Even in an uncertain market, you can still build wealth through investing.
Many of you already know that I am a real estate investor because I see just how beneficial it can be. I’ve been investing all the money that I’ve made since moving to the United States. Drawing from that experience, today I want to discuss how you can use homeownership to build wealth, even in an uncertain market like the one we currently have.
If you own a home in San Diego with plenty of backyard space, consider building an accessory dwelling unit (ADU) to help you build wealth. Recent changes in housing laws now allow you to build an ADU only six feet away from your fence line. You could also convert an existing building on your property into an ADU, such as your garage. The timeline to get your ADU plan approved is approximately between six and nine months, and it could cost between $250 and $350 per square foot to build.
One way to smartly invest your money is to turn the house into a short-term rental through Airbnb or Vrbo, or even a long-term rental if you’d rather not deal with a third party. San Diego County’s minimum price per square foot for a property (depending on your ZIP code) is anywhere from $600 to $750 per square foot. If you built an ADU for between $250 and $250, you’ve already doubled your investment. If you turn it into a rental, you can also use the rent money to reduce your monthly mortgage payments by paying down your principal.
This is a great way to hedge yourself against inflation. What good is having equity in your home if you aren’t using it for anything? Investing in a rental ADU will help you build wealth in both the short and long term.
Don’t hesitate to give me a call or send me an email if you have any questions or would like to learn more about how to become a real estate investor. Hope to hear from you soon!