Why ADUs Make Financial Sense
In California, previous to 2016, legitimately building an ADU was met with a horde of complex local regulations that made ADUs financially unviable. In the present, due to streamlined ordinance changes in the state legislation, homeowners in single-family neighborhoods are now able to easily and legally build, convert or permit secondary dwellings on their property. ADU Resource Center can help you with ADU Construction loan in Los Angeles. Next are the main reasons why building an ADU makes financial sense for homeowners:
Benefits for All Parties Involved
ADUs are financially viable for proprietors in many ways. First, the rent paid generates a new revenue stream. Second, many expenses related to an ADU rental unit are tax-deductible. Third, it is an ideal way for homeowners to build the asset value of their existing property.
For renters, ADU Construction in Los Angeles provides a source of affordable housing in an expensive market. Also, for some perspective renters, ADUs make sense financially because they go perfectly with modern lifestyle choices. More and more millennials are comfortable living in less than 800 SF of space at a modest cost because they would rather spend on travel and other outdoor activities.
Long-term Investment
ADUs are perfect for a person that’s looking for a relatively low-maintenance way to earn an extra $850 to $1,800 a month. An Accessory Dwelling Unit generates an ideal passive income stream that many homeowners don’t realize is available to them.
Even better, if a person thinks that maybe it’s time to downsize to a smaller home, they can build an ADU in their own backyard and live there while renting out the main home on your property to tenants who need the extra space. In this scenario, the person could be earning closer to $1,800 to $2,400 a month in rent.
Keep your Elderly Parents Close
When health issues related to age begin to occur or an aging parent simply becomes unable to live alone, a person may be facing a housing emergency — struggling to find a living arrangement for one or more family members with no time to spare.
What are your options? A costly Nursing Home? That they continue living alone despite the risks? No. In situations like this one, an ADU Construction in Los Angeles comes perfectly into place, not only to help a financial emergency but to secure a future.
ADU Construction Los Angeles is incredibly convenient, they are the perfect flat for young adults, small families, students, and retired seniors. Tiny and incredibly compact, an ADU has all the privacy and comfort of an apartment but it is cheaper and easier to take care of. For more information about building your cozy backyard house, contact us at (310) 974-3174 or schedule a free consultation.
