Is Building an Accessory Dwelling Unit a Good Long-Term Investment?

The California Department of Housing and Community Development approved accessory dwelling units from the 1st of January 2019 owing to the many benefits of this type of dwelling.

Previously, accessory dwelling units were not legal as they violated the construction codes.

With the approval, however, even previously constructed accessory dwelling units can now get approved. This offers you an opportunity to invest in this unique form of dwelling.

Looking for a new long-term investment? Consider building an accessory dwelling unit!

We go over the investment potential of accessory dwelling units below.

The Benefits of Accessory Dwelling Units

Among the reasons you should build yourself an accessory dwelling unit, also called a granny flat, in-law suite, or a backyard home, include the following:

1. They’re Affordable

Building an accessory dwelling unit costs a fraction of what a medium-sized house would normally cost. The savings come in various ways one of which is that you don’t need to pay for the land. These tiny houses are simply constructed in your backyard with the land you already own.

You also won’t need to buy major new infrastructure to build granny flats. You can build most of them with leftover materials from the construction of the main house. Even if you went out buying everything from scratch, you won’t incur as much costs as you did with your main house.

Owing to their small size, you won’t need to include some amenities with these houses. As their name suggests, they are secondary dwelling units to the main house. You don’t, therefore, need to include facilities such as elevators, cold rooms and structured parking with them.

2. They Save on Living Costs

According to a Harvard research, the median rent for the country has gone up by at least 20 percent. The same studies point out that the median housing cost has gone up by more than 41%. For comparison, the income for families in the low to medium families has only increased by 5 percent over the same period of time.

This mismatch in costs and income has led many to seek ways of saving money, especially with housing. Accessory dwelling units offer one of the best ways of saving money when living with family. They cost little to construct, and much less to maintain in comparison with average-sized houses and renting a house of a similar size respectively.

3. Helps Keep the Family Together

The generation gap between elderly parents and teenagers in the family can be fraught with issues especially when it comes to balancing living costs.

The elderly find it hard to maintain their homes and stay with their loved ones as they are not actively earning enough income to cover their living costs. Accessory dwelling units offer them a chance to live with the rest of the family in houses constructed to meet their specific needs.

For the younger generation, they don’t need to go away from home once they’ve grown up and need their own privacy. Building an ADU gives them that privacy while still keeping them within reach of the rest of the family.

Besides these, family members and friends who may be in a difficult situation financially or otherwise can benefit from these dwelling units.

4. They Increase the Value of Your Property

An ADU (accessory dwelling unit) is a win for everyone no matter their age. Older generations are increasingly finding it hard to meet their living costs with the rising cost of healthcare and other aspects. Having a part of the home that takes care of them at a fraction of the cost is a major advantage to the whole family.

The same rising costs affect younger generations whereby it has become more tasking saving enough to buy a house. With an accessory dwelling unit, they need but a small amount of money to have their own dwelling quarters.

With an accessory dwelling unit, your property will increase in value.

5. You May Use Them as Home Studios or Offices

In Silicon Valley, the cost of renting a house or office is sky high at the moment. If you’re able to work away from your employer’s office, an AUD is the best solution for you. You’ll incur very little extra money and, at times, your company can reimburse you for using the home office.

If you’re in a partnership, your partners can even pay for the use of your dwelling unit as their office. In some cases, you can receive income tax deductions with your home office.

The privacy afforded by a home office or studio far outdoes that of a workplace office. You can design the office the way you want and include whatever you wish to have in your place of work. Better yet, an accessory dwelling unit will give you more space than the average office for your work.

6. Offers You an Opportunity to Express Your Design Philosophy

Normal houses have specific designs that you can’t stray too much from. With an accessory dwelling unit, you have a wide array of designs you can choose from. If you get the right contractor, you can choose a design from the ground up depending on your needs.

The number of dwellers, the purpose, and the available space play a major role in designing this type of house. You’re sure of getting the best out of this structure compared to a typical house where wasted rooms and unused amenities may exist.

Build Yourself an Accessory Dwelling Unit

This kind of structure will save you lots in construction costs, help you keep your family together and give you extra space you can use as an office or studio. You also improve the value of your property with an accessory dwelling unit without spending a fortune on it.

For the best accessory dwelling unit, Acton ADU has a team of experts who always deliver quality results. Contact us today and get your unit constructed in record time.

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