In 2023, it’s crucial to be creative with home improvement investments, and this is largely because so many other people are attempting to capitalize on similar renovations and general construction investments.
But when it comes to adding value to a residential property, one of the best investments by far is building an ADU, or accessory dwelling unit. These second living spaces will essentially be like tiny homes that offer a sleeping area, living space, bathroom and kitchen. ADUs come in many different forms, including detached units, above garages, attached to primary residences, and even within primary residences via garage and basement conversions.
The ADU specialists at Dryve Design Group, Inc. have teamed up with us to provide 4 reasons why ADU floor plans are incredible investments, so take it from the pros in that ADUs can end up changing a homeowner’s entire life for the better!
4 Reasons Why You Should Consider Investing In An ADU Floor Plan
ADUs are awesome long-term investments for any homeowner, and they’ve been proven to provide households with passive income sources and so much more. Here are four big reasons why you should consider investing in an ADU:
Improved Property Versatility
Homes without ADUs can’t even compare to homes with ADUs when it comes to the property’s overall versatility. ADUs generally are 1-bedroom units, and this is incredibly attractive for short-term renters and single individuals who would prefer not to stay in a larger apartment complex.
ADUs are often a good investment for multigenerational households, particularly when grandparents want to live close by but still have plenty of privacy. ADUs are also often used as home offices, guest houses, Air BnBs, and even long-term rental units.
There are even many instances in which a homeowner will move into their property’s ADU, and then rent out the primary residence. So there’s truly no telling just how much financial freedom an ADU can provide!
Significantly Increasing Residential Property Values
There’s no doubt about it that ADU construction can sometimes be pretty extensive, because proper permitting, designing and construction costs all need to be taken into account. But what’s great about ADU investments is that they always pay for themselves in the long run, and sometimes in a matter of just a few years.
There are far more advantages than disadvantages when it comes to owning an ADU, and this is particularly the case in urban neighborhoods where rents tend to be higher. ADUs are considered to be investments on free dirt, because the property owner already owns the land (which is a huge advantage).
ADUs are known for significantly increasing a residential property’s resale value, mainly because ADUs are so desirable amongst homebuyers these days!
Much More Affordable As Compared To Purchasing A New Rental Property
ADUs are always a much better alternative to actually purchasing a new investment property, and this has particularly become the case in recent years as property prices have skyrocketed. Building a new ADU may cost a good amount, but even purchasing a duplex would be arguably twice as much. And when you invest in a new rental property, there will likely be regulations established in terms of how much rent can be incrementally increased at that property.
So ADUs are always a more affordable investment as compared to new property purchases, and they often provide returns a lot faster as well.
Creating A Social Impact
ADU investments also frequently give back to local communities, and it’s safe to say that most American cities are currently experiencing a rather significant housing crisis. Today’s housing crises are largely due to a lack of right-sized houses for individuals and smaller households, so there’s a huge demand for ADU-sized units but not enough supply.
So when a homeowner invests in an ADU and then rents it out to a local resident, they’re not only investing in local construction teams and architects, but they’re also providing a place for a community member to live.
And what’s even better is that ADUs are great for the environment, because the long-term renter would be emitting less greenhouse gases as compared to living in a conventional apartment complex!
Reach Out To The ADU Experts At The Dryve Design Group, Inc. To Learn More About ADU Investments!
ADUs have proven to be incredible investments for all residential property owners, but there of course are a lot of factors that investors need to keep in mind while preparing this type of construction project.
But the good news is that there are many great ADU companies out there like the Dryve Design Group who make these investments a lot easier. You can learn more about how an ADU investment could work on your property by clicking on the link at the top of this page to the Dryve Design Group’s website and initiating the first steps towards a valuable ADU at your home!