Buying a duplex vs buying a house

Buying a duplex can allow you to afford a modern home in a desirable area, because they typically cost less than free-standing houses. Before you buy, make sure you look closely at the property title. And get to know your future neighbours if you can: You'll be sharing a wall with them.

What is a duplex?

A duplex is two residential homes that are situated on the same property and that share a common central wall. In other words, it’s a single building with two separate residences within. Each home has its own driveway, entrance, garden, backyard, bedrooms, kitchen, bathroom and everything else you’d expect to find in a detached house.

Both homes in a duplex building are constructed at the same time, but they may be sold together or separately depending on how the building is titled. If the building is strata-titled, each individual dwelling can be owned and sold separately. If the building is not strata-titled, both duplex homes can only be sold together.

Finally, the homes in a duplex will usually have separate postal addresses, for example 2a and 2b Smith Street.

What to be aware of when buying a duplex

There are several factors you should be aware of before buying a duplex, so let’s take a closer look at each of these issues below.

How the duplex is titled

This is an important factor as it will determine whether the two properties can be sold separately or together. Duplexes on one title traditionally tend to be harder to sell because the market is narrowed to owner-occupiers who want to offer the second dwelling to family members, and investors who want to live in one property and rent out the other.

Everything you need to know about property titles

Different configurations

Duplexes come in a variety of configurations, the most common of which sees the two homes sitting side by side and separated by a common wall in the middle. These properties are usually one or even two storeys. However, there are some two-storey properties where the floor between the two storeys separates the two dwellings.

Some duplexes are set out where one home is at the back of the block of land and the other is at the front. This can create issues with the residents of the back property walking past the front property as they come and go at all hours of the day or night, and is an issue to be aware of before you buy.

Make sure there’s easy access to both properties in a duplex, including to the backyard, without disturbing your neighbours.

Building insurance

One of the quirks of owning a dwelling within a duplex is that the owners of each separate home will need to agree on a building insurance policy that covers both dwellings within the building. This will require you and your neighbour to join forces and come to an agreement, while you will also need to share expenses for the maintenance and upkeep of any common property.

Meeting the neighbours

Another key factor to consider is the importance of meeting your neighbours before you move in. Even though you’re in separate homes, you’re probably going to spend several years living in very close proximity to the people living in the adjoining duplex home, so it’s vital that you know what you’re getting yourself into before you buy.

Noisy or annoying neighbours can make your life hell, while neighbours who don’t keep up with the maintenance of their property can drag the value of your home down. Make sure you meet them before you sign the contract, as you’ll need to be able to live side by side with them and also come to agreements about insurance, renovation plans and the like.

The local area

It’s also important to consider the property market in the local area before buying a duplex. If there’s a large number of other duplexes in the same suburb, you may not be able to enjoy as much capital gain as you would like. But if the duplex is a rare commodity in that particular area, it will be easier to sell in the future.

Learn how to research suburbs

Pros and cons of buying a duplex

Pros

• Cheaper. Buying a duplex is a much cheaper option than buying a house and in many areas it's possible to get a duplex for half the cost of a fully detached house. In addition, there are usually none of the body corporate fees associated with owning an apartment.
• Buy in premium areas. The reduced price tag of duplex homes could make it possible for you to buy in a highly sought-after area without breaking your budget.
• Most of the benefits of a house. Despite their low prices, duplexes usually offer some backyard space, a gargage and many of the other advantages of owning a house.
• Low maintenance. If you only own one dwelling in a duplex then you will only own half of the block of land, which means less lawn space to mow and less time spent maintaining the garden.
• Value increase. Buying a duplex means you own a piece of land, which can often help the value of your property appreciate quicker than if you own an apartment.
• Dual-living capability. If you purchase both dwellings in a duplex, you can live in one home and let elderly relatives or perhaps mature children live in the other. Alternatively, you can lease out one of the dwellings to provide rental income.
• Only one close neighbour. Unlike living in a high-rise apartment, where you're forced to share with scores of other residents, duplex living means you only have one set of close neighbours.

Cons

• Proximity to neighbours. There's no getting away from the fact that you will live in very close quarters to your immediate neighbours. This can be a big turn-off for some people.
• External renovations and insurance. You'll need to get approval from your neighbour if you want to make changes to the external facade or any common areas of the property. You will also need to agree on an insurance policy that covers both dwellings.
• Not as big as a house. Duplexes do not provide the same room to move as houses do, either indoors or out.
• Living next door to your tenants. If you do decide to buy the entire duplex and rent out one dwelling, keep in mind that you'll be living next door to your tenants.

