Should I Invest in a DUPLEX
Duplexes have grown in popularity and share similarities with semi-detached homes. Typically modern iterations of semi-detached residences, duplexes comprise two dwellings united under one roof with a shared wall.
While built on one property, the homes can have separate or joint ownership titles. The dual residences feature individual entrances and amenities, usually structured as side-by-side units of one or two stories.
Owning a duplex provides opportunities. The cost of purchasing a duplex often equals slightly above half that of a standalone house. This gives buyers priced out of the single-family home market a chance to buy into a property with a higher land value.
Additionally, collecting two rental incomes from one asset generally yields higher returns than renting a house.
Constructing a duplex also proves more affordable than building two separate units, with cost savings from sharing one roof, frame, and foundation. The streamlined building process also takes less time.
Duplexes provide tenants with more space than townhouses and apartments, making them attractive to renters with families and pets.
The side-by-side structure also affords more privacy than front-and-rear duplexes, where units pass each other's bedrooms and common areas.
The modern style of most duplexes also suits tenants wanting a low-maintenance, lock-and-leave lifestyle.
While duplex owners pay one insurance policy covering both residences, they avoid the strata fees associated with apartments.
Potential Drawbacks
Since developers often construct duplexes with up-to-date amenities, extensive renovations prove challenging. The optimised floorplans leave little room for structural changes or upgrades.
The modern builds also command higher rents, which tenants may view as unreasonably high compared to older standalone houses.
Some renters may choose more dated single-family homes for slightly more money.
Lastly, the compact nature of duplexes cannot accommodate tenants seeking more spacious accommodations.
Key Takeaways
Duplexes provide an affordable entry point into the property market while generating higher rental yields. However, renovation potential remains low, and the small footprint limits prospective tenants. Weigh these factors when considering a duplex investment.
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