Read the latest news in Perth home building!

Is Building a 2 Storey Home a Good Long Term Investment?

In Perth first home buyers are opting to build two storey homes to take advantage of the smaller and more narrow lot sizes being developed by home builders across the city. Building a two storey home on a narrow lot allows buyers to maximise the amount of space inside the home while also allowing them space in the backyard to create an outdoor living area.

Whether you are a first home buyer or a well seasoned one, or even a property investor, when it comes to building a home you will be thinking about whether it will be a good and profitable long term investment. By taking a closer look at the suburb, demographics and outlook of the property you are interested in, we can determine whether building a 2 story home will be a good long term investment.


In high density areas such as those suburbs bordering on the CBD and those in the outer Northern suburbs of Perth, there has been an increasing trend towards building two storey homes. As population density increases, home builders are reducing block sizes, so one of the best ways to maximise space is to build up. For desirable suburbs with limited land available, building a two storey home makes for a sound long term investment.


One of the most important things to think about before building a home is who your market will be when it comes to either selling it in the future or renting out the property if you are an investor. When it comes to building a two storey home on a narrow lot, the demographics of the suburb play an important part in the future growth potential of the property.

Consider this. The suburb you are interested in is populated by baby boomers who have single storey homes on ample blocks of land. If you build your 2 storey home on the narrow block amongst these types of homes, will buyers in the future be attracted to your smaller, more efficient home or will they be swayed by the property next door? When looking to make a long term investment by building a 2 storey home, think about the suburbs populated by young couples and families who are active in the market for these types of properties.


In Perth two storey homes are gaining popularity to take advantage of the views that the property may have, whether it be by the coast or on land near to gardens or open public spaces. Building a second storey with the main living areas upstairs also makes the most out of capturing natural light.

Consider the investment potential of a single storey home close to the beach who’s view is overshadowed by the double storey home next door. While single storey homes are still very popular, two storey homes are looked at more favourably as they can get more out of Perth’s smaller narrower lots.

Have you been thinking about building a new 2 storey home? At Residential Building WA we specialise in two storey homes. To find out more about our two storey home ranges contact us on 9202 9202 or email us today.

27 Jun 2016