Duplexes are becoming an increasingly popular choice for homeowners and investors alike. With a duplex, you can have a custom home for yourself and add rental income to your property.
Our helpful guide will help you understand how a duplex can benefit your family and how much it would cost to build one.
We’ll break down the costs so you know what to expect and any other costs you should consider before you invest.
What Is A Duplex?
A duplex is a multifamily dwelling that has two separate living spaces. These two units are built side-by-side or even stacked on top of each other.
They may have the same layout and amenities, or they may be completely different from one another.
Duplexes offer most of the same benefits as if you bought a traditional single-family home. However, they also offer the unique advantage of being able to generate extra rental income while living there.
It’s a great way to offset mortgage, tax, and maintenance costs while also living there yourself.
Duplex Building Costs
Duplex prices can vary due to a number of different factors. However, we’ll go into more depth about those external factors later. For now, we’ll focus on the national average to help gauge how much it will cost you to build one (see also “How Much Does It Cost To Build A 12×12 Screened-In Porch?“).
Suppose you’re thinking about building a duplex. In that case, you should consider that the price can average between $285,000 and $537,000, depending on several external factors.
The average square foot of your duplex build would fall between $95 and $220 for each one. However the national average itself is $388,000, but they can cost as low as $142,000 and as high as $1,100,000.
When building a duplex, you’ll need to consider several different factors. These don’t only cover construction and labor costs but also the location, size, and price of each material.
Factors You Should Consider
Now that we’ve informed you of the cost of your duplex, it’s time to explain what will influence how much you pay for your build.
The first costs you will be considering are for your materials. After all, you’ll need your wood, foundations, flooring, drywall, windows, doors, roofing, siding, electric, plumbing, appliances, paint, and other furnishings.
These are all essential to your duplex, and adding all of those materials will cost you money. Then, you need to consider how much labor will cost, as you’ll need architects, carpenters, contractors, excavators, plumbers, electricians, and painters.
These are all essential to your costs, as you can’t build a duplex alone. In fact, even your materials may cost more than you expect, as the price may vary depending on inflation.
However, these costs will also be impacted by other factors that you might not expect. For example, you’ll need to consider how large your duplex will be.
You’ll need to purchase land to build on it and then the number of rooms you plan to include. The more rooms it has, the more expensive your duplex will be.
Then, you’ll also need to think about where you want to build your duplex. Even if it’s not that large, if you plan on building in an expensive area, then it will cost you.
Likewise, you don’t want to build a duplex in an area that won’t offer a return on your investment.
Pros And Cons Of Building A Duplex
Now you know how much your duplex should cost and the factors you should consider, it’s time to consider whether a duplex is right for you.
Like all properties, building a duplex has pros and cons, so you should weigh the benefits and disadvantages.
The best reason to build a duplex is because it offers a great opportunity to invest in real estate. Not only can you live on one side and rent the other, you could even rent both sides out to minimize your risks and maximize your returns.
Should you build a new high-end home, you may find that you could bring in a higher income from rent and have a lower tenant turnover if you look after your tenants correctly.
However, there are risks to building your own duplex. After all, compared to single-family homes, they are a lot more expensive. They cost more to build as you must acquire and demolish the land successfully.
You also will need building permits to construct and use your duplex, and it will cost more to furnish and look after multiple homes at the same time.
Overall, there is a better opportunity for you to invest in a duplex, but there may be challenges later if you want to sell it, especially if you plan to rent out your other property.
Final Thoughts
A duplex can be a great real estate investment, but they are more expensive than your average single-family home. After all, it’s a great way to build a home for yourself to live in while also renting out to maximize your costs.
However, you’ll also need to consider how much it will cost to look after two properties simultaneously.
Unit-over-unit duplexes are the most cost-efficient as they require smaller foundations and roofs. Builders might also be able to centralize some of the piping and wiring, which can save money on plumbing and electrical costs.
Is A Duplex The Same As A Semi-Detached Property?
Semi-detached properties are two distinct homes with separate owners, but the lost are connected through a common wall. A duplex, however, is a property with a single lot and two distinct living spaces with only one owner.
What Is A Half-Duplex?
A half-duplex is a duplex that has a separate owner for each half instead of one owner for the entire lot.
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