With the many choices when it comes to real estate, it can become quite hard to determine which one can be a good investment. That's why it's a good idea to do your research first to find out your options.
You may find that a majority of these investment options are the typical ones, including townhouses, condominiums, bungalows, and apartments. Aside from those common options, there are other markets that you can consider investing in. One example is the garage apartment.
What exactly is a garage apartment? How do you find one? How secure is your investment? Find out right here.
What is a Garage Apartment?
Garage Apartments are a type of ADU or accessory dwelling unit. A garage apartment involves the conversion of an area, within an existing structure, into a living space.
Here are the two types of garage apartments:
One-story garage
In this type, the tenants may be close friends or relatives of the homeowners. Thanks to the one-story setup, the tenants will most likely need to pass through the main house to shower, for example. This setup, however, still offers privacy for both the tenant and the homeowner.
Two-story garage
These units are freestanding garages that have a storage unit on the second floor. But not just any two-story garage can be called a garage apartment. It has to have basic amenities like water, electricity, and plumbing.
Read: Are You Ready to Go House Flipping? Here Are Some Mistakes You Need to Avoid
Why a Garage Apartment?
Garage apartments are a great way to make use of space. Homeowners can have the garage space occupied with their vehicle or use it as a storage. The other parts of the home can be used as a living space for day-to-day operations or guests.
Advantages of Investing in Garage Apartments
The main advantage of garage apartments is their size. You can have an entire living space with only a small space. It is also more convenient because you don't need to add an entire house to the building while still earning your rental money.
Disadvantages of Investing Garage Apartments
While there is a positive side to garage apartment investing, there are also a few drawbacks to it. The first one is that the renovation can be expensive. You also need to check exisiting guidelines and required permits in your area, and that involves some legwork.
Also, when it comes to one-story garages, the tenants may need to make use of the homeowner's utilities like kitchen and bathroom.
Is a Garage Apartment the Right Investment for You?
Garage apartments can be the perfect investment, but they're definitely not suited for everybody. But if you have extra space as well as an alternative parking space, extra budget and are willing to work on it, this may work well for you.
A garage apartment has the potential to add value to your home. For one, it can improve the curb appeal of your home. However, it is not always guaranteed that a garage apartment will increase the value of your property. Some potential property buyers may not appreciate the value of having two homes in one.