Need a home loan? Start comparing

1 - 10 of 38

Updated regularly

Name	Interest Rate p.a.	Comparison Rate p.a.	Fees	Monthly Payment
Unloan Variable Home Loan Principal & Interest20% min. depositInvestmentRefinance Only Unloan Variable Home Loan Principal & Interest20% min. depositInvestmentRefinance Only Go to site Details Fees Pros & cons Product Name Unloan Variable Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.29% Comp. Rate p.a. 6.20% Minimum Loan Amount $10,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility No Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $0 Pros A competitive variable rate home loan Automatic interest rate discount No lender fees Cons No offset account You can’t borrow more than 80% of the property value, even with a first home buyer scheme Unloan doesn’t offer fixed rates or interest only loans	Interest Rate 6.29%	Comparison Rate 6.20%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $929	Go to site Compare
Macquarie Bank Basic Home Loan Principal & Interest20% min. depositOwner-occupier Macquarie Bank Basic Home Loan Principal & Interest20% min. depositOwner-occupier Go to site Details Fees Pros & cons Product Name Macquarie Bank Basic Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.19% Comp. Rate p.a. 6.21% Minimum Loan Amount $150,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee at cost above $300 Ongoing Fees $0 p.a. Settlement Fee $350 Discharge Fee $400 Pros $0 application and ongoing fees. Interest only options available. Fee free redraws of extra repayments made. Cons No offset account available. $400 discharge fee when you close your home loan.	Interest Rate 6.19%	Comparison Rate 6.21%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $919	Go to site Compare
IMB Budget Home Loan Principal & Interest20% min. depositOwner-occupier IMB Budget Home Loan Principal & Interest20% min. depositOwner-occupier Go to site Details Fees Pros & cons Product Name IMB Budget Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.14% Comp. Rate p.a. 6.17% Minimum Loan Amount $10,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable Yes Extra Repayments Yes Application Fee $449 Lender's Legal Fee $0 Valuation Fee At cost Ongoing Fees Settlement Fee $350 Discharge Fee $350 Pros Enjoy a discounted interest rate for staying below 80% of the property value Make extra payments at any time Withdraw excess funds from the mortgage via the redraw facility Cons No offset account for this product Application fee of $449	Interest Rate 6.14%	Comparison Rate 6.17%	Fees Application: $449 Ongoing: $0 p.a.	Monthly Payment $914	Go to site Compare	$2,000-$4,000 cashback Eligible refinancers can get up to $4,000 cashback when switching their loan to IMB. Loan value criteria applies. Other terms and conditions also apply.
loans.com.au Solar Home Loan Principal & Interest10% min. depositOwner-occupierOffset account loans.com.au Solar Home Loan Principal & Interest10% min. depositOwner-occupierOffset account Go to site Details Fees Pros & cons Product Name loans.com.au Solar Home Loan Interest Rate Type Variable rate Repayment Type Principal & Interest Interest Rate p.a. 5.99% Comp. Rate p.a. 6.51% Minimum Loan Amount $50,000 Maximum Loan Amount $1,500,000 Maximum Loan Term 30 years Maximum LVR 90% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option Loan Portable Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $230 Ongoing Fees Settlement Fee $300 Discharge Fee $300 Pros Borrowers can use as low as a 10% deposit Available for both owner-occupiers and investors No application or ongoing fees Extra repayments available Option for redraw and split accounts Cons Minimum loan term of 15 years Late payment fee of $150 Have to pay an extra 0.10% p.a. if you want to add an offset account	Interest Rate 5.99%	Comparison Rate 6.51%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $900	Go to site Compare
Bendigo Bank Express Variable Home Loan Principal & Interest10% min. depositOwner-occupierOffset account Bendigo Bank Express Variable Home Loan Principal & Interest10% min. depositOwner-occupierOffset account Go to site Details Fees Pros & cons Product Name Bendigo Bank Express Variable Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.01% Comp. Rate p.a. 6.14% Minimum Loan Amount $5,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 90% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility No Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $134.20 to $440, depending on valuation type & property value Ongoing Fees $10 monthly ($120 p.a.) Settlement Fee Discharge Fee $350 Pros Borrowers can use as little as a 10% deposit Loan amount from $5,000 to $3 million Extra repayments available Full offset account available for variable loans, partial offset for fixed loans Cons Monthly ongoing fee of $10 Exit fees and switching fees applicable Late payment fee of $35 You are not eligible for this loan if you’re buying outside a capital city or major regional centre	Interest Rate 6.01%	Comparison Rate 6.14%	Fees Application: $0 Ongoing: $10 per month	Monthly Payment $902	Go to siteMore Info Compare
