Granny Flats The Good And The Bad

Dated: 11/09/2015

Views: 324

Thinking of saving money by creating extra income from your home? Here's one way. Build a 'granny flat' on your property. 

Granny flats are the name commonly given to Accessory Dwelling Units, also known as ADU's. They are small buildings that can be built on the same property as a single family residence, as long as the home meets set back guidelines and is habitable. The idea is that the property owner can allow other family members a place to live such as a widow that would like to be close to grandchildren. When aging parents sell their homes, they have often paid off their mortgage and owe nothing.  They then can bring that cash to the children to build the ADU. 

Some ADU's are remodeled garages, some old outbuildings, some are new construction and some are manufactured housing. Renting out the units may have a return in as little as 5 years, depending on the cost of construction.  Some companies are selling sterilized nursing home grade buildings for convalescent care designed to also be the home of a caregiver, saving thousands a month compared to nursing home costs.

However, as properties add value, taxes go up and many homeowners are not prepared for a tax hike. Nothing is simple!

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