If you’re a first-time buyer itching to enter the market and constantly tapping the keys of your calculator app to work out how you’ll pay for your strategy, you may want to consider a different kind of approach.
Recalibrating your property ambitions may allow you to buy into the market today and reap the rewards of rising values when buyers shake off their conservatism.
An excellent entry point is a duplex: a property that is joined by a common wall but consists of two separate homes with two separate entrances.
While some have separate titles, you are looking for a duplex that is on one title. Your strategy would be to live in one and rent out the other to help pay down the mortgage and leverage the tax benefits of being a landlord.
In one hit, you’ll be a buyer and investor.
Duplexes can be built to design by a developer, or created when a large family home has been converted into two units.
These are our top six reasons why a duplex might be worth including in your strategy.
Low-cost entry
A duplex is often more affordable than a family home, especially when you consider the possibility of a fresh income stream.
Rent options
Australia is going through a significant shortage in residential rental accommodation. Rents have jumped 10.2% in the past 12 months, according to researcher PropTrack.
You set the rules
If you buy an apartment, the Body Corporate sets the rules. A typical example is the “no pets” rule, which would exclude many potential tenants for you. With a duplex on a single title, you call all the shots.
Think location
Location is just as important when buying a duplex. Ideally, you’ll buy where renting is popular, there are many facilities, good transport, shops and schools.