Not all local councils allow the building of duplexes, however if you’re looking to build in one that does, it’s a great way to add value to your portfolio, particularly if you’re in an area with fewer duplexes among freestanding homes and a consistent population growth.
Unlike subdivided land, a duplex maximises the potential of the land without additional holding fees, insurance costs, council rates and other associated costs, all while building equity and getting high returns on investment.
If you decide to have both properties rented, you can pick two income revenues and ultimately achieve positive cash flow and high-interest return over time. Duplexes often rent for a higher amount compared to apartments.
On the other hand, if you plan to live on one of the properties and have the other rented out, you can use the extra money to pay off your mortgage faster. Of course, that also means living right next to your tenant, which could present certain issues, including a lack of privacy and possible late-night calls due to a property emergency. It may help to set some ground rules like “quiet hours” to prevent conflicts.
Duplexes are usually valued for a higher resale price compared to traditional homes with a granny flat or a detached suite since potential buyers are essentially getting the benefits of separate homes with their own kitchen, bathrooms, entrance/s and utilities.
There are tax and financial implications that apply specifically to duplexes and other dual-income investments – we can help you with your research and decision making. Call us today to see whether a duplex home is right for you.