Are you ready to get a new home? Did it ever cross your mind to get a duplex instead of a condo or single-family property? You probably wonder why you should make such a purchase. A duplex means more money to be spent and more space to be managed.
But, when buying a duplex, you choose to invest in your future. The mortgage rate may indeed be higher, but you have the option to rent the other half of the duplex, the one you don’t use. If you need more reasons to make such a choice, here are 5 of them that are hard to ignore.
1. You’ll enjoy tax benefits
That is worth mentioning as one of the first benefits to consider when opting for a duplex. While it may not be a secret that you can write off taxes after buying a property, in the case of a duplex, you can certainly write off the part in which you live. So, the charges for a duplex will be cut down to half. And once you rent that half, you won’t even feel those taxes that much.
The Schedule E form is the one that will help you write off costs connected to your side of the duplex. What kind of expenses can you avoid? Well, you can start with the fees related to renting the other half, property management fees, utility bills, and even repair fees. As a tip, if you end up splitting the Internet bill with the tenant occupying the other half, you can write this expense off as well.
2. Even the mortgage will have a set of advantages
When applying for a mortgage to get a duplex, the lender will appreciate the fact that you will live on the property, while having a part left out for investments. That is because lenders see the duplex as one single property with two units, instead of two separate features. And, if you will occupy one of these units, the mortgage rates will be lower than when buying a property in which you won’t live, according to UpFlip.com.
Also, it is possible to find lenders that will allow you to include half of the duplex that will put out for rent as part of your income when applying for the mortgage. As you can tell, this will undoubtedly boost your score.
3. You can start your first business as a landlord
Being a landlord is probably one of the best ways to make money with a minimum amount of effort. Yes, you may have to take care of the wishes or issues of the tenants, but your main job will be to cash the monthly rent.
Also, it is a good start in the real estate investment sector. As the owner of a duplex, with a rented unit, you will gradually learn how things work, like laws, regulations, and best practices.
Thus, if you’ll be interested in making a more consistent investment in real estate, later on, you will already have a certain degree of experience. Not to mention that you’ll be close to the unit you rent, which makes management a lot easier and convenient for both parties involved.
4. Great vacation rental opportunities
Vacation rentals represent a great way to earn the right amount of money in a rather short period.
If you live in an area with good touristic potential, renting your half of duplex on websites like Airbnb can mean rapid earnings. When you rent a unit for short periods, you can charge more than you do when renting the place for longer terms. So, this is indeed an option worthy of consideration.
While some people will take a free room, others may prefer a bit of intimacy and will appreciate half of the duplex for their vacation, especially when traveling as a family. However, before renting your half of duplex this way, you should become familiar with local regulations, as there are areas where they are stricter than in other parts of the country.
Also, vacation rentals may represent periodic earnings only, so you should check the potential of this type of location, to see if it is worth taking the chance.
5. A multitude of options in your hands
No matter how you put it, investing in a duplex is a great thing. Even if you don’t rent the other half, you will have space available for visiting family members and friends. Both you and your visitors will have the space and privacy needed for a comfortable stay.
If you decide to rent the free unit of your property, your home will turn into a fantastic office that will require no commuting. Because you live next door, managing your property will be a piece of cake. A duplex is also an excellent option for families that wish to take better care of their elderly parents without compromising anyone’s need for privacy and independence.