With the housing market in Australia become increasingly difficult to tap into, cheaper and more cost effective housing alternatives are becoming more popular. The duplex is often an overlooked option despite the perks associated with dual living – not only as a cheaper living alternative but also as an investment opportunity.
What is a duplex?
A duplex is 2 houses within the same property that share a common wall. A duplex will have its own driveway, garage, front and backyard as well as everything else included in a conventional detached house and can be sold together or as 2 separate houses. Duplexes make a great option for first home buyers looking for the space of a standard house without the skyrocketing price tag. They are also a great idea for people looking to invest in the residential platform – duplexes offer the potential for 2 separate rental incomes from the same property. They also offer a great alternative to people looking to downsize without willing to sacrifice on the luxury of some yard space.
“ They are also a great idea for people looking to invest in the residential platform – duplexes offer the potential for 2 separate rental incomes from the same property.”
- Price: The main benefit of a duplex is definitely the price tag. Duplexes can be purchased for up to half the price of a conventional detached house.
- Dual Living Opportunities: Duplex’s make a great alternative to a granny flat – they offer the same financial benefits with the addition of completely separate housing facilities.
- Security: In comparison to apartment living, duplex’s have only 1 adjoining neighbour, which offers great security benefits.
- Rental Income: Duplex’s offer a huge boost to rental income! As they can be privately owned, there are no extra Body Corporate Fees.
- UpKeep: There is minimal garden upkeep, while still having the luxury of private yard space
- You Own the Land: Duplex’s offer greater capital gain advantages vs an apartment which has no land.
- 1. Proximity to Neighbours: While having close neighbours offers great security benefits, that comes with the cost of having your neighbours in very close living quarters with you.
- 2. Home Insurance: A major con to duplex living is in regards to home insurance, you would need to agree on a policy that works for both parties, in ensuring cover for the entire property.
- 3. External Renovations: In some cases, any major changes to the external appearance of the property would also need to be approved by both parties.
- 4. Smaller House: Although a duplex offers everything a detached house offers in terms of kitchens, bathrooms and bedroom – the luxury of the extra space is sacrificed.
- 5. Close to Tenants: If you are looking to rent out the other half of your duplex, keep in mind that your rental tenants will be in very close proximity to you. Or if you are thinking about being the rentee- your landlords will be next door 24/7…
Whatever your buying or investing opportunities, do your research. There is a perfect living solution for every person’s financial capabilities. Whether it is a standard house, duplex, granny flat or apartment, make sure the space is the right fit for you and your family.