Are Duplexes a Good Investment? Here’s Everything You Need to Know

Duplexes are becoming more popular as a real estate investment opportunity among experienced real estate investors and as a reliable income generator for those looking to enter the real estate market.

But are duplexes a good investment for your portfolio? What are some of the advantages of a duplex house? If you’re considering renting out a duplex you already own, what are some of the advantages of a half-duplex rental? Or, would it be more financially sound to rent out the whole thing?

As Worthington Homes offers duplex builds, you might think we’ll be singing the praises of buying a duplex! And while we certainly think they’re a worthwhile investment, let’s dive into the advantages of buying a duplex and whether the risks outweigh the rewards.

Are Duplexes a Good Investment?

Simply, put, yes! Duplexes are one of the world’s greatest revenue producers for real estate investors. Their flexibility of design, earning potential as an investment property, smaller footprint on a plot of land, and many other factors contribute to their success as an investment property.

Let’s dive deeper into some of the advantages of a townhouse or duplex as a rental property.

The Benefits of Buying a Duplex

There are myriad benefits of adding a duplex to your rental property portfolio. Let’s go over some of them below.

One Building, Two Income Streams

One of the main advantages of full duplex rentals is that a single building produces two income streams. Because a duplex is classified as two separate living spaces contained within four walls and sharing a common wall (or ceiling/floor if they are built in a stack), you need only buy or build a duplex as a single building. Then, if you rent out the full duplex, you’ll receive two income streams for the price of a single building.

Half-Duplex Rental Options

Unlike buying or building standalone semi-detached housing, one of the advantages of buying a duplex is that you have the option to live in one side, while renting out the other. Sharing a central wall with another family or persons isn’t always ideal, but one of the advantages of a half-duplex rental is that you’ll still receive income to help you cover the overall costs of living in your side of the duplex. If you’re just starting out on the property ladder, with a family that needs the space provided by a duplex, then renting half of your duplex makes great financial sense.

More Square Metres Per Dollar

Because duplexes offer the design versatility of side-by-each or being built as a stack, you can get more square metres in a single structure, maximising how far your investment will go. Building a duplex as a stack also lets you buy smaller parcels of land, reducing your immediate overheads.

High Rental Yields

If you’re looking for a high-yield property, then a duplex is one of the highest rental yield properties in the country at the moment – with a rental yield of between 6 and 7+%! They’re a great way to make money in a location where rentals are sorely needed.