Houses in a typical neighborhood come with many styles and design. One of the most popular style of home when it comes to blended households or homeowners who want to make more money is a duplex. A duplex consists of two houses in one. The areas of the home can be on different floors for they might be adjacent to one another sharing one wall to separate the two. This type of home is oftentimes referred to as a multi-family home because two families or more are able to reside in a duplex.
Why is it called a duplex?
At times, a duplex is misunderstood as two of the same home. However, they are not the same real estate-wise. Even if a duplex is two separated houses that share a wall, the line that divides the lot runs all the way through this shared wall. On both sides you have one side on one lot, although they are physically together.
However, this type of home differentiates from owning just one home because you are technically the owner of two homes. Initially the expense of a duplex will most likely be high before renting it out. When you finally rent the other portion of the home out to a family, that cash can very much help you mortgage expenses and result in lower monthly bills than what you would pay for one home.
This is a great choice for people who would like to keep their relatives close by and would like a nice cash flow from a home that is not too far in proximity to maintain. A duplex can also be a nice real estate choice to invest in if you are buying a home for the first time.
The positives of owning a duplex
Lower cost: When you live on a single area of the duplex that is meant for two or more families, this will save you more money than residing in a regular single family house with the same amount of square footage and bedrooms.
Assistance with paying for your home loan costs: If your monthly home loan costs on a duplex house is one thousand seven hundred dollars, and you put out the other for nine hundred dollars rent, you will gather together only eight hundred dollars every monthly period to pay that mortgage. You can also pay your mortgage quicker by putting this extra money towards principle. This extra money will get you more close to just collecting rental income each month with no mortgage to pay off.
Nice tax deductions: With a duplex you could deduct specific home costs for home maintenance and backyard maintenance due to it being a property that produces income. This could make maintenance on your property simpler to pay for. You should first speak with a real estate tax professional prior to making an offer on a certain duplex because particulars always vary in accordance to the area.
Click here to learn how to sell your home fast before going on the market!
You will be able to keep your relative closer to you: If your group of relatives has an individual who is older or is just beginning his or her career, they can reside in or rent out the opposing side of the duplex. This relative can keep up a degree of independence whilst not leaving the nest.
Do you have a question about duplexes? Click here to contact Lending Corner today!
Courtesy of Cuselleration