the cost of construction.
Work with a professional contractor or architect who can guide balancing the desired building size with the available budget.
4. Architects and Contractors
Architects are responsible for designing the duplex and creating the plans and specifications that the contractor will use to build the structure. The more complex the design, the more time and effort it will take for the architect to create the plans, increasing project costs.
The architect’s choice of materials can significantly impact the project’s cost. Higher-end or specialised materials may be more expensive, and some may require additional preparation or installation costs.
Contractors are responsible for the construction of the duplex and will provide a quote or estimate for the building cost. Some contractors have established relationships with suppliers and can obtain materials at a lower cost, which helps to reduce the overall project cost.
Advantages of Constructing a Duplex
- Building a duplex allows you to generate rental income by renting out one or both units.
- Building a duplex means that you will share maintenance costs with your tenant(s), potentially reducing your overall expenses.
- Offers privacy for individuals who live in multi-family houses.
- Duplexes are ideal for individuals just dipping their toes in real estate investment.
- A well-built duplex can increase the property value, providing a return on your investment if you decide to sell.
Disadvantages of Building a Duplex
- Not all local councils let people construct duplexes
- Duplexes must be constructed on an appropriately sized block
- You need the right zoning for subdividing
- You’ll be too close to your neighbours
- You require your neighbour’s approval before you make renovations
Final Thoughts
The cost of building a duplex in Australia can vary greatly depending on property location, building size and design, and the materials used. While estimates can range from $500,000 to $1 million, it’s important to note that these figures are general.
The best way to get an accurate estimate of duplex building costs, consult with a professional who can provide a detailed quote based on your specific needs and preferences.
With careful planning and attention to detail, building a duplex can be an excellent investment for those looking to generate rental income or provide separate living spaces for family members or tenants.
Frequently Asked Questions
1. Is building a duplex more expensive than building a standalone home?
No, building a duplex is cheaper because the land required to construct a duplex is smaller, and you save cash on land costs. Moreover, duplexes are cheaper in urban areas and premium suburbs.
2. What is the process for building a duplex in Australia?
Building a duplex in Australia typically involves several steps, including obtaining necessary permits and approvals, designing the building, and coordinating with builders and contractors to construct the structure.
3. Are there any specific building codes or regulations for duplexes in Australia?
Yes, each state and territory in Australia has its building codes and regulations for duplexes and other types of residential buildings. It’s essential to consult with local authorities and building professionals to ensure your project meets all requirements.
4. How long does it typically take to construct a duplex in Australia?
The timeline for building a duplex can vary depending on the project scope, material availability, and other factors. Generally, building a duplex can take anywhere from six months to a year or more.
5. What are some financing options for building a duplex in Australia?
Financing options for building a duplex include traditional home, construction, or equity loans. It’s essential to consult with a financial advisor or lender to determine the best option for your specific needs and financial situation.