Building a duplex gives you the best of both worlds. You have the opportunity to own a home and call yourself a homeowner. Then you have the option of renting out the other half of the house to earn a profit and call yourself a landlord. Or you can build both houses, live in one of them and sell the other one, or even build and sell both houses as an investment, which will guarantee a good profit to your pocket. Isn’t that clever and cool? So, what exactly is a duplex?
Duplex is a property that has two units for residential purposes in a single block on the land. These two homes are mainly divided using a single wall in between, but they are completely independent from each other, having their own entrance, yard and amenities. They can also be built front to back.
These duplexes could be sold under a single title, making them a much more affordable option. However, if the intention is to sell the houses separately, you can apply for a subdivision process with the help of High End Building and Developments, your dual occupancy/duplex home builder in Melbourne.
Advantages of Investing in a Duplex House
1. Instant Equity
Adding a duplex to a piece of property quickly raises its value. It could skyrocket once your duplex builder completes the project. This is referred to as “instant equity.” This gives you control over your portfolio and eliminates the need to wait for market capital growth.
Another factor that motivates people to build a duplex rather than buy one is the ability to customise it. You can choose every detail and modify the spec to maximise the return.
2. Solid Introduction to Real Estate
Building side by side duplexes can be very handy if you are willing to start investing in the property market, as you can live in one of the houses and rent the other one or you can either rent both to different tenants and have two rental income revenue. You could also use of one the houses as an AIRBNB and rent the space for other families.
3. Keep the family all together
If you are part of a big family and want to keep everyone close and living nearby, investing in a dual occupancy is the best deal. Having relatives living next door, especially if they are elderly relatives, can be extremely convenient and practical, as both parties can support and help each other when needed.
4. Keep the family all together
Another advantage of renting out a portion of your duplex is that the rental money may be used to pay down your mortgage much faster than if you lived in a single-family home.
Building a duplex is more expensive than building a single-family home, but not nearly as expensive as building two houses, so your expenses will be higher while your income will be higher. If you’re building a duplex as an investment property, you’ll get a faster return on your investment.
Building a duplex project and renting one or both units can help you to save money on construction costs by reducing stamp duty, holding fees, council rates, and insurance costs when compared to building two independent homes. It also helps you grow equity by increasing tax depreciation and promising a high return on investment.
On the other hand, if you choose to build a duplex project to sell both houses after completion, you will have to subdivide the property. Costs associated with this process are affordable and you can still sell each property for a considerable and higher price and make a good profit within 12-18 months.
In both perspectives, you should choose High End Building and Developments, your duplex/dual occupancy builder in Melbourne, and we will be ready to help you in each stage of this process.