Invest in Building a Duplex: The Advantages and How You Can Capitalise

Are you thinking of building a new home in New South Wales? If yes, break free from the conventional norms of homeownership. Lately, property owners in Sydney have been exploring a fascinating alternative beyond the traditional style of a single-family home — duplex homes.

The duplex home is a harmonious blend of individuality and privacy with the value of multi-occupancy land. If you want to embrace a unique lifestyle and seize an incredible investment opportunity, explore the potential of building a custom duplex.

What is a Duplex?

If you’re looking for a unique investment opportunity that offers financial benefits and a practical living arrangement, we have the answer. A duplex is a type of residential property that has two separate living units on the same property. The two homes are separated by a common central wall and have their own front entrances, separate living areas and parking. Anything a single-occupancy home would possess.

5 Advantages of a Custom Duplex

If you aren’t sure about building a custom duplex home with the assistance of a professional duplex builder, these benefits will give you a new perspective –

1. Two Homes on One Property

If you have a duplex home, it means you have two fully functional homes on a single property. It offers opportunities for you and your family to live together while enjoying personal space. Be it your old parents or adult children, if you want to keep them close while maintaining their privacy and independence, a duplex home is an excellent option.

In case you want to rent out the property, it will be an excellent option for investment. You can rent out both dwellings and enjoy dual income streams.

2. Privacy in a Shared Space

A duplex is a home unit that shares a common wall. However, don’t mistake it for a home structure that will disturb your privacy. It offers all the advantages of a private home. Be it your private entrance, outdoor space, or amenities, all residents will get a sense of ownership and autonomy. So yes, whether you want to enjoy leisure time in your backyard or need ample parking space, you will get it all.

3. More Equity in Property

If you want to leverage the most of your property value, talk to a duplex builder to build a custom duplex home. You see – when you construct two home units at one property, you significantly increase the income-generating potential and overall worth of the property.

At present, you can leverage it for more space for your family or higher rental income. But it has future benefits too. It will help you with leveraging the equity for future investments and selling the property for a higher return.

4. Maximise Use of Limited Space

If you live in a high-demand suburb, it’s common knowledge that the property prices are sky high. Moreover, the property space is scarce. In such a situation, building a custom duplex is a smart choice to make the most of your land value.

You get an opportunity to maximise the use of your limited space which allows you to accommodate two households on a single block, generating up to two income streams from one property. Consequently, you will be among the few house owners who can meet the growing demand for rental properties in sought-after areas.

5. No Strata Fee

If you live in an apartment or townhouse, you need to pay the strata fee. However, that’s not the case with duplex homes. Since you’ll get complete control over both units, you can make decisions regarding maintenance, renovations, and overall property management.

How to Capitalise a Duplex Investment?

Rental Income

If you want a positive cash flow from your investment, you can rent out both home units and maximize your rental income. Remember, you must set competitive rental rates based on market demand to appeal to potential tenants.

Long-Term Investment

Real estate is known to appreciate over time. So, think about holding onto your duplex property for the long haul. Ultimately, you will benefit from potential capital appreciation and have a steady income stream.

Tax Benefits

Most people don’t know it, but a duplex can come with various tax advantages. Talk to a tax professional to understand the tax advantages associated with owning a duplex. It can include depreciation deductions and negative gearing.

Market Research

If you want to set appropriate rental rates, attract dependable tenants, and minimize vacancies, conduct thorough market research. It will help you identify high-demand rental areas and target tenants who will provide a stable rental income.

Professional Property Management

It is time-consuming and daunting to manage a duplex property. If you want a stress-free experience, consider hiring a professional property management company. It would manage tenant screening, rent collection, and property maintenance for you.

Closing Words

Building a duplex is an attractive investment option. It will help you maximise the potential of your Sydney property.

If you want to feel confident about your decision, talk to our duplex builders at Brickwood Homes. We can help you build custom duplex homes as per your needs and wants. Contact us today to get a free price quote.