This article will discuss why you should buy a duplex. A duplex is a large divided townhouse.
These two divided units share a boundary known as the dividing wall that splits the two houses. This is known as having a dual occupancy even though they are the same building, they are technically a separate home with they own bathrooms, bedrooms, kitchen, garage, backyard, entrance and front lawn.
It is possible to have these units on separate titles or single titles, this means that it is possible to sell the units together or separately.
The division of the duplex legal titles is a common choice as investors have put money upfront and want to see an inflow of cash fairly quickly, so keeping one for rent and selling the other is a common practice.
It’s also common practice to refinance them as upon valuation you’ll see a significant increase in equity.
Building a duplex will achieve a good valuation from the bank, creating instant equity which can help you take out more finance to build more properties. Essentially accelerating your goals.
You should buy a duplex because they are a great source of income potential. Duplexes are ideal for diversifying your rental portfolio and getting in regular sources of rental income. They also appreciate in value fairly quickly as they are becoming popular in outer CBD areas.
Duplexes are very advantageous to owners because they add a lot of natural light and effectively double your rental income. It’s a fantastic investment option. If you have land and wish to build a duplex, you should take the leap and do it. For the price of building a luxury home, you could build a duplex and double your rental income.
The only thing you have to take care of is maintenance, insurance and the interest payments on your loan.
Using a land and construction package is a fantastic way to take advantage of your house purchase options. The value of your property will increase fairly quickly upon completion of the build. This kind of equity is known as “instant equity”, whilst is a theoretical, if you do decide to sell then you are likely to see a valuation reflecting the sum of instant equity.