Most homebuyers looking to purchase their first home are looking for a single-family residence. While these are the most commonly sought-after home types, you may be surprised to find out that there are great opportunities with other property choices too. Before you get locked into the idea of your perfect dream home, take time to research different home types so you can understand what benefits you could have as a first-time homebuyer. Today we are looking at the benefits you can have by owning a duplex property.
Benefits Of Buying A Duplex
When you purchase a home you will benefit from owning a tax write-off where you can deduct the mortgage interest you pay every year. If you are buying a duplex with the intent of living on one side, then you can only write off that side that you are living on. This can be a big benefit to many who need the additional tax write-off.
When you purchase your property your lender will categorize the property as owner-occupied or non-owner-occupied. Your rate will likely be better if you're planning on living on the property. A duplex is considered n property, so if you are living on one side you will be considered owner-occupied. If you are planning to rent out the other side then you could qualify for a larger mortgage because some lenders will allow you to include your potential rent in your income.
You have the opportunity to begin your investment journey if you are choosing to rent the other side of your duplex as an Airbnb or vacation rental. These are called short-term rentals and can end up profiting you more than renting out a long-term lease. Invest, ent properties are one of the biggest ways people build wealth. You can live on one side of your duplex as your primary residence for some time and then when you choose to upgrade to a larger home, you still have a rental property as the start of your investment portfolio. Check with your local jurisdiction or potential HOA to make sure this is allowed before you buy the property. You want to make sure the property you buy allows you to reach these goals.
Your duplex can offer you many financial benefits and one of them could be the use of the additional space for your office or even a guesthouse. If you are in the situation of needing to care for a family member but still wanting privacy, this investment cab allows for that, It gives you a lot of flexibility and convenience within your homeownership and is truly a great first-time buy because of the benefits and long-term potential.
Whether you are interested in a single-family home or a duplex or a multifamily, it's always good to gain knowledge on different property types and how they benefit the homebuyer.
For more information on the home buying or selling process, contact us. We are here to help you with all of your Portland real estate needs.