Homestar Star Classic Variable Rate Home Loan Principal & Interest30% min. depositOwner-occupierOffset account Homestar Star Classic Variable Rate Home Loan Principal & Interest30% min. depositOwner-occupierOffset account Go to site Details Fees Pros & cons Product Name Homestar Star Classic Variable Rate Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 5.99% Comp. Rate p.a. 5.99% Minimum Loan Amount $150,000 Maximum Loan Amount $2,000,000 Maximum Loan Term Maximum LVR 70% Loan Redraw Facility No Offset Account Yes Split Loan Facility Yes Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $595 Pros No ongoing fees No application fee Comes with up to 4 offset accounts Cons You can’t redraw from extra repayments If you want to deal with someone face-to-face, you can’t	Interest Rate 5.99%	Comparison Rate 5.99%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $900	Go to site Compare
Macquarie Bank Basic Home Loan Principal & Interest40% min. depositOwner-occupier Macquarie Bank Basic Home Loan Principal & Interest40% min. depositOwner-occupier Go to site Details Fees Pros & cons Product Name Macquarie Bank Basic Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.14% Comp. Rate p.a. 6.16% Minimum Loan Amount $150,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 60% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $350 Discharge Fee $400 Pros $0 application and ongoing fees. Interest only options available. Fee free redraws of extra repayments made. Cons No offset account available. $400 discharge fee when you close your home loan.	Interest Rate 6.14%	Comparison Rate 6.16%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $914	Go to site Compare
loans.com.au Variable Home Loan Principal & Interest10% min. depositOwner-occupier loans.com.au Variable Home Loan Principal & Interest10% min. depositOwner-occupier Go to site Details Fees Pros & cons Product Name loans.com.au Variable Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.04% Comp. Rate p.a. 6.06% Minimum Loan Amount $50,000 Maximum Loan Amount $2,000,000 Maximum Loan Term 30 years Maximum LVR 90% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option Loan Portable Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $230 Ongoing Fees Settlement Fee $300 Discharge Fee $300 Pros A competitive variable rate home loan Optional offset account No application fee You can apply online Cons Offset account comes with 0.10% rate	Interest Rate 6.04%	Comparison Rate 6.06%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $905	Go to site Compare
Macquarie Bank Offset Home Loan Package Principal & Interest30% min. depositOwner-occupierOffset account Macquarie Bank Offset Home Loan Package Principal & Interest30% min. depositOwner-occupierOffset account Go to site Details Fees Pros & cons Product Name Macquarie Bank Offset Home Loan Package Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.14% Comp. Rate p.a. 6.39% Minimum Loan Amount $150,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 70% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option Yes Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee at cost above $300 Ongoing Fees $248 p.a. Settlement Fee $350 Discharge Fee $400 Pros 100% offset account Interest only options Cons Annual fee of $248	Interest Rate 6.14%	Comparison Rate 6.39%	Fees Application: $0 Ongoing: $248 p.a.	Monthly Payment $914	Go to site Compare
Unloan Variable Home Loan Principal & Interest20% min. depositOwner-occupierRefinance Only Unloan Variable Home Loan Principal & Interest20% min. depositOwner-occupierRefinance Only Go to site Details Fees Pros & cons Product Name Unloan Variable Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 5.99% Comp. Rate p.a. 5.90% Minimum Loan Amount $10,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility No Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $0 Pros A competitive variable rate home loan Automatic interest rate discount No lender fees Cons No offset account You can’t borrow more than 80% of the property value, even with a first home buyer scheme Unloan doesn’t offer fixed rates or interest only loans	Interest Rate 5.99%	Comparison Rate 5.90%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $900	Go to site Compare

loading

Load More

Showing 10 of 38 results

Written by

Tim Falk

Writer

Tim Falk is a writer for Finder, writing across a diverse range of topics. Over the course of his 15-year writing career, Tim has reported on everything from travel and personal finance to pets and TV soap operas. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio

Co-written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise

Richard has written 530 Finder guides across topics including:

• Home loans
• Property
• Personal finance
• Money-saving tips