Lots of people dream of upgrading or expanding their homes in order to have more living space. But before you think about putting your home on the market, consider upgrading your garage into a livable area using the equity on your home. This source of extra cash can help you turn that oversized room into your very own "Man Cave" (or "She Shed"), home office, tiki bar, or an ADU! Here are some reasons why a garage conversion loan might be right for you.
- Just like the 8-track player, cars are becoming less prominent.
Blame it on rideshare services, carpooling options, or remote work, but in our changing world fewer people are expected to own cars – up to 80% fewer by 2030 according to the Stanford study referenced in this 2022 Forbes article.
- A garage conversion could give you a decent return on investment (ROI).
The economics of converting a garage into a livable space are usually quite favorable, but before you get started with your conversion, do your research and crunch the numbers. Determine how much value you can add to your home if you convert the garage into a living space by comparing homes with similar square footage and conversions and what they sell for.
- Earn some extra cash.
There's an increasing number of ways to make money with a converted garage. For example, you could rent the space to people who may need extra storage, a dedicated workspace, or even overnight accommodations or a vacation rental, i.e., Airbnb, VRBO, etc. This upgraded space could also be used for a side business, home office or a small casita or "granny flat" for an aging family member. This additional source of income could help pay for the conversion, and the longer you plan to live in the space after a remodel, the more money you could make for your efforts.
- Like the prices of gasoline, housing is getting more expensive.
Moving to a new home is a quick way to expand your living space, but it can be costly. In the third quarter of 2021, home prices spiked by double digits in major metro areas across the country. While you're likely to benefit as a seller, your position as a buyer in a hot market may not be as strong. In addition, the cash equity gained during the sale of your current home may fall short of what you need to buy a larger home in your area. By converting your garage into a living space, you can avoid the hassle of a move while gaining the additional square footage you desire.
Whether you're feeling nostalgic or prefer something more contemporary, like a "Man Cave" or a "She Shed", a garage conversion could provide the extra living space you need without putting your house on the market. A Logix Garage Conversion Loan can help you tap the equity in your home and fund your dream project today.