If property investment has been on your mind for a while, and you’ve been doing some research into the market and the types of investment property available, one of the questions you may have already asked is: Is building a duplex a good investment?
A well-situated duplex development is an excellent investment if the piece of land meant for building your duplex is located in an area with consistently high demand. So, if you’re prepared to commit the time, energy and finance necessary to make your duplex investment succeed, keep in mind the following benefits await:
Even if it’s not your primary goal, investing in a duplex can provide additional funding for your mortgage. Depending on its location, build quality, current market conditions and other property fundamentals, you can build equity with a duplex.
Another option would be to rent out one or both units and receive monthly rental returns. You can even sign up with AirBnB and rent out one or both homes as vacation rentals with a higher rate.
By charging by the day or week, you’ll find it easier and faster to recoup the initial investment in acquiring or building your duplex property. Your long-term rental incomes can also be a supplementary source for your mortgage payments and other expenses.
If you envision yourself as a full-time real estate investor and are in it for the long haul, practising property ownership as a landlord is an excellent learning opportunity.
You can learn all about land costs, council rates, how to be a responsible landlord, and apply landlord-tenant laws in your state. You also get to experience customising lease agreements, screening potential tenants and collecting rent. This way, when you master the “trade” of buying a duplex and other types of property to rent out or resell, you would already have a fair idea of how the property market runs. This way, you have a better chance of succeeding in your ventures.
On a personal level, having a duplex means you can keep elderly relatives close by. For example, your aged grandparents or parents can be housed in one side of the duplex. For any reason or emergency, you’ll be there, ready and available to give them the love, support and care they need.
The same can be said if you have kids. With your parents around, you can attend to your work responsibilities and personal commitments without having to worry about where you can safely leave your kids. Also, being in the company of elderly members of your family is beneficial for the socialisation of your children.
By giving senior members of your family access to housing, they can defer having to live in retirement villages. If they are dependent on you financially, you can also save from having to rent another house or unit for them.
Building a duplex is no small feat. It entails research, careful planning, a lot of documentation, and it requires sizeable funding. However, when you get the fundamentals right and you exercise due diligence in all your dealings, there’s no reason why you cannot profit and benefit from it significantly.