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3 Things You Should Know About ADU Investment In San Jose



|Last Updated: 15 Apr 2024

Homeowners who are looking for long-term returns on investment usually weigh things ahead before jump-starting any project.

The city of San Jose has recently amended the property requirements and for building an ADU to address the prevalent housing crisis. With the new eased up zoning regulations, more homeowners are turning towards building Accessory Dwelling Units (ADUs) since it can accrue a steady and substantial income that is beneficial for a family’s daily needs. 


If you are one of those who are all set to kick off their new investment project then this one’s for you. Make sure you’re all prepped up before embarking on something that would not only transform your house but would also change your long-term perspective as a homeowner and as an investor. To give you a brief overview of what’s in store for you, here are three important things you should know about investing in ADU San Jose.


#1 There Is an Affordable Way to Build Detached ADUs

Affordable Way to Build Detached ADUs
Most homeowners are having second thoughts when it comes to detached ADUs. It is because of the exhausting process of running through its prerequisites such as complicated city permits and unanticipated fees. Fortunately, there are emerging home renovation companies that are offering hassle-free services that’ll cut through the red tape surrounding ADU San Jose projects. You just need to work with a team of ADU builders who offer standard construction plan layouts that are preapproved by the City. It also good to take note that there might be plans that are still subject to any site concerns but in general, this is one low-cost way to your future ADU.


#2 Garage Conversions are Common and Cheap

 Garage Conversions are Common and Cheap
Converting an already existing space in your house is the most affordable ADU option in San Jose. If you’d like to invest in ADUs (aka granny flats), it is wise to opt for the most cost-effective way to do it. The average cost for converting an existing space—regardless of what type it is—ranges from $60,000 to $100,000. It is way cheaper than building a new ADU which usually costs $130,000 to $180,000. 


 #3 ADUs Are Long-term Investment

ADUs Are Long-term Investment
Did you know that you can earn up to $42,036 (annually) once you’ve had your ADUs rented out? This amount is just an initial estimation, you could increase your property’s value depending on how you want ADUs to serve your purpose. Always keep in mind that ADUs are a long-term investment so you should do all the best you can to preserve it for several years. Even a $100,000 Garage ADUs in San Jose that was well-kept-up for over 30 years can bring 1.5 to 2 million dollars in value—that’s a 15x return on investment.


From a further look, investing in ADU San Jose could be painful and costly (especially if you’re doing it all on your own). This wouldn’t be the case if you hire the right ADU builders who would make your dream plan happen. Pro tip: Home renovation companies like Eano are offering free online consultations. Wanting to start your ADU investment? Download our latest ADU guide and book your appointment with Eanovation today!


*All images used are from the internet.



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