Investing in Duplex Properties
Duplex properties are one of the best investments that homebuyers can make, especially if it is a first time buy. The beauty of investing in a duplex property is that even though you might be paying a little more to purchase this property than a single family home, the return will be much greater.
You might be wondering how this is possible. Since a duplex has two living areas, you can rent out one of the units while living in the other. This allows you to reduce your payment costs and even cover your entire mortgage in some cases. Not all duplex property investments turn out the same but if you are able to set the right price and have long term contractual commitments, then investing in Duplex properties is a wise financial move.
Paying Off Your Mortgage and Creating Income for Yourself
Within a few years, the rent that you receive from your tenants will most likely cover a good portion your mortgage repayments. Once this is paid off, your duplex will then become a great way to profit from your property as extra income. If you have the chance to purchase another property, then you can double your income by renting out the second unit. The reason why this is a smart move for first time buyers is that you will essentially be the owner of the duplex but you will not have to pay off your own property; someone else will do it for you. You just need to put down the initial investment.
The Problem with Investing in Duplex Properties
The problems with investing in a duplex property are rather minimal and only become problems with your personal situation. If you will not be staying in your duplex, you might not find this investment as worthwhile. You will have to cover any duplex payments on top of your other living arrangements. In the case that you cannot find two renters, it may be much more difficult to cover your costs and make a profit. Although some duplexes can create immediate cash flows, some will take months or years to prosper.
The Desirability of Duplex Properties
Duplexes are normally much more desirable than other types of living accommodations because you really are having someone help pay for the cost while continuing to be the owner, while also making a great investment for the future. A duplex will cost more than a single family home but much less than building properties such as an apartment building. In the long term, a building with more units is more profitable despite a higher price but it is also much more responsibility. If you are looking for an investment that gets you started as a landlord, then investing in duplex properties is a wise investment.
National Builders Group are leading home builders in Melbourne and throughout Victoria. We have over 200 new house designs for you with the flexibility to change our floor plans to suit your needs. National Builders also offers duplex house designs for investors.
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