Long-term wealth accumulation can be made easy with both investing and rentvesting – a favourite strategy of many! Investing in property is an exciting way to ensure increased financial security, and the potential for greater rewards down the line is hard to ignore! It’s definitely worth considering if your goal is to grow your assets over time. So, why not give it a go?
For those new to real estate investment, house ‘hacking’ is gaining steam. Let’s face it: renting out a room in your home might be a great way to generate income and help pay your bills – who wouldn’t love that?
Before you decide if buying a duplex is the right move for you, let’s pause to consider some key questions.
What is a duplex
Ready to get the scoop on duplexes? It’s time to dive in and explore what they are all about! A duplex – a real unsung hero in the property world – is simply two homes in one. It’s a building divided into two separate entities, providing each family with its living quarters, kitchen and bathroom. Most duplexes share a common central wall or are split across different floors.
Plus, they usually come with shared driveways and outside spaces too! From a classic single-family home to a modern rental unit to multi-units, there’s something for every taste and style when it comes to duplexes – who said you can’t have it all?
Advantages of buying a duplex and renting half
- No doubt about it, buying a duplex, which is one of the property world’s unsung heroes, can save you some serious dough. Depending on the market, the purchase price might be cheaper than two separate mortgage payments for single-family homes – now that’s thrifty!
- Money flow: Duplexes are a great way to quadruple your income – it’s almost like owning a mini apartment complex! What’s more, you’ll even score some nice tax breaks to boot. Wow – talk about the gift that just keeps on giving!
- Rentability seems to be a popular pick for single folks and retirees alike as small, cozy duplexes are becoming increasingly favoured over traditional, large detached homes. With no yard maintenance to worry about and a cozy home-like atmosphere, it’s easy to see why!
- Uh oh! There’s a low risk of a duplex experiencing a full vacancy, thank goodness. That’d be a real blow, since – let’s face it – tenants don’t usually up and quit at the same time. Phew!
- Building up your portfolio? Absolutely brilliant! Double up your CASH flow and income options with a ‘two-for-one’ deal every time you score a duplex. What an awesome way to maximize the number of ‘doors’ in real estate!
- Wow, there are a ton of options for financing! Between conventional, FHA, and VA loans you should be able to find something that works for you. Even better, a 203(k) loan allows you to cover repairs with the mortgage. Talk about convenience! Financing just got a lot simpler.
- Maintenance is a breeze with duplexes – they’re so close together and super easy to take care of! It sure beats those huge houses that take forever to fix up.
- Property management is definitely a great way to save money and time! With no need for travel, renters can easily connect with a rental property manager who’ll provide top-notch efficiency. Hey, it’s a win-win – talk about an economical solution!
Cons of buying a half a duplex and renting it
If you’ve never shared a living space with others, a duplex may not feel ideal; there’s less privacy than in an apartment living. However, as a first-time buyer, opting for apartments would be ideal. It is perfect for feeling secure and keeping neighbour noise at bay!
You might also want to consider renting to family and friends, that way, at least you already have a relationship with your roommates.
Costs on the rise
If you had used your rental income to qualify for a bigger loan, you’d have to cough up higher monthly instalments! And to make matters worse, buying a pricier home means shelling out heftier property taxes.
And there’s the question many of us wonder—is rentvesting bad? And the truth is, it works for some but not for everyone.
Something you should know before renting out your home is how much you’ll shell out for utilities – and don’t forget to save up for those big-ticket items replacements like air conditioners, furnaces, water heaters, etc.! Of course, it’s no fun parting with all that money – but at least it’ll give you peace of mind in case something breaks down.
People also ask
Is a duplex in Australia a wise investment?
Make sure you’ve got enough dough to pay off your mortgage payment – and if you want to pay it down even faster, feel free to throw some extra cash in! Buying a duplex as an investment can do wonders for your debt – you can even generate rental yields of up to 7% or more. So why not give it a whirl? It could be the key to financial freedom.
What’s the difference between a villa and a duplex?
A duplex could never compare with a villa when it comes to privacy – one’s designed for two families. The other is strictly meant for one. Plus, since you can’t extend the floor plan in a duplex, they’ll always be a bit smaller than even your average apartment, let alone the spaciousness of villas.
What are the perks of living in a duplex?
A duplex is a perfect haven for anyone – with improved division and assignments as a bonus! You gotta make sure all repairs are taken care of, after all, you’re the landlord now with your leased-out section of the building. That puts you in charge; time to roll up your sleeves and get those patch-ups done!