Should you invest in a duplex in 2020?
PRPTY360 | July 21, 2020
Short answer, YES! Without a doubt.
Duplexes are among the most common dual-income investments that help investors improve their equity over a short period and ultimately fast-track their way to financial freedom. Could this be the right asset for you?
JOIN our FREE webinar on the 20 August 2020 Thursday on Why you SHOULD invest in a duplex property in 2020 and everything you need to know about a duplex property! SECURE YOUR SPOT NOW>> https://online.prpty360.com.au/duplex-free-webinar/
A duplex is generally defined as “two separate homes built on the same title” which could be retitled as strata titles depending on the investor’s preference.
Unlike subdivided land, a duplex maximises the potential of the land without additional holding fees, insurance costs, council rates and other associated costs. It may also increase tax depreciation and returns on investment.
1. You can earn more money with great monthly cashflow potential
The unique thing about investing in duplexes is that it provides options to the owner. You can choose to live in one side of the duplex while renting out the other side, or rent out both units. Renting out both units will produce monthly cash flow. And if you’ve taken the time to do your homework and snagged a great deal, it’s likely the combined rent from both tenants will cover the entire mortgage and then some. This makes owning a duplex, potentially very lucrative in 2020.
2. The Risk of Earning $0 Is Low
Keeping with the comparison of single family homes vs multi family homes, duplexes enjoy lower vacancy rates. It’s highly improbable that both units will remain vacant (if you have chosen a good place to invest in real estate). With single family homes, vacancy means no rental income at all. If a tenant moves out of one unit or you have trouble filling it, you’ll only lose half of the rental income with a duplex rental property.
3. Live for free or cheap while your tenants pay your bills
One of the most appealing parts of investing in a duplex is the ability to live for free or cheap. Living in one side of the duplex and renting out the other can potentially cover or lower your mortgage each month.
For example, let’s say the mortgage on your duplex is $1,500 a month. And you rent out the other half for $1,000 per month. Then you’d only be paying $500 a month while your tenant pays the rest. Or you can make double payments and pay off your loan quicker and start earning passive income.
4. They're affordable - two units in one transaction
A duplex is typically (not always) more expensive than a single-family home, at least in the beginning. However, you’re getting two units in one transaction, which makes them extremely affordable, especially long term.
Another reason duplexes are so affordable in 2020 is location. More often than not, duplexes are located in very affordable neighborhoods. Additionally, you’ll be getting rental income every month, making them even more affordable.
5. Take advantage of landlord tax reductions
Did you know that investing in a duplex as an investment property in 2020 qualifies you for several additional tax deductions? Whereas single-family homes don’t offer the same tax breaks. Duplex owners can deduct most expenses for maintenance, yard work and repairs.
In summary, as property acquisition specialists with over 20 years of experience, we strongly recommend purchasing a duplex as an investment property, especially if you are just starting out as a beginner in property investment. Duplexes are a good real estate investment– some of the best in the market, actually. You have different options for rental strategies and can get access to low down payment investment property loans.
As one of Australia's leading property investment advisers, we have access to off-market opportunities that are not available to the general public. We can negotiate deals below market value, giving our clients the best price possible for our duplex opportunities.
Do you want to learn more on how you can achieve cash flow positive investment with a duplex? Tune in to our webinar on "Why you should invest into a duplex webinar in 2020" on the 20 August 2020 Thursday! In this webinar, hosted by Julian Fadini, Director of PRPTY360 we will teach you everything you need to know about duplex property and why you should invest in one. SAVE MY SEAT>> https://online.prpty360.com.au/duplex-free-webinar/
Get in touch with us now if you want to learn about our current duplex opportunities we have available ( Up to $225,000 instant equity)!