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February 23, 2023
Advantages to Buying a Duplex
Advantages to Buying a Duplex
Whether you are buying your first home, or a home to get your parents closer to you, you may want to consider buying a duplex.
This may sound crazy, but there are several advantages to buying a duplex, including being able to live in one side and rent out the other side, buying a home with a friend or buying a home that allows you to be in one side, while having your aging parents in the other side. I am going to share why buying a duplex may be the perfect solution for you. Let’s begin by explaining a bit about what a duplex is.
What Is A Duplex?
A duplex is a multifamily home that is divided into two separate units that both have their own entrance. The two single–family homes are either side by side and share a wall or are on different floors.
Like triplexes that possess three different units and fourplexes that have four, duplexes are confined to a single lot and considered to be a single property in spite of being occupied by two different families.
Duplexes typically have two characteristics that can be used to identify them within the real estate market: the units are attached and have separate entrances.
As multifamily housing, duplexes are made up of two separate living spaces within the same building. However, the two units are attached to each other in one of two ways. Since duplexes contain two complete and distinct living spaces that are occupied by separate residents, they also have separate addresses and entrances. And of course, those separate entrances allow residents to enjoy privacy despite the close proximity of their neighbors.
How A Duplex Property Can Be the Perfect Home for You!
With two separate households, here’s how you could make a duplex work for you. As a first–time home buyer, you may benefit from living in one half of the duplex as an owner–occupant and renting out the other half to enjoy an income stream that you could use to help for your mortgage. If you decide that this is a good option for you, you will need to be prepared to become a landlord and take on those responsibilities. You will also be a landlord to your neighbors, so you will need to consider that, but on the long run, if you are wanting to start your residential investment portfolio, a duplex may be perfect because you could live in the home for a few years, and then move on to your next home. Pretty cool. Another thing to consider is to buy the duplex with a friend.
Purchase A Duplex With A Friend
With the increase in housing prices, buying a duplex may be the perfect property to buy with a friend or family member. Think about it, you’ll be able to combine your down payment allowing you to put more money down. You’ll be able to split the monthly payments and live side by side with a friend, while still having some separation.
Sharing The Property With Loved Ones
Many families today, especially those households with aging parents are looking for options to keep family close, but not necessarily under the same roof. A duplex provides numerous possibilities. Duplexes can be great to keep aging relatives close while everyone maintains their
independence.
Pros Of Duplex Living
If you’re thinking of buying a duplex, there are a few pros and cons that you should consider. One of the top benefits of buying a duplex is their affordability. Generally speaking, duplexes are less expensive than single–family homes. Of course, the financial benefit depends on the state of the property, cost of repairs and, if you’re renting, the neighborhood’s rental market.
If you decide to rent out the other half of the duplex, you may be eligible to write off a portion of your property taxes, mortgage interest and even maintenance costs for the rental unit. Be sure to talk to your accountant to ensure you’re set up for success.
Despite the financial gains, there are also some drawbacks to buying a duplex. You may find it frustrating to have a neighbor living so close to you. There are also many responsibilities that come with being a landlord.
Great Loan Programs Available
Another advantage of purchasing a duplex that you plan to live in is that you have more loan options. FHA and VA loans programs only allow financing for duplexes if you plan on occupying the home too. This means that you could get into an FHA loan program or use your VA benefit to buy a duplex. This could be a huge advantage for you in regard to down payment!
Duplexes are a great choice for housing because of their versatility and affordability. The ability to purchase two units for the price of one makes duplexes extremely appealing. However, it’s crucial that you do your research and consider your long–term plans before you decide to buy a duplex.
If there is anything we can do to help you with your home financing goals, please don’t hesitate to call.
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