Do You Want To Invest In A Duplex Property Project?

Are you trying to figure out how to develop a profitable duplex investment strategy? Maybe you’re looking to build a property portfolio, or you want a dual income property that’s cash flow positive, or you want to be able to keep one and sell the other to pay off other debts.

Whatever the reason, building a property to create instant equity is a smart move for first-time and experienced property investors alike. With many of our clients creating over $150,000 instant equity in less than 12 months, you would be silly not to consider this strategy. We’ll outline why having a duplex property is so valuable below and how to avoid the pitfalls in property investment

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What Is a Duplex?

Before we get into why you’d want to own a duplex as part of your investment portfolio, you have to know what a duplex is. Simply put, a duplex is a property that has two units either side-by-side or on top of one another with two separate entrances. This means that when you build a duplex, you build a multi-family home that comes set for two separate families to live in. 

Building a duplex property is one investment strategy that has proven time and time again to be one of the most rewarding real estate investment strategies available. This is especially true for first-time real estate investors to get ahead with instant equity and even for experienced investors looking to add to their property portfolio. 

Why a Duplex Investment Strategy Is Ideal for First-Time Investors?

When you’re a beginner real estate investor, you may wonder why you should put your money into a duplex project home instead of buying a traditional single-family home. There are several good reasons why you would want to consider building a duplex including: 

1. Rental Income

Maximising your return on a property is all about generating rental income, even if you invest in a single-family home. However, when you build a duplex, you instantly double your rental income earning potential. You also get two different options when you build a duplex home. 

You can rent out both units out to provide you with dual income, giving you the potential to earn 7%+ rental yields. Or you can sell one unit to pay down debts such as your own home while keeping the other unit to generate an income. Either way, you will be creating instant equity and have good cash flow, allowing you to move forward in building your property portfolio to achieve financial independence. 

2. Tax Benefits

The good thing about a duplex investment strategy, or any real estate investment, is that it comes with tax advantages attached to it. You can claim instant tax deductions the same year you build a duplex property and there are deductions you can claim with the ATO over the years – this is called ‘tax depreciation’. They include advertising, council rates, land tax, water charges, cleaning, insurance, pest control measures, interest, property management fees, commission fees, repairs, general maintenance and buying the property itself. 

For more long-term tax benefits, you can claim several things starting a year after you build the property. The most common long-term tax benefits include lender’s mortgage insurance, loan establishment fees, broker fees, initial repairs, depreciating assets, capital works and more. 

3. Financing Options

An instant equity property comes with more flexible financing options than you’d get with a traditional single-family mortgage. This flexibility makes financing slightly easier to obtain, no matter which lender you choose to borrow from. You can generally split your financing options into three broad categories, and each one comes with benefits. 

You can choose to go with a regular investment home loan, an owner-occupied loan if you plan to live in one side of the duplex, or owner-financing. Owner financing requires you pay directly to the seller instead of going to a traditional bank. Since you have several choices, buying or building a duplex, whether by yourself or with a friend or family, is relatively painless, especially if you go with a qualified buyers’ agent to help you source one or guide you through the whole land acquisition and construction process. 

4. Mortgage Payments

Arguably one of the more stressful parts of investing in real estate if you can’t pay for it outright is making the mortgage payments. Since a duplex can be turned into an income earner right away, it gives you an automatic cushion for your mortgage expenses. 

The benefit of building a duplex property is that it will provide dual income from day one, making it cash flow positive.  This means that your rent income will pay for your mortgage repayments and other expenses, helping your serviceability so that you can move on to your next property sooner. Having an additional income can help you pay off other debts, go on that long deserved holiday or take a break from work.

Should you Build or Buy a Duplex Property?

Once you decide that you’d like to try your hand at owning a duplex property, you have to decide if you’d rather build your duplex property or buy your duplex property. Both options come with benefits. 

  • Building a Duplex – When you build a duplex, you get exactly what you want out of a home. You have to find and buy land before getting all of your contractors and financing together to build, but you can design it however you like and this option will allow you to create much more instant equity. Aus Property Professionals will do all the hard work for you, from finding suitable land to tendering out the build contract, getting you the best possible deal.
    Building a duplex also comes with builders warranty for many years, giving you peace of mind on your investment.
  • Buying a Duplex – You get two immediate benefits when you buy a duplex property in the form of finance and convenience. It can sometimes be easier to finance an existing duplex purchase, as there’s no holding costs involved and it’s much quicker than building one from the ground up. You can rent it out and start generating revenue at a faster pace. 

Why Aus Property Professionals Are The Best Buyers’ Agents for a Duplex Investment Strategy?

At Aus Property Professionals, we understand the immediate benefits that can come with a solid duplex investment strategy. No matter if it’s your first property or you have a portfolio, you can benefit from having duplex project homes. 

Our professional and dedicated staff understand how critical instant equity is when you deal with the real estate market, especially for new investors. Duplex homes give you a unique take on traditional property investment, and you can start generating income straight away. 

We bring decades of combined experience to each client we take on. Our company has built a reputation for offering cost-effective and tailored services, and we have thousands of satisfied clients and completed projects throughout Australia. Our expertise and experience allow us to help our clients decide if building or buying a duplex is the better choice so you know which one will pay off more in the long run for you. 

Contact Aus Property Professionals Today!

Are you ready to kickstart your duplex investment strategy but you’re not sure where to start? Maybe you have questions or concerns. Either way, you can contact us today! 

Call Us Today: 1800 146 837

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