There are many different types of property available on the market. Most people dream of owning a detached property with land around it and tree-lined streets. Unfortunately, this isn’t an option for everyone, especially those that are looking to buy their first property.
As a first-time buyer, with a limited budget, the available options can seem small. You’re probably looking at an apartment or a very small terraced house. However, there are other possibilities. You may be surprised to discover that custom-built homes are generally cheaper than purchasing an existing property. It makes it worth considering.
You may also wish to consider a duplex, but you need to know exactly what a duplex is.
A duplex is a family home. They are not generally worth as much as a detached property but are more expensive than an apartment. This can make them seem unaffordable.
However, a duplex is set up as two homes in one property. There are separate entrances and separate living areas. You can’t interact with each other from inside the home. For all effects and purposes, it is two separate homes.
The big difference is that you’re buying both homes, allowing you to rent one of them out. This can help you to pay the mortgage as you’ll have rental income.
Finance companies will also consider the rent potential, allowing you to borrow more, ensuring you can afford a duplex.
You should note that a duplex is only the start, you can also purchase a triplex and even a fourplex. But, if you’re in New York City a duplex is a twin-floored apartment!
Who Is It Good For
A duplex is a great idea for anyone trying to get into real estate investment. It gives you somewhere to live and a taste of being a landlord. You’ll also find that the rental element means your equity in the property rises faster.
This creates opportunities to reinvest the equity into new properties and expand your portfolio.
A duplex can also appeal to people that don’t want an apartment but can’t yet afford a detached home of their own. The duplex gives outside space and the feel of detached living. You will need to share the garden and other facilities but this is a relatively small price to pay.
Things To Be Aware Of
As the owner of a duplex, you are responsible for all the repairs and maintenance bills. This is different from an apartment in a block where the landlord handles all those elements for you.
The duplex can generally be purchased in a better neighborhood as you can afford more and they are an attractive option to many families.
Of course, living in a duplex also means you only have one neighbor to worry about, dramatically reducing the chances of a conflict. You could even become friends with your tenant.
They can be a good idea providing you know what you’re letting yourself in for, it can even be a great way to make a new friend.