Are you looking to build a brand new home? Want to improve your cash flow at the same time? A duplex may be the answer you have been looking for.
What is a duplex?
A duplex is simply what the name implies, a single lot designed for two households. Duplexes are usually a single structure that share a common wall or separated into two stories.
Although duplexes can make profitable investments as pure rentals, a lot of prospective duplex buyers look for properties where they live in one unit and rent out the other. By purchasing a duplex pair you are essentially buying two homes. With only one block of land for two homes, the total price of owning two income producing properties is reduced.
Your options are:
- Rent out both
- Live in one, rent the other
With modern family dynamics changing it is an increasing requirement for larger families to co-exist in the one premises while still maintaining their own space.
If you are interested in purchasing a Duplex, make sure you develop a strategy on what you want to achieve.
Double Your Return:
If you want to improve your cash flow, a duplex provides a dual income for the cost of a single piece of land. Determine if the area meets your strategy in terms of capital growth or rental yield. Find out if duplexes are selling and renting well in the suburb.
Engage with one of Hyland’s mortgage brokers to check if it is within your borrowing capacity. If proceeding, make sure to use a property manager to keep it tenanted and effectively managed.
Double Your Budget:
If you are want to live in one unit you can benefit from the other unit providing additional income. The monthly rent from the second unit can help you pay down the mortgage. If you want to grow your portfolio, the additional income can also be applied towards qualifying income which helps secure even larger mortgages. This is a powerful way to leverage into buying a bigger property.
If you’re renting one half, you’re also able to claim more in tax deductions as some items will be shared across your home and the rental property. When it comes time to sell, you will have two properties to offer the market by selling each duplex individually. A single duplex is often cheaper than a single house, so they’re quite popular in today’s property market.
Contact Hyland today to see what duplex options are available. We will help you achieve your financial freedom:
Hyland makes it easy to invest in property. We will guide you every step of the way.
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