When it comes to duplex investing, the cheapest price upfront is rarely the cheapest in the end.
It is easy to compare builders based on the sticker price and select the lowest number. However, that initial figure often does not tell the whole story.
A low base price can quickly increase when planning contributions, site costs, provisional sums and essential finishes are added during the project.
For investors, the most important question is not simply which builder has the lowest quote.
It is whether the price is transparent, complete and reliable from the beginning.
Look for Genuine Pricing Transparency
The first thing investors should look for is a company that is open and transparent about its pricing.
It is common for builders to present a low base price and then add upgrade after upgrade once the project is underway.
At RPG, we take the opposite approach.
We provide customers with a fixed price that we hold from the start. This means the financial risk sits with us, rather than being passed back to the investor later.
That is the way it should be.
The Costs That Can Be Left Out
Several major expenses may not be included in an initial duplex development quote.
Planning Contributions
As an example – in some areas of the Shoalhaven, planning contributions can be around $55,000.
When this amount has not been included or clearly explained at the beginning, it can significantly change the investment numbers.
Unexpected Groundworks
Another example: During a recent RPG duplex development, we unexpectedly encountered rock that cost approximately $20,000 to remove.
Because the project had a fixed price, RPG absorbed the additional cost.
RPG customers are not asked to find another $20,000 halfway through the investment.
Provisional Sums and Prime Cost Items
Provisional sums and prime cost items are allowances rather than guaranteed final costs.
They may make an initial quote look attractive, but these amounts can increase once the project begins.
A genuinely fixed price provides investors with much greater certainty than a quote that depends heavily on allowances.
What Is Included in RPG’s Turn-Key Price?
RPG’s fixed price also includes the turn-key finishes required to make the investment tenant-ready.
These can include:
- Fencing
- Landscaping
- Window coverings
- Clothes lines
- Driveways and external finishes
- Air-conditioning
- Soft-close drawers
- Stone benchtops
These inclusions help ensure the completed property is ready to compete in the rental or resale market.
A quote may appear cheaper simply because many of these essential items have been left out.
The Risk of Waiting for a Final Price
Builders using the standard Development Application process may not confirm a fixed price until planning is complete.
This can take between 6 and 12 months.
During that time, the cost of a duplex development could increase by approximately $100,000 to $150,000.
That increase may affect the investor’s finance approval, borrowing capacity and original investment calculations.
With RPG, the fixed price is locked early, helping remove this uncertainty.
Know Your Numbers From the Start
The best financial outcome does not always come from choosing the lowest headline figure.
It comes from transparency, certainty and knowing the complete numbers before committing to the project.
RPG’s fixed, all-inclusive pricing is designed to give duplex investors that level of control from the very beginning.
Speak with RPG to learn more about our fixed-price, turn-key duplex investment process.
