Owing to plethora of benefits, availability of backyard homes and ADUs has skyrocketed since last year. More homeowners in California are looking at backyard home as a potential form of passive income. With such, people are open to have wider housing choices in their community.
While you might think that building your own backyard home or ADU would be expensive or difficult. But once you consider all the benefits, the extra effort might seem more worth it than you realized. Building a backyard home or ADU (Accessory Dwelling Unit) can save you money, increase your home’s value, and give you more space to live or rent out to others.
If you are thinking about building one, here are 8 benefits to consider about what’s known as granny flats, mother-in-law units, garage studios, garage apartments, and backyard homes.
Extra Rental Income
A backyard home or ADU unit can provide your family with passive income streams through rent. This can help offset the cost of your mortgage, property taxes, and other living expenses. With thriving return on investment rates, you can also take it as an investment opportunity. In some areas, you can expect to have a rental income of around $2000 to $3000 per month from the comfort of your home. With the continued popularity of Airbnb, it is quite common for people to use their backyard homes as short-term rentals. Additionally, this option may also be an attractive opportunity for retirees who want to generate some extra income.
As we see more baby boomers retiring in coming years, this option will become even more popular because they are looking for new ways to make money in retirement. Renting out backyard home can be lucrative if you have limited funds saved up for retirement!
A Home Office is a necessity
If you're working from home, you know how important it is to have a dedicated space for your office. With a backyard home or ADU unit, you can have a secluded spot that's just for work. This way, you can avoid distractions and stay focused on getting things done.Plus, having your own office space can make you feel more professional and productive.
Enhanced Property Resale Value
One of the benefits of building a backyard home is that it can increase the resale value of your property. If you build an ADU, or granny flat, on your property, you are essentially increasing the number of bedrooms and bathrooms, which are two highly sought-after features for homebuyers. In addition, having an ADU can provide rental income if you choose to rent it out.
With soring home prices and rents in recent years, young adults are preferred to remain at home with their parents rather than venturing off. If you're looking for an affordable housing solution, building a backyard home or ADU unit is definitely worth considering. Similarly, aging parents can choose to live in backyard home letting their adult to be close with their family still maintaining their independence.
Downsize without selling your family home
One benefit of building a backyard home is that you can downsize your living quarters without having to move away from your current property. This can be ideal for seniors who want to age in place or for empty nesters who want to reduce their housing maintenance expenses. Conversely if you wanted to travel and don’t want to sell your family home, you can rent it out as a massive source of income. In that, the backyard will let you in in on your trips home.
When you build a backyard home or Accessory dwelling unit (ADU), you may be eligible for certain tax benefits. For example, you may be able to deduct the cost of materials and labor from your taxes. Additionally, you may be able to take advantage of special tax incentives offered by your city or state.
Host parties and social gatherings
One of the biggest pro of building a backyard home is that you’ll have plenty of extra space for hosting guests. Whether you build a small guest house or a larger in-law unit, you’ll have a dedicated space for visitors that are separate from your main living area. This can be a great way to accommodate out-of- town family members or friends who come to visit often.
A backyard home or ADU unit can be an excellent way to reduce your ecological footprint. By using green building materials and practices, you can minimize the impact your home has on the environment. Plus, backyard homes and ADUs often use less energy than traditional single-family-homes, further reducing your carbon footprint.
If you're considering building a backyard home or ADU unit, there are many benefits to consider. In addition to the extra income you could earn from renting it out, you'll also be increasing the value of your property and adding extra living space for yourself or your family. Plus, you'll be able to customize the space to fit your needs and style. If you're looking for a way to improve your home and add value, building a backyard home or ADU unit is a great option.