Types of Adus
An garage conversion ADU proves cost-effective by repurposing existing space, making it quicker and cheaper to build while adding significant property value.
When you invest in converting your garage into an ADU (Accessory Dwelling Unit) and expect to earn a 13.5% return each year, you can use a simple rule to estimate how long it will take to get your money back.
This rule is called the "Rule of 72."The Rule of 72 says that if you divide 72 by your annual return rate, you'll get the number of years it will take for your investment to double. So, for a 13.5% return rate, you divide 72 by 13.5, which equals about 5.3 years.In plain terms, this means it will take a little over 5 years for your investment in the garage conversion to pay back twice the amount you put in.
This is a rough estimate, but it gives you a good idea of how long you'll need to wait to see significant returns.
Garage conversions are cheaper because the main structure (walls, roof, and foundation) is already there. This means you spend less on construction. While building a new ADU can cost between $100,000 and $200,000, converting a garage usually costs between $20,000 and $50,000.
“Choosing a garage conversion is a smart, economical way to increase your living space."
Because it costs less, more homeowners can afford garage conversions. Estimates suggest that up to 60-70% of homeowners can afford a garage conversion, compared to only 20-30% who can afford building a new detached ADU.
Let's talk about cost-effective ways to build your own ADU.
We will go over five unique ADU design ideas perfect for Orange County properties.
In order to help you choose between attached and detached ADUs, we'll look at their primary distinctions in this blog post.
