If you have a large space in your house that you want to improve, you can always transform it into a duplex or any multi-family unit. It is one of the fastest and easiest ways to make renovations profitable in Australian suburbs.
A duplex is a two family unit in a single property. The property renovators of Vision One projects say it is easy to build and can earn double the amount than standard units. This makes duplex properties an attractive prospect for real estate investors.
While renting out your duplex may yield potential income, you will find some low hanging obstacles and nudges along the way. You have to look out for complexities in three aspects: tax, location and marketing.
More Complicated Tax
Unlike single family units or apartments, duplex properties belong to the more detailed side of the taxing bracket, ex. Capital gains tax and goods and service tax. It may be easy to declare the whole property as an income-generating business. In many cases, owners choose to occupy a piece of the establishment. Living in one of the duplex properties makes taxes more complicated, but doable anyway.
Higher Maintenance Cost
Maintaining a single roof is easier if the property is all yours. Having more tenants means you have to balance the pros and cons of duplex, especially as maintenance expenses are higher. You may need to split the maintenance budget for both units.
Challenge in Marketing
Duplex living is not for everyone. The dynamics of neighbour relationships are a factor that tenants consider. Moreover, some people may not favour the narrow space of duplex properties. This makes property advertising a challenge.
Renovating a property to transform it into a duplex will definitely rake you some gains and more responsibilities. With thorough preparation and professional opinion, you can counter these obstacles and get the best out of your property investment.