Accessory Dwelling Units (ADUs) - Designed and Built by Triforce Construction in Kitchener-Waterloo

At Triforce Construction, we specialize in creating custom Accessