There are many reasons why you might be thinking about moving. Maybe you need more space for a home office since, like many other workers, you’re now able to commute less or not at all. Or perhaps you have aging parents and you’re considering selling your home so that you can have the finances to help contribute to their care. Or you could have grown children who dream of a home of their own but with the cost of living being so high, their dream is a very distant reality. This might cause you to think about making the sacrifice to move out of state so that you can afford two homes instead of one.
But what if there was another way that you could add space and/or housing to your property WITHOUT moving? ADU companies in the Bay Area are making this idea a reality. Here’s why you should consider an ADU for your property:
You Don’t Have to Move!
If home is where the heart is, then it’s no wonder this transition in life is so difficult. You have countless memories in your home that include kids’ birthday parties, holiday celebrations, watching movies on the couch, and so much more. You also may have great neighbors, a killer view, family nearby, or you live in a community you love. Why would you leave all of this?
And can we take a moment to talk about the hassle and costs of moving? Not only do you have to find a new home, but it’s a pain to pack up all of your belongings, move into the new space, file mountains of paperwork, and we haven’t even touched upon new home projects like painting, living through months of a kitchen remodel, and the other hurdles of surviving in a home that’s being renovated.
But what if you could build on your existing property? With an ADU, you can!
ADU companies in the Bay Area have taken advantage of the changes made to the California State ADU Law, effective on January 1, 2021, which reduced barriers, streamlined approval processes, and expedited the building of ADUs. This means that it’s easier than ever to build a small home in your backyard! You can have the convenience of more living space without the complications of moving.
An ADU Can Pay for Itself Plus Generate Residual Income
A second reason why you should consider an ADU for your home is that it’s a great way to generate residual income. In many cases, the monthly cost of your ADU mortgage can be mostly or fully covered by renting it out (we are not lenders, so please confirm all numbers with a mortgage company first). This has many advantages. Let’s say that your kids are young right now or your parents are still able to care for themselves. Great! If you purchase an ADU from an ADU company in the Bay Area and rent it out, it has the potential to pay for itself through rental income by the time you need it for your family usage. Or what if your family ends up not needing the living space? Once it’s paid for, that rental income can be used to fund your retirement. Who doesn’t want – or need – extra income?!?
Are you a small business owner? Wouldn’t it be great to have a large, private office at home? And ADU is the perfect option! Additionally, the business can pay rent to help offset the costs. (We’re not financial advisors, so please discuss this option with your CPA first.) ADU companies in the Bay Area can create a clean, quiet, and professional space for your business that is fully equipped with a private office, full bathroom, and functional kitchen space. No brown trailers or creaky portable buildings here! ADUs are spaces where you can feel confident and proud to welcome your clients into.
Rent Prices Keep Increasing
Now this point has two sides of the coin: first of all, if you rent out your ADU, this is a great opportunity for you to earn money as we just discussed. On the other hand, if you have adult children who are saving for a home, expensive rent is a huge set back towards home ownership. It seems almost impossible to save a down payment when every dime is going towards rent. However, a basic ADU costs less than half of the purchase price of a new home in California. That means less money down and a lower monthly payment. Your grown kids can have a home of their own in less time and with less effort than purchasing a traditional home.
Let’s also take a moment to discuss senior living for aging parents. It costs approximately $3,413 per month for a senior to live in an independent living community, according to Caring.com. Now is this different from an assisted living community which provides medical support when needed and is much more expensive. For parents who are in good health but want their own space, this is an excellent option. They’ll be close enough for you to check up on them but they can still have their own space. Furthermore, they can pick out their own finishes and create a space that is comfortable and specifically designed for them! It’s a win-win situation!
ADU Companies in the Bay Area Make ADUs Easily Attainable
ADU companies in the Bay Area, such as ADU Warehouse, have simplified the process of building an ADU on your property. From permits to landscaping to connecting you to a reputable lender, they’ve taken the unknown out of the equation so you can feel confident on your decision to build an ADU. If you’re worried about financing your project, getting the proper insurance, or getting the amount of rent that will attract renters, they also have partnerships with these professionals so that you have all the information you need to make an informed decision.