Looking for a new home is always an exciting time. There are plenty of things that need to be considered, such as your budget, where you would like your home to be, and how much space you need. But, before you can start looking you need to think about the style of the property.
There are many options, especially if you’re looking for a custom-built home. However, the first step is deciding between a duplex and a house.
What’s The Difference?
A duplex looks like a normal family home. However, instead of being just one property, it’s split into two. That’s where the duo part of the name duplex comes from.
A duplex can be arranged in any fashion, the two homes can be side by side, on top of each other, o any other combination you can think of.
In effect, you’re buying a home that is split in two, the property will even have two separate entrances.
Tips to Help You Choose Between a Duplex and a House
There are several things worth considering which can help you to make the right decision.
1. Space needed
The key to choosing any type of home is to think about the amount of space you need. The larger your existing family the greater space you’ll need. But, if you’re just starting out a duplex can offer you a way to earn money and effectively reduce the cost of your mortgage, while still having enough space to live comfortably.
You have a limited budget when purchasing a property. If you find that this isn’t enough to get the type of house you want, you’ll find that your borrowing limit increases if you choose a duplex. This is because of the potential income that comes with it.
Providing you are sure you can meet the repayments, even without a tenant, buying a duplex can be a great way to get a property in the right neighborhood. A larger budget opens more doors.
3. Fast Equity
In general, a duplex will allow you to build equity faster. Because you can afford the mortgage payment yourself, the rent you collect is a bonus. This can be put against the mortgage, dramatically reducing the term of your finance and the speed at which you acquire equity.
In short, it can help you get the equity you need to purchase your dream home or build a custom home.
4. Landlord Responsibilities
Before you start thinking that a duplex is the only logical way forward you should spare a moment to consider the facts about being a landlord. It means you have to keep the other half of the property up to a government-regulated code. You’re also responsible for all repairs and maintenance to the whole building.
Alongside that, there are tax returns and other financial records to be kept and submitted. Being a landlord isn’t for everyone, consider it carefully before committing.
5. Stepping Stone
It is worth noting that a duplex can be a great stepping stone to other properties. It can open doors for a real estate investor or simply allow you to move up the property ladder faster. That can make it worth the temporary inconvenience.