Why Should You Invest In A Granny Flat? In Los Angeles
Published By Brittnay Sharer
Date: 04/11/2020
Are you looking to make some money with your home? Do you have a loved one who needs space, or you want them close by? Or maybe you are looking to do something with the open space on your property. Have you been hearing about granny flats and want some information? If any of these things sound like something you would be interested in, then you should continue reading this article and I will discuss some of the benefits and how easy it is to add a granny flat to your property!
Why should you invest in a granny flat In Los Angeles?
- You own your home and want to add value to the property while making money to increase your own value.
- There is a need for rental units in your area and you can provide a unit.
- You want to move family members closer to you and give them their own space.
- You have open space on your property and like the idea of adding something to it that will increase home value and provide extra space to be used as needed.
Are Granny Flats In Los Angeles Legal?
The first question that everyone asks when making the decision to build a granny flat is if it is even legal. Here in California there have been many rules about the do and do nots of granny flats over the years and often enough ended up with the illegal building of them on properties, due to the income from renting. Click here for more info https://www.hcd.ca.gov/policy-research/AccessoryDwellingUnits.shtml. The real, simple answer is yes, they are legal and with new legislation being passed it is even easier than ever to attain the permits and licenses to build a granny flat. This should be a bigger push to why you should build one.
What is the basic overview of the Granny Flat process?
This is a great question to ask! The idea of building a small house on your property can come with all kinds of anxiety and stress and just thinking of the start process; paperwork, meeting with people like we all just have the time to sit around and file papers; you need a nap just thinking about all of it. Well, its actually a little easier than you think, and if you use the right company, wink wink like us, then the process is even easier as we do much of the work for you.
Here is the basic process:
- You decide you want to do a granny flat on your property and begin looking for a company.
- You contact us and we being the process of emailing. We get you our floor plan designs and what you are looking for in the granny flat and the space you have.
- You decide on a floor plan and submit it to your local government building and safety for permits. Once you obtain a permit you can begin to build.
- You have the contractor picked out and building starts, taking up to 12 weeks depending on size of granny flat.
- Granny Flat is done and you can rent or have family members move in!
Whew, now doesn’t that sound easy. The biggest part on you will be picking the professional to use and securing the financing. It's best to go with a company that does not only floor plans but contracting as well and has a staff that is ready to work with you. We have a diverse team that features both floor plans and an inhouse contractor so you do not have to have more than one company and we can even just do floor plans if you are not ready to fully commit to a granny flat. Now on to the biggest question, how can I afford this…
How much is a granny flat in Los Angeles and how can I afford it?
These are the two most asked and more varied questions we hear and a little more complex to answer. Let’s separate them down do better explain. First how much is a granny flat? Well, it really depends on you and the granny flat itself. There are mainly two costs associated with granny flats- the blueprint and permits/fees and the actual construction costs.
- The first, blueprints and permits will run you between $3k -7k depending on your neighborhood and how big you plan on your granny flat being.
- The second, construction and design, can be around $80k-100k. Construction and design costs can differ though due to size, materials, and customization. The larger the granny flat, the more cost. Real wood floors instead of laminate or carpet? More cost. Built-in cabinets and bookshelves, yes? You guessed it, more cost.
The more you put into the granny flat is obviously going to affect the costs but it is worth it as you get more out of the granny flat. The nicer the granny flat the more value to your property and if you plan on renting, the more you can rent it out for. And the granny flat will pay for itself very quickly if you are renting it out. Think of it this way, if the total cost ends up being $100k for a 2 bedroom 1 bath, and you can rent it out at $1,800. It would take you just under 5 years to pay off the granny flat, and if you are renting the rent is what pays for it! You don’t have to scramble for the extra cash. Now on to the main part, how to pay for the costs.
How can I finance or afford the construction of a Granny Flat in Los Angeles?
Financing is going to be a little harder. Usually, major banks do not offer mortgages or packages that include granny flats. Typically, it will require a personal loan as most do not have the cash just laying around for a six-figure investment. Your four best options will be
- Home Equity line of Crédit
- Home Equity Loan
- Construction Loan- if you can qualify
- Personal Loan-if you can qualify.
Hopefully, this article gave you a little more background on granny flats and what to expect. Please check out the rest of our site and other articles to learn more. And don’t hesitate to reach out to our team so we can help make your home projects come to life!