As with building a freestanding home, there are a few key financial basics to consider before building a duplex. The Mint Loans team advise their clients to save as much as possible towards a deposit by following a savings plan and reducing discretionary spending (non-essential purchases). “Keep in mind what you’re saving and what you’re spending on things,” says the team at Mint Loans. This is not to say that you need to completely cut out spending on ‘fun’ items or activities and squirrel away absolutely everything into savings. “That’s not going to do you any good,” the Mint Loans team advises, “but just be very mindful of where the money’s going, what debts you have at the moment and what options you may have to minimise those debts before you actually go for a loan.”
Beyond getting the deposit together, each financial strategy varies depending on your individual situation. We’ve put together three different scenarios to highlight the elements a prospective duplex owner should consider, whether you’re an owner-occupier, an investor, or both.
Find the profile that suits your situation or pick out bits from all three to help guide you in the process of building a duplex.