If you’re looking into building your home and not buying, there’s a great investment opportunity that can help you maximize the potential of your land – building a duplex home. Basically, this type of home design contains two separate living units and entrances that provide for two separate households, but all within one dwelling. It essentially means that you get two homes at a price of one, a practical living solution, large financial gain and investment potential. Obviously, there are many perks and benefits to this situation, so here’s an outline of several of them.
Tax and mortgage benefits
By owning a duplex and living in one side only, you have the option of writing off that side. However, if you rent the other part, you get additional write-offs, such as fees accrued to rent and managing the place. All of those costs are tax deductibles including the repairs to the rented half and its utility bills.
Properties are usually classified as owner occupied and non-owner occupied by the mortgage lenders and more favourable interest rates commonly go to a property that is lived in. A duplex is considered as one unit property, so you can qualify for a lower interest rate if you occupy one of them. If you rent the other one and include it in your income, you can get even a larger mortgage that you wouldn’t have received otherwise.
Building your own home gives you vast opportunities when it comes to choosing its design. It sure is fun and exciting but it can also be quite an overwhelming experience as there are so many different builders and floor plans to choose from.
If you’re an Australian resident and have firmly set your mind on owning a duplex, consider collaborating with contemporary home builders in Sydney who offer a holistic approach to designing your perfect home. With a project so serious and comprehensive, you’d want to have the best possible team on your side that can deliver a concept from its beginnings to full realisation so it suits your specific needs, lifestyle and taste.
Owning a duplex home also opens the doors to lease opportunities. As a landlord, you get an excellent chance for a great side business and a passive income. The perks are great: you live right by your rental property, you can oversee the place every day and do any necessary repairs and you get to keep a close eye on your tenants and make sure there’s no funny business going on, all without invading their privacy.
However, before you decide to rent, make sure you get familiar with lease laws in your state and the ways of collecting rent. Furthermore, the rent should cover interest payments, insurance and taxes so keep that in mind when deciding on the amount.
Also, there’s another attractive option to research: renting your duplex through a vacation rental site. It might be a great choice as it allows you short-term leases so you can charge more as vacation renters are ready to pay extra for a full apartment rather than a single room.
Wider range of options
Depending on your current stage of life, with a duplex home, you can have different options and the choice is completely up to you: occupying one and renting the other part, renting out both or occupying both. If there’s a family member that requires additional supervision or care, such as an elderly grandparent or a young adult, duplex is a perfect solution. It allows you to stay close and help if needed, but it also leaves enough privacy and independence for both sides.
As you can see, a duplex can be an ideal space for a home office so you can avoid commuting, or a guesthouse for friends and family from afar. Whatever your final choice may be, this type of home gives almost endless opportunities and loads of benefits that can both enrich your life and make it much easier and more fun!