Are Duplexes a Good Investment?
As a property developer, understanding the full scope of costs and potential profits is essential when deciding on a new project.
In fact, one of the most lucrative and efficient property types for developers today is the duplex.
However, building a duplex involves numerous moving parts and costs—from construction to subdivision, and everything in between.
In this blog post, we’ll explore why building a duplex with TAG Homes is the smart choice for developers, how we handle the subdivision of your project, and how our turn-key package ensures that you’re in control of costs and profits from start to finish.
Why Build a Duplex as a Developer?
Before diving into specifics, let’s look at why building a duplex can be such a smart choice for developers.
1. Maximised Use of Land
A duplex allows you to build two separate homes on a single plot of land. This means you’re effectively doubling the potential of your investment, making it a cost-effective way to increase your return on property. In high-demand areas, duplexes provide an excellent opportunity to develop underutilised plots and generate significant revenue.
2. Broader Market Appeal
Duplexes cater to a diverse market. Whether it’s young families, downsizers, or investors seeking rental properties, duplexes are a versatile solution that appeals to a wide range of buyers or tenants. This broad market appeal makes it easier to sell or rent your property, minimising the time on market and maximising returns.
3. Higher Rental Yields
For developers looking to create income-generating properties, duplexes offer excellent potential for rental yield. With two separate units, you can generate more income than a single-family home, making it an attractive option for investors seeking high rental returns.
4. Faster Construction and Lower Costs
When building a duplex, many of the construction costs can be shared between the two units. Shared walls, common infrastructure (like plumbing and electricity), and combined materials can help reduce the overall cost of construction. In addition, building two homes at once typically results in a faster build time, allowing you to bring the project to market sooner.
Your Next Duplex Construction Partner
At TAG Homes, we specialise in building duplexes.
But we don’t just build homes—we provide a comprehensive, turn-key service that ensures every aspect of your duplex development is professionally managed.
Here’s how we set you up for success:
1. Understanding All Costs Involved
One of the biggest challenges for developers is managing costs effectively. Building a duplex isn’t just about construction—it involves land acquisition, permits, design, labor, materials, and often the subdivision process. TAG Homes has years of experience in duplex construction, so we know exactly what to expect and can help you plan for every cost involved. Our team provides detailed, transparent quotes, so you can have a clear understanding of your project’s financial requirements.
We break down every cost, including:
Knockdown
Site preparation (land clearing, grading, etc.)
Labor and materials
Building permits and fees
Utility connections (water, sewer, electrical)
Design and architectural costs
Landscaping and finishing
By understanding all costs up front, we help you avoid surprises and give you full visibility into your potential return. This allows you to make informed decisions and ensure the financial success of your project.
2. Expert Management of the Subdivision Process
In many cases, building a duplex involves subdividing the land into separate titles for each unit. Subdivision can be complex, requiring knowledge of local zoning laws, building codes, and the approval process. TAG Homes manages the entire subdivision process for you, from start to finish, ensuring that everything is done legally and efficiently.
We handle:
Zoning and planning applications
Land surveyor coordination
Subdivision approval processes
Infrastructure planning (such as driveways, drainage, etc.)
Legal documentation and registration of new titles
By overseeing the subdivision process, TAG Homes ensures that your duplex project is compliant with local regulations and set up for long-term success.
3. Turn-Key Package: From Concept to Completion
One of the most significant advantages of working with TAG Homes is our turn-key package. We offer developers a complete, hassle-free solution that covers every stage of the project. From the initial concept and design to construction, subdivision, we manage it all.
Our turn-key service includes:
Design and Planning: We work with you to create a custom duplex design that meets your vision and complies with local building codes.
Permits and Approvals: We handle all the necessary applications, permits, and approvals to ensure your project moves forward smoothly.
Construction: Our experienced in-house team handles all aspects of construction, ensuring that your duplex is built to the highest quality standards, on time and within budget.
Subdivision: We manage the subdivision process, ensuring each unit is appropriately titled and that infrastructure is set up for independent use.
Finishing Touches: From landscaping to final touches, we ensure your duplex is move-in ready, whether for sale or rental.
This end-to-end approach allows developers to sit back and focus on their business while we take care of the details. With TAG Homes handling every aspect, you can have peace of mind that your project is in capable hands.
4. Understanding Your Costs and Profits
Our turn-key package isn’t just about convenience—it’s also about ensuring that you have a clear understanding of your costs and profits throughout the development process. We provide comprehensive financial forecasting, so you know exactly how much you’re investing at every stage and what kind of return you can expect.
We offer:
Detailed financial breakdowns: Full transparency on costs, potential rental income, and sales value.
Profit forecasts: We help you understand your potential return on investment, factoring in all costs.
Risk management: By managing the entire project, we reduce the risks associated with budget overruns, delays, and unforeseen costs.
With TAG Homes, you can move forward with your duplex project with confidence, knowing that your financial expectations are realistic, and your profits are maximised.
Wrapping Up…
Build with Confidence with TAG Homes
Building a duplex can be a highly profitable venture, but it requires careful planning, expert management, and a deep understanding of all associated costs.
With TAG Homes as your partner, you can rest assured that your duplex development will be managed efficiently and cost-effectively. Our team of specialists ensures every aspect of the project is taken care of—from design and construction to subdivision and final sale—so you can focus on maximising your profits.
If you're ready to start your next duplex development, contact TAG Homes today.
Let’s build your next project together, with confidence.