Make Your Home A Smart Investment With a Detached Dwelling or ADU
A Westchester Modular Homes client home with a secondary suite.
In today’s market of higher mortgage interest rates and increasing home prices across much of the country, smart home buyers are thinking about how to maximize their home’s investment value. Adding an accessory apartment or secondary suite (also referred to as an Accessory Dwelling Unit or ADU) to your home can offer numerous benefits, including increasing its value and providing rental income.
For first-time home buyers, it can also mean possibly affording a larger mortgage as the rental income can provide additional funds and mean the monthly payment stays the same.
Increased Property Value
First, a secondary suite or detached dwelling increases your home’s square footage and offers additional functionality. A suite with a separate entrance is attractive for all of these reasons:
- In-home staff such as au pairs or nannies can enjoy their own living space while still being in close proximity
- Aging parents or grandparents can stay close to family while maintaining independence
- An extra space also makes a great art studio, office or home gym
All of the above are easily interchangeable as a homeowner’s needs change. The additional living space enhances overall attractiveness leading to a higher appraisal value.
Rental Income: A Benefit for All and Especially First-time Home Buyers
An additional living space with its own entrance can be rented out for a steady stream of income. Additional income can be used to offset mortgage payments or to help fund home improvements or simply increase savings. Either way, additional rental income can improve the homeowner’s financial stability and even offer financial benefits to qualify for a larger mortgage.
For example, if the rental income from the accessory apartment is in the $1,500 to $1,800 range a mortgage could increase to another $240,000 but the monthly payment would stay the same – a huge benefit for first-time home buyers.
Tax Benefits and Investments
In certain circumstances, a separate dwelling unit may make a homeowner eligible for tax deductions or incentives. Expenses related to maintaining the home may also be tax deductible.
As rents increase in the homeowners’ location, the additional rental income increases adding to the overall investment.
In summary, adding an accessory apartment or secondary suite to your home can increase its value by expanding its livable space, attracting potential buyers or tenants, and generating rental income. It offers financial benefits, flexibility, and long-term investment opportunities, making it a valuable addition to your property.
Interested in designing a home with a separate dwelling unit? Give us a call at 845 278 1700 for a complimentary consultation.
About Westchester Modular Homes Construction Corp.
Westchester Modular Homes Construction Corp. has built thousands of premium custom homes usually at a lower cost than traditional construction methods while still meeting the most exacting standards for quality workmanship.
We serve Westchester, Putnam, Dutchess, Orange, Rockland, and Sullivan counties in New York, along with Sussex County in New Jersey and Pike County in Pennsylvania.
Learn more by joining one of our convenient virtual tours of our factory. You can sign up at Modular Home | Westchester Modular Homes Construction Corp (wmhconstruction.com)
You’ll learn first-hand about our quality, service, innovation, and agile speed and have a chance to ask your questions about modular home building
Access our free guide that outlines the key features of building a modular home.
Or give us a call at (845) 278-1700 and we’d welcome the chance to help you start planning your dream home.
