For many property investors, building multiple home units on a single block is not usually the first option. The reason why this is so is that a good number of investors and homeowners are not aware of the benefits that comes with building such properties. It is with this information that we’ve opted to share with you this building duplexes post. In particular, we’ll be looking at why investors look to build duplexes.
What Are Duplexes?
Before looking at why you should look to take up this investment project, let’s first understand what they are.
So what are they? Well, they are residential buildings that of two homes/units. These units normally share a common central wall. Furthermore, they do share a single block of land where the two units are on.
Building this type of property has for years now proven to be a solid investment. Thanks to the two units investors stand a chance of benefiting from high rental yields for low prices. Additionally, they are known to produce strong growth value growth.
Why Investors Build Duplexes
To better answer this will focus on the following key points;
- Increased Mortgage Funds
- It’s Perfect For Beginners
- Increase In Revenue
Increased Mortgage Funds
High on the list of reasons why investors take up this property investment is to increase mortgage funds. So how do they help increase mortgage funds? Well, with them you can easily generate a high rate of return (ROR). You can choose to rent out one of both units on a monthly basis and achieve a high return. For this to happen, however, make sure you put it in the market for the right price. You can use the rental income to pay off your mortgage quicker.
It’s Perfect For Beginners
If you are new to property investment, you should consider starting out your journey with a duplex project. As a first time investor, you can build a duplex and live in one unit while renting out the other. This way, you’ll be able to learn so many things about property investment. This includes things like landlord-tenant laws, collecting rent, screening process, customizing lease and so on.
Increase In Revenue
Thanks to the introduction of AirBnB, investors can easily increase their revenue. How? Well, investors can furnish up one or two of their units and use them as vacation rentals. The best thing about this is that one can opt to rent it out per night or per week. Furthermore, you can rent out spare or individual rooms in your duplex. What all these results to increase in revenue.