Duplex Homes May Be Real Estate Pension Plan.

Nearly one in four home sales of approximately 1.8 million was to investors, the National Association of Realtors has reported. Some of these transactions reflect a new breed of buyers, 20 to 30 something’s seeking their fortunes through smart property investments. This includes the growing Duplex House market as well as other affordable housing.

While people of all ages see real estate as a solid investment, interest is very intense among younger buyers, many of whom live in the houses they buy as they fix them up for eventual resale or better yet build a new home to ones own needs. Real estate makes a lot of sense, you know exactly where your dollars are, and it's not a matter of fluctuating value.

It sure isn't. Average U.S. home prices have outpaced inflation for more than a decade and have soared 50% in the past five years, the Federal Deposit Insurance Corp. has reported. Although the rate of appreciation has fluctuated in other regions and housing prices have sometimes fallen after run-ups in speculative markets, but there still is a solid history of relentless appreciation throughout the United States. Younger buyers aren't entranced with traditional investments, having seen the stock market plummet in the past. Real estate is their investment, and low interest rates have made buying even easier.

With low interest rates it is a deal that people simply can't refuse. They built enough equity in three years on a duplex to finance a single-family home purchase and keep the duplex as an investment. The trick is finding what neighborhood will be on the upswing in the next 5 to 10 years. Then, if you can get a property cheap, build a new home, you can get a really good return.