3 Reasons You Should Consider a Duplex as Your First Home Purchase
When most people think about buying their first home, a nice little brick house with a white picket fence comes to mind. And while there’s nothing wrong with this, maybe you should actually be thinking about a duplex.
3 Reasons to Consider a Duplex
If you’ve never thought about owning a duplex, then you’re probably unaware of just how many exist in your market. Duplexes are everywhere, and they can be extremely wise investments in certain situations.
While you probably don’t want to buy a duplex if you have a family with kids, it’s perfect for someone who is young and single (or newly married). Here are a few of the benefits you’ll get to enjoy.
1. Mortgage Benefits
Before you can even consider buying a duplex, you have to get your financing squared away. As On Q Financial explains, “The pre-qualification process is the best way to determine the numbers that are right for you. Early in your search, you can work with a mortgage professional to get prequalified and search for homes within your wants, needs, and budget.”
What you’ll find is that a duplex may actually help your mortgage situation, if you plan on renting out the other half. For example, let’s say the mortgage on a duplex is $1800 per month, but you can rent out one half for $1,000. You’re essentially getting 55 percent of your mortgage covered. Not only does this save you money, but it could also help you build equity much quicker (if you choose to make larger payments).
2. Tax Benefits
As you’re likely aware, you can deduct the interest on your mortgage come tax season. And while you can only write off the side you live on (in a duplex), you can gain access to additional write-offs by renting out the other half. This includes fees accrued to rent the place, as well as things like repairs, maintenance, and utility bills (if you share in them).
3. Ability to Learn a New Trade
Another added benefit is that you get to learn the ins and outs of the landlording business firsthand. This will either show you, at an early age, that it’s something you’re not interested, or it’ll give you the experience and confidence needed to launch a career in real estate investing.
Alton, Larry. "3 Reasons You Should Consider a Duplex as Your First Home Purchase." BiggerPockets.com. N.d. https://www.biggerpockets.com/renewsblog/buy-a-duplex/
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