ADU can be a good investment as it provides additional accommodation and helps increase the property value. As per the market trends & projections, the ADU market will reach USD 10.6 Billion by 2030, showing phenomenal growth at a CAGR of 18.6%.
ADUs are helpful in providing additional living space. You can use this unit for a home office, gym, library, or separate dwelling unit for your parents or caretakers.
So, ADUs solve the space issues in your home. Moreover, it can increase the property value to a great extent. You can also get tax depreciation through ADUs.
ADU can be a good investment due to several reasons. Let us discuss them to understand why building an ADU can be a good investment.
The older people need our attention in their old age. So, if you have senior members in your house, a Backyard apartment can be a great addition to your home. If you want to take care of them by keeping a close watch on their health, you can think about building an ADU on your property.
This way your parents can have a separate unit to live in without compromising their privacy.
ADUs help you get more space whether you build only a living space or a separate house with all the amenities available in it. You can store your valuables and make the most use of this unit.
You can use this extra space for so many purposes. Moreover, this will increase the value of your property. Buyers will get attracted and interested in buying your house by paying the desiring amount.
ADUs help you get more space whether you build only a living space or a separate house with all the amenities available in it. You can store your valuables and make the most use of this unit.
You can use this extra space for so many purposes. Moreover, this will increase the value of your property. Extra square footage means increased resale value.
You can estimate the increase in your property value based on the current value of your property. According to market trends and projections, an ADU can add 30% to your property value.
Hence, this can significantly increase the value of your existing home and yield you financial benefits. On the other hand, a junior ADU might not add that much value to your existing property.
So, you can ask the experts to estimate which type of ADU can yield you the maximum benefits so that you can include one in your property.
ADU can bring you additional income. You can rent this unit to others for an extra income. So, it can be financial support for you and help you pay your loan amounts if you have taken it while building your ADU unit. An ADU unit can also help you pay your other bills if you give it on rent.
You can have tax benefits with an ADU unit. Several states have a law that allows tax depreciation for people who build ADU on their property. In this way, it can be a good investment also.
If you are working from home or running a home-based art business then you will need a lot of space for this. So, you can convert your backyard apartment into an art workshop or a home office to work from home or run your home-based business.
This will also ensure that you concentrate more on your work if you have a separate workspace in your house.
As per ADU market trends and projection, ADUs can be a good investment as they yield multiple benefits for the homeowners. However, you should hire a professional to construct your ADUs without any hassles. A professional will help you select sustainable materials for your ADU and make you learn the green living practices for tax depreciation.
Factors that influence the ADU market trends and projectionare:
ADU lowers the need for new infrastructure.
The ADU (Accessory Dwelling Unit) market is segmented on the basis of type of ADU, design, construction, purpose of ADU, and location.
ADUs can be of two types; newly constructed units or conversion units. Both types of ADUs give extra accommodation and storage space. However, constructing detached ADUs can give you better returns.
You can rent this house to earn extra income. It can also increase the resale value of your property. So, detached ADU units are beneficial for getting financial benefits.
