07 5408 4151 bookings@positiveincome.com.au

Duplex

Multi-Family
Rental Investment

What is a Duplex?

A Duplex house is a multi-family home that has two units in one building and is an increasingly popular style of building in Australia. While side-by-side dwellings with a common wall down the middle is a typical duplex building design, duplexes can be built in many configurations. For example, a duplex may be a house with two doors located side-by-side that enter into different living spaces, one located upstairs and another downstairs.

A defining characteristic of duplex buildings is that they are constructed with separate entrances for each unit. This means each tenant has their own private entrance to the property with a separate unit, typically similar in size and layout.

Benefits Of Investing In A Duplex

Affordability

Duplex properties often offer a more affordable entry point into the real estate market compared to single-family homes or larger multifamily complexes. This lower upfront cost can be particularly attractive to investors with budget constraints or those seeking to minimise financial risks associated with high-value assets.

The affordability of duplexes allows investors to diversify their portfolio by acquiring multiple units at a potentially lower cost than a single residential dwelling. This can provide greater financial stability and reduce the impact of market fluctuations on a single investment.

Demand

Duplexes have broad appeal across various real estate markets, attracting both renters and buyers. Their smaller size and affordability make them an ideal choice for a diverse range of demographics, including small families, young professionals, retirees and students.

The flexibility of duplexes offers investors multiple income streams or cost-saving opportunities. Investors can choose to rent out both units to separate tenants or live in one unit while renting out the other.

Investment Value and Liquidity of Duplexes
Duplexes can offer significant investment value and liquidity. The rental income generated from one or both units can help offset mortgage payments and build equity in the property. This accumulated equity can then be used to fund additional investment purchases.

Compared to larger multifamily complexes or commercial properties, duplexes often have higher liquidity. The presence of two separate units provides investors with greater flexibility, making them more attractive to a wider range of potential buyers. This includes owner-occupiers, investors seeking to expand their rental portfolios, and those looking for a multifamily residence.

Investment Value and Liquidity of Duplexes

Duplexes can offer significant investment value and liquidity. The rental income generated from one or both units can help offset mortgage payments and build equity in the property. This accumulated equity can then be used to fund additional investment purchases.

Duplex Vs. Dual Key Properties: What’s the Difference?

A duplex consists of two adjoining residences built on the one block of land. The residences have separate titles. If an investor owns both “sides” of the duplex property, it can provide two separate streams of rental income, while only paying land tax and insurance on a single property that was purchased for a lower purchase price.

A dual key property is one residence that has been built to accommodate two families. Unlike a duplex house (where both units are usually mirror images of each other), a dual key property will often have a larger and a smaller residence. The most common version of this would be a house built with an attached granny flat.

The advantage of a dual key property over a duplex is that there is no special council approval needed to construct a dual key dwelling. This can make a dual key property cheaper to build, while still producing a similar rental return to a duplex.

While it is possible to sell one side of a duplex property, dual key properties don’t allow for the sale of only one residence (since they are both included on the same title and this cannot be altered).

The Positive Income Properties Difference: Your Duplex Investment Partner

At Positive Income Properties, we specialise in helping investors unlock the potential of duplex purchases. We understand that navigating the property market can be complex, so we’re here to guide you every step of the way.

Check out all our Duplex investment properties HERE

Our Services

Finding the Perfect Duplex Rental Investment: We partner with established developers to source high-quality duplex options that meet your investment goals and budget.
Streamlined Acquisition Process: We handle the entire process from initial search to settlement, ensuring a smooth and efficient experience.
Financing Expertise: We can connect you with experienced mortgage brokers to secure the right financing options for your duplex purchase.
Leasing and Management Solutions: Need help finding tenants or managing your property? We offer comprehensive leasing and property management services to maximise your rental income and minimise your workload.

Benefits of Working with Positive Income Properties

Experienced Team: Our team of property experts has extensive knowledge of the duplex housing market, ensuring you make informed investment decisions.
Personalised Approach: We take the time to understand your unique needs and goals and tailor our services to fit your investment strategy.
Stress-Free Experience: We handle the complexities of the process so you can focus on the bigger picture – building your wealth and achieving financial freedom.

Should I Invest In A Duplex Rental Investment Option?

Duplexes can be excellent rental properties for investors at all levels of experience. While they present unique challenges, these can be effectively managed with proper planning and research.

A duplex may be a worthy investment option if you are seeking:

Reduced purchase costs: Duplexes often offer a more affordable entry point into the real estate market.
Stable rental income: The potential for rental income from both units can provide a steady cash flow.
Portfolio diversification: Duplexes allow you to expand your investment portfolio and reduce risk.

Pros Of Duplex Investment Properties

Potential for Rental Income: Owning a duplex house offers the opportunity to generate rental income from one or both units, which can help offset mortgage payments and increase property value.
Privacy: Duplexes typically offer more privacy than apartments or townhouses, with separate entrances and outdoor spaces for each unit.
Lower Insurance Costs: A single insurance policy can cover both units of a duplex, potentially saving you money on insurance premiums.
Potential for
Appreciation: Duplexes can appreciate in value over time, providing a long-term financial benefit.

Cons Of Duplex Investment Properties

Noise: Common walls in duplexes can sometimes lead to noise issues between units/tenants.
Maintenance: Duplexes require more maintenance than a single-family home, as there are two units to manage.
Potential for Tenant Conflicts: Living in close proximity to tenants can sometimes lead to conflicts or disagreements.
Higher Construction Costs: Building a duplex can be more expensive than constructing a single-family home due to the need to double everything across the one building.
Regulatory Compliance: Duplexes may be subject to specific zoning regulations or building codes, which can add complexity to the investment process.

Ready To Invest?

Whether you’re a seasoned investor or just starting out, Positive Income Properties can help you unlock the potential of a duplex rental investment. Contact us today to schedule a free consultation and discuss your investment goals.

This information is simply a guide to help you with your research. The type of property you ultimately invest in will still depend on the type of property investor you are.

To find out more about how we can assist you, please refer to our 1-3 Year Rental Guarantee.

Schedule a one-on-one consultation with a property specialist to discuss your specific needs.

Stay up-to-date on the latest house and land package opportunities by subscribing to our newsletter.