Is it worth building a duplex?
Let’s define what a duplex is before we get started. A duplex is simply a single site that has been subdivided into two residences. Each side of a duplex is a self-contained unit featuring a unique driveway, entry, and garden. Sometimes the duplex can be attached or even detached. Let`s explore is it worth building a duplex?
Duplex’s offer homeowners or investors several benefits which include increased profits of resale, increase rental returns, decreased loan pressures by leasing out the second unit. Duplexes are great investments that are beginning to get more spotlight.
Here are five great reasons to consider getting a duplex house built for you.
1. Duplexes can be great investment properties
In 2016, one investor made a whopping $1 million profit after selling a duplex house they had built. The land was purchased for $620,000 in Kellyville. Building both duplexes cost another $600,000. After 12 months of work, the duplex was appraised and sold at $2.2 million dollars – earning the investor almost 1 million profit.
2. Earn a second salary by renting out the other unit
If you opt to live on one side of the duplex while renting out the other, you can earn a second income passively. It’s always great being able to make a little extra ingoing income from your project. Another idea is listing your other unit on Airbnb under the tag ‘duplex living’ if you have built a duplex in the desired area. Get premium offers from vacationers looking to rent out a full-house.
3. Build equity and trade it off to buy another property
Building equity in your duplex is another great initiative that will enable you to get more loans to buy more property. With enough equity, you can approach a bank for another loan to invest in another real estate venture. Increase your real estate portfolio through the careful and deliberate management of your duplex.
4. Keep elderly family members close by
As parents and other family members get older, they might not fancy the idea of going to a nursing home or retirement home just yet. Having a duplex will be a great way to keep them close to you while also giving them enough space to remain independent. This is particularly true if you’re the only one there to help your senior parents or relatives.
5. Pay off your mortgage in record time
The majority of people building homes in Australia take out financing from the bank for their home building project. Getting a duplex built and renting out the other unit helps you to offset the mortgage and reduce the loan duration greatly. The faster you can pay off the mortgage, the sooner you can get started on building equity.
Things to note when duplex building
How much is it to build a duplex? Does this depend on a variety of factors such as do you already own the land on which you wish to build the duplex? Is the site already prepared? How complex or simple do you wish your duplex to be?
Do you want a single storey or double-storey duplex? A good figure to keep in mind is $1500 – $1800/m2 which is the average construction cost of a duplex.
Others also ask, can I build a duplex on my land. You will be able to so long as your land has the necessary building zoning for duplexes which is usually R3 and R4. If you’re not sure about this, you can check with your local council.
Are you ready to get started with duplex house plans? Contact us for more information.
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