If you’re a first-time homebuyer looking for a place that offers both living space and investment potential, a duplex may be an excellent choice. In this article, we will cover the benefits and drawbacks of buying a duplex as your first home, offer home-buying advice, and emphasize the significance of purchasing the right insurance to safeguard your property.
Pros of Buying a Duplex as Your First Home
When compared to single-family homes, duplexes frequently provide more living area for the same price. This can be very beneficial for first-time homebuyers who have a limited budget. Not to mention, the presence of an additional unit creates rental opportunities.
Renting out one side of your duplex could be a consistent source of income to help cover mortgage costs and other living expenses. This could be beneficial for first-time homebuyers who are just starting out in their careers and don’t have a lot of money saved up. Therefore, by renting out one of the units, you can lower your monthly housing expenses and develop financial security.
Lastly, duplexes provide maximum flexibility. If your family grows or your financial condition changes, you can move to the other half of the duplex and rent out your original unit. This could be a great way to change your living circumstances without having to sell your home and start over.
Cons of Buying a Duplex as Your First Home
You’ll be charged with the upkeep of both units as a homeowner and landlord. This can be especially difficult if you have untrustworthy tenants who fail to keep their half of the property in good shape. Therefore, you should be prepared to handle the landscaping, repairs, and routine upkeep.
When renting out a section of your property, there are some legal obligations that you have to be aware of. For instance, knowing local housing laws, getting the necessary permits, adhering to fair housing standards, and so on.
Being a landlord can be difficult, especially if you have unreliable renters who cause property damage or don’t pay their rent on time. So, if you do plan to rent out your other unit you must be prepared for the difficulties of being a homeowner and a landlord.
Tips for a Successful Purchase
- Consider Location: Search for a duplex in a desirable neighborhood with top-notch facilities and schools.
- Get Pre-Approved for a Mortgage: Before you start looking for a home, it’s critical to understand how much you can afford.
- Hire a Home Inspector: A qualified home inspector will be able to spot any potential issues with the duplex.
- Don’t Skimp on Insurance: Protect your home by obtaining the necessary insurance coverage, like liability and property insurance.
Purchasing a duplex as your first home can be a wonderful idea for first-time homebuyers with a limited budget. However, you must first carefully weigh the pros and cons and make an informed decision. By following the advice in this blog, you can ensure that you’re making a wise purchase and protecting your property with the appropriate insurance coverage.
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