Why choose a duplex as an investment property

Investing in duplex properties offers several compelling advantages for both seasoned and new investors.

Firstly, duplexes provide dual income streams from a single investment. With two rents under one roof, investors can enjoy a steady cashflow, reducing the risk associated with relying on a single tenant. Furthermore, this can be very attractive to investors as it often provides a higher rental yield than standard homes as a result.

Secondly, duplexes as an investment offer significant tax benefits, with the ability to claim depreciation on the building and fixtures, reducing taxable income and improving overall returns. 

Additionally, owning a duplex allows for greater flexibility. Investors can choose to live in one dwelling while renting out the other, which can help offset mortgage costs. This owner-occupier strategy is also advantageous for those looking to downsize or provide housing for family members while maintaining an investment property. Investors can also choose to strata title each dwelling, effectively creating two independent properties to sell one side to pay down debt.

Another key advantage is the potential for property value appreciation. With the ability to strata title a duplex property, property valuations on construction completion can often be higher than the original purchase price. This is known as manufactured equity and can provide an immediate equity uplift in an investment.

Overall, duplex investments in Australia offer a blend of income stability, tax advantages, flexibility, and capital growth potential, making them a wise choice for property investors.

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