Should You Buy a Property With an ADU in 2021?
Buying a house can be an exciting time. It’s a chance to find your new home and a new place to make years of memories. However, any house you buy is an investment.
As such, you want to find a home that appreciates as time goes on. Several features can help attain that increased value, one of which is an accessory dwelling unit.
An accessory dwelling unit (ADU) is a smaller, secondary building or space resting on a larger building plot. They can significantly increase your home value in 2021. In this article, we’ll explore more about ADUs and how they can benefit your household.
Are ADUs Worth it?
ADUs are excellent ways to add long-term equity and value to your property. So long as they remain well-kept, an ADU automatically adds significant value to your property when you decide to sell it.
You can also use an ADU as a way of making passive income. For example, if your ADU is a detached one (not in a garage or other space joined to your home), you can rent it out to people and collect money from their rent and bills.
However, to understand this more fully, we’ll first need to examine types of ADUs. You can learn more about this in the next section.
Types of Accessory Dwelling Unit
There are several types of ADUs in 2021, each with its advantages. One of the most common forms is the built-in ADU.
This form is a part of the house but separated by an interior wall. A universal feature of built-in ADUs is their separate entrance and exit from the main structure.
Another frequent ADU type is the above-garage ADU, which consists of an apartment building over a free-standing or attached garage. Often, business owners love to use the above-garage ADUs as an office for their home business.
Carriage houses are the last common ADU type. These are usually free-standing, small houses that share the primary home’s lot. They’re often located near the property entrance to give them a sense of privacy from the main household.
Who Can Build An ADU?
Who can build an ADU often depends on the building codes in your area. Usually, an architect or contractor is the standard. These workers have the experience to construct what you need.
Moreover, they have more reputability as builders. As such, they can more quickly receive the required building permits for the job.
Benefits of ADUs
We’ve noted several benefits of ADUs throughout this article. First, they help to add long-term value to your property. As such, you can sell the property for more than you purchased it.
Another benefit is its potential for earning passive income. Owners of ADUs can use the space for house renters. Alternatively, you can use the ADU for your storage or workspace.
Mortgages and Taxes on ADUs
The biggest downside to ADUs is the increase they bring to your property taxes. When you add an ADU, most areas factor it into your property taxes and mortgage payments. However, if you use the ADU as a source of income, you can offset the additional costs.
Search For a Property With an ADU
As you can see, an accessory dwelling unit brings many advantages. For example, you can use it for extra space to work from home or use it for additional income.
Suppose you’re interested in owning an ADU; excellent! Use our services to search for properties with ADUs in the Salt Lake City area today.