Duplex Home & Land Package x 2, Purchase 1+1 = 2.2

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As covered in several other projects I have built most of the homes we owned following the 1+1 = 2.2 theory. If it doesn’t add value, then I don’t do it; I wait and find one that does. Why 2.2? Well, typical financing rules require a 20% deposit, so the 2.2 allows the opportunity to extract the 20% capital (deposit) we injected into the property should we wish to use it again for another project, and pay down non-tax deductable debt – or go surfing! (Now hang on, there’s taxation, banking & other rules that apply here, so please don’t take this carte blanch). Disclaimer over, so back to this project. This package was put together by a builder I knew, not to make the 2.2, but to generate building work for their construction business. You see, they commit to buy a block of land from the estate developer and create H&L packages, or in this case, a duplex to on-sell the land which would gain them a building profit doing their building thing. Simple and clever = win-win. This is more common than you think, and equally, if you think you must find a great deal and assemble the whole thing, you don’t. But you do have to know how to see, assess and quantify your profit based on your investigations and not the research or marketing!