The Top 6 Benefits of Owning a Duplex
Are you looking for a new home? Or maybe youre searching for the perfect investment property to help you generate some additional income.
Youve probably looked at plenty of single-family homes, townhouses, and condos, but have you considered a duplex? These residential properties are made up of two separate homes and provide owners with a number of benefits.
Here are the top six reasons to purchase or develop a duplex.
Despite consisting of two homes, duplexes are surprisingly affordable. Many homes that utilize a duplex design are located in suburban neighbourhoods, meaning theyre often cheaper than other types of residences, such as condos or townhouses. This makes them perfect for first-time homebuyers who are on a smaller budget.
Potential Rental Space
This is possibly the biggest benefit of owning a duplex. If you plan on living on the property you can rent out the other side to earn some additional income. And if youre purchasing the duplex as an investment youll be able to rent it out to two different tenants instead of just one, resulting in more rental income.
Minimize Your Mortgage Rates
Because youre able to rent out one or both units you can use the rental income to help pay down your mortgage. For example, lets say you purchase a duplex with a mortgage of $1400 per month. If you choose to live on one side and rent out the other for $700 a month youve just cut your mortgage payment in half. Or if you rent out both sides for $700 your mortgage will be completely paid for.
Plus, because mortgage companies consider duplexes to be a single property, homeowners are usually given lower interest rates for them. This, combined with the rental income, means you could potentially pay off your mortgage a lot sooner.
If you choose to rent out your duplex and make it an income property youll be able to deduct certain home expenses from your taxes. This can make it a lot cheaper to maintain your home. It can also offset the costs of any repairs that might need to be made in the future.
Have a Place for Family to Stay
Do you have family members who are elderly, have special needs, or just need a place to stay? A duplex gives you the ability to offer them a safe and affordable housing option. And because youre right next door you can be there to assist them with whatever they need and can help them in the case of an emergency.
Own Two Homes Instead of One
Duplex homes allow you to get the most out of your land, since youre essentially getting two homes for the price of one. You can rent the property to two separate tenants, and because its divided into two single title homes you can sell each side separately. This gives you the opportunity to double your return and earn a lot more than you would have with a single-family home on the same property.