Soaring housing costs are leading our nation into an affordable housing crisis.
According to studies done by Harvard, the national median rent cost has increased by 20% with the median housing cost increasing even quicker by 41%.
Income for low to moderate income families has only raised between 3-5%. This has created a challenge for many families.
Families are now looking to accessory dwelling units (ADU) for the answer. Also known as granny flats, these living areas range from as small as 250 sq. ft. to 1,200 sq. ft. , and are built in the backyard of an existing residence.
Granny flats, take on different structural forms.
Is adding a granny flat a good choice for your family?
Benefits of a Granny Flat
There are many benefits to adding an ADU to your property. Here are six benefits we think you should consider!
Increase the Value of Your Property
Adding an ADU to your property is a long-term investment. It’s also an investment that allows for flexibility in the future. With rising housing costs, many younger generations are finding it more difficult to buy their first home.
On the other hand, older generations struggle with the rising cost of healthcare and retirement housing. Having this additional comfortable, independent space not only adds value to your property, but value for your family.
Keeping family close
If there’s one thing we can count on, its that life throws us a curveballs, and we begin to struggle for basic necessities. This is especially true for aging parents and family with medical needs or disabilities.
By adding a granny unit to your property, you can provide a sense of security for your family. Keeping aging parents close allows you to provide an enormous boost to their quality of life, the care they need, while providing independence and comfort.
Aging parents can enjoy the richness of being closer to loved ones.
Reduced pressure to afford a mortgage
Lenders are increasing interest rates, making it more difficult to maintain mortgage payments for many Californians.
Many homeowners are looking for the additional income provided by their granny flat to help pay their mortgage every month. Others have chosen to use the additional income to help pay off their mortgage quicker.
Paying off your mortgage quicker saves a lot of money in interest, sure, but the ultimate benefits is freedom. With your home paid off, you’ve got the freedom to travel, invest, and enjoy life in a whole new way.
Lowered cost of living for loved ones in need
By adding a granny flat to your property, you are creating a lower cost housing option for family and friends. Having a lower cost for housing will allow them to create a better financial future for themselves.
While helping them with their financial future, they are helping you in return by providing additional income.
A better retirement
An accessory dwelling unit is a long term investment. This means you are investing in your future.
Many ADU homeowners move into the smaller granny flat, and rent out their home. This provides a large income to live off of during retirement years, while giving owners the ability to live and retire in the neighborhoods they love. Accessory dwelling units provide stability.
Not only are smaller units in retirement cheaper, but they’re more manageable to maintain, and good ones are designed with long-term care in mind. Not to mention, having smaller utility bills, during the summer and winter months.
Is an Accessory Dwelling Unit right for me?
The benefits are clear, but you may be asking yourself. Is an ADU the right investment for me?
Every family need and motivation is an unique as your property. If the motivations are there, its important to chat with a professional who can provide some guidance. An ADU specialists should assist in helping you navigate the intricacies of making the best decision for you and your family. Answering questions like: Is an ADU feasible on my property? How much should I spend on my ADU? How will I finance an ADU? Questions like these and more.
Although many States and Cities are amending accessory dwelling unit laws to be more homeowner friendly, the process is by no means straight forward.. You don't want to begin a project and be surprised halfway through by changing regulations or misunderstood requirements
Make sure you connect with an ADU specialists who can help you ask the right questions.
Asking the Right Questions
Asking the right questions will help you make a more informed decision. Some questions we suggest contemplating are:
- What is my motivation for building a granny flat on my property?
- Are there any legal restrictions that could affect my project?
- What type of unit will work best on my property, and for my needs?
- What kind of budget will I need for adding an ADU on my property?
- What are some options for financing the construction portion of an ADU project?
Working with a professional should help you answer all these questions. They can help you make the best decision for what you and your family need.
Making the right decision
Ultimately adding an accessory dwelling unit has to make sense for you and your property. There are many benefits to consider with adding a granny flat to your property.
From making retirement easier to lessening the financial burden for your aging parents, adding a granny flat can be a great long-term investment for you and your family.
If you’ree considering an ADU, let us help you make the best decision for your future. Contact us today!