Accessory Dwelling Units: Are They a Great Investment?

Accessory dwelling units (ADUs) are among today’s popular house additions. An ADU is a great place for your visiting family and friends. It could also be the perfect home for your aging loved ones or children who recently graduated from college. This versatile space could also be your new home office for your small business or workout area.  

accessory dwelling units are they a great investment

Keep reading to find out if an ADU is a good investment for you.

Find Out if You Can Build It on Your Property

Is it legal to construct an ADU on your property? It only makes sense to invest in this addition if you aren’t breaking any laws in the process. You must also consider local codes and regulations to avoid fines or removal of the structure. Zoning ordinances will determine the location and the kind of ADU you can build on your property.  

Know How Much It Would Cost

An unattached ADU often costs less than a detached ADU. Like in bathroom remodeling projects, you can get an idea about the cost of your ADU by getting estimates from different contractors. Besides material and labor, you should also include the cost of obtaining permits and hiring other professionals for your project, like a designer or architect. 

Determine Your Financing Options

Cash isn’t the only option to finance your ADU. You might qualify for a renovation loan or use your home equity line of credit (HELOC). Carefully research your options to determine which lender has the best and most reasonable offer. Do keep in mind that interest payments and lending fees can influence the overall cost of your ADU.

Consider Your Local Rental Market

The internet is a great place to get an idea about ADU rental rates in your area. You could also seek assistance from real estate agents specializing in investment properties. If you have a detached ADU, you can increase the rental price since it offers more privacy than standard apartment units.

Whether you are planning to build an ADU or start a kitchen remodeling project, G.M. Roth Design Remodeling is happy to help. Call us at (603) 880-3761 or fill out our contact form to schedule a consultation. We serve clients around Reading and Chelmsford, MA.

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