Imagine buying your dream home on your land for half the cost of a typical house. You think we are joking, right? Want to find out how duplexes compare to other property types? Here’s our full explainer on the various property types and which one could be a better investment.
What is a duplex?
A duplex is a residential building containing two homes that share a common central wall. The pair of homes will either exist on one land title and be owned and sold together, or exist on separate titles and be individually owned and sold.
Owners must agree to a building insurance policy that covers both sides of a duplex.
A body corporate is not usually needed, although this depends on the age of the duplex and its jurisdiction.
You should contact the relevant authority in your state or territory for further details.
Duplexes are buildings containing two homes that share one common wall. Picture: realestate.com.au/buy
What is the difference between a duplex and a house?
A house is different from a duplex because it only contains one dwelling under a single roof, rather than two dwellings under a single roof. In a duplex, the two dwellings share one common wall, but are entirely separate entities with their own entrances and amenities.
Can you own half a duplex?
Yes, you can – although it depends on whether the two dwellings are on the same title, or on different titles. You will only be able to buy one half if the duplex has been subdivided into separate titles.
Why buy a duplex?
Buying a duplex has a number of benefits for both investors and regular buyers. You can earn two incomes as an investor by purchasing a duplex. If you’re a regular purchaser, you will benefit from the lower price, often as low as half what you would pay for an identically located detached home. This is great news for first-home buyers, anyone on a moderate budget, or anyone wanting a low-maintenance lifestyle in a premium location, such as retirees and down-sizers.
Buying a duplex can be a great way to get your foot in the door as a property investor. Picture: realestate.com.au/buy
“This means you can either get into a better location for cheaper than buying a house in the same area, or, to put it another way, you can buy a home on your own strata land – great for longer-term capital gain – instead of buying an apartment with no land in a similar area,” says Eureka Buyers Agents’ Nicole Marsh.
To illustrate her point, Marsh gives the example of a current client with a $700,000 budget who wants to buy a house in a prestige, waterfront suburb such as Burleigh Waters.
“This client could buy a duplex home in the same location for under $400,000, and still be in this premium suburb – that’s almost half the price.”
Of course, you’ll have to weigh the benefit of saving lots of money against the reduced sense of privacy.
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Duplexes often involve less garden maintenance, as the blocks are smaller than a typical house. Picture: realestate.com
Other perks include:
Only one adjoining owner, rather than hordes of neighbours found in an apartment block;
Potentially easy to make changes to your own home, as there’s only one duplex neighbour to consult;
You get the security benefits of having a close neighbour, without living “in each other’s pockets,” says Marsh.
You don’t have to give away pets, because you have your own land;
- Potential boost to rental income due to absence of body corporate fees;
- Low garden upkeep because you own half a standard block (IE 300-400sqm rather than 700sqm-plus).
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- Duplexes come in all shapes and sizes. Picture: realestate.com.au/buy
- Potential pitfalls:
- March says duplex configuration is crucial – “I don’t like duplexes where one is at the back because you can have the back neighbours walking past your bedroom windows late at night” – side-by-side or corner positions are better;
For strongest capital gains, try to buy where duplexes are the exception not the norm;
Avoid duplexes where front facades differ; colours should be uniform across both homes for maximum value.
Duplexes that are built side-by-side offer more privacy than their back-to-back variants. Picture: realestate.com.au/buy
- Momentum Wealth’s Damian Collins also believes duplexes are good investments, depending on location.
- “Duplex properties are definitely good investment options for the right client if the duplex is in the right location,” he says.
- “People looking at duplexes are often comparing them to apartments. A duplex has a larger land area and greater value than an average apartment. Historically properties with a higher land component value appreciate faster.”
Duplexes can have as much land as a standalone house, therefore make a stronger investment than an apartment. Picture: realestate.com.au
Collins also points to some downsides to duplex investing.
“If you only own one of the duplexes, you are often limited in your ability to do external works to the property as it is part of a strata complex. “This limits the ways in which you can increase value of your property,” says Collins.
A duplex investment requires thorough research, just like other properties. The right duplex property can certainly make a great investment.”
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This article was originally published on
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The information has been updated regularly to ensure that it is current.