Will I have to pay more property taxes if I add an accessory dwelling in Santa Cruz?
Sarah Foster Sarah Foster

Will I have to pay more property taxes if I add an accessory dwelling in Santa Cruz?

A one-bedroom accessory dwelling like this one costs around $400,000 including design, permitting, all site work/engineering, and construction. When adding a “granny flat” or accessory dwelling of this size in Santa Cruz, you’ll a tax increase equal to about one-half of one percent of the full cost of the project. Here’s what that means for this property in Santa Cruz.

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Adding a detached office/bedroom in Oakland
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Adding a detached office/bedroom in Oakland

These Oakland homeowners wanted to build a detached office/studio that could also be used as a guest room. They also wanted to remodel part of the main home. The existing office would become a bedroom, and the existing half bath/laundry would be upgraded to include a shower. One of their requirements: preserve the property’s beautiful trees and tea house. Here’s the design.

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Converting a basement into an apartment or ADU in San Francisco
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Converting a basement into an apartment or ADU in San Francisco

The basement, which was entirely for storage, makes the perfect place to add an accessory dwelling unit. With a living/dining area, kitchen, bathroom, and patio, this will be a great home for a single person, a couple, or a pair of roommates. Plus, the homeowners don’t have to give up all of their storage. A storage room accessible from the main home is included in the plan.

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What is the increase in property taxes when building an accessory dwelling unit in San Bruno?

Considering the amount of money the family will save by building the ADU, the tax increase is quite small. If they move their grandparents into the unit, they’ll save at least $24,000 per year on housing. If they use the space for the immediate household, they’ll save by not moving to a larger, more expensive home (and they’ll get to stay in the neighborhood they love).

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Design for a detached office in Oakland

Design for a detached office in Oakland

Knowing the value an accessory dwelling can provide, he asked New Avenue to create an accessory structure that could be converted into a full accessory dwelling later. The designer created a 288-square-foot structure with space to add a kitchen and a shower in the future. Here are the drawings.

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Accessory Dwelling WHAT?
Sarah Foster Sarah Foster

Accessory Dwelling WHAT?

What to call that beautiful new addition/backyard cottage/in-law unit/renters’ apartment/guest house/granny flat that will change your property forever…

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Floor plans for a one-bedroom guest house with kitchen, bathroom, and attic in Berkeley
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Floor plans for a one-bedroom guest house with kitchen, bathroom, and attic in Berkeley

If Patricia rents out her new ADU, she can use the rental income to pay for the mortgage on the main home and the mortgage on the ADU. Or she can use the money to cover other expenses such as education, travel, retirement…anything she needs now or in the future. Here are the floorplans and elevations for Patricia’s new ADU in Berkeley.

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Converting a workshop to a guest room or home office in Redwood City, CA
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Converting a workshop to a guest room or home office in Redwood City, CA

Robert and Rose of Redwood City, CA, owned a beautiful property with a detached workshop and a detached garage. They came to New Avenue looking to get more from their existing structures through a major remodel. New Avenue created a design that would unite the two smaller structures, making the most of the existing buildings while forming a usable space that supports the homeowners’ needs.

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Increase in property taxes when adding a second home in San Pablo, California

Increase in property taxes when adding a second home in San Pablo, California

The owner wants to remodel the small, one-bedroom home on his property. Eventually, he will add a larger home and turn the existing house into an accessory dwelling.

The remodel will cost $138,000, and the new home will cost $500,000.

Here’s how property taxes increase when adding the new home.

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Start your journey

Reach out to New Avenue today to begin the transformational process of adding an ADU, renovating your home, and designing and building a custom house for your family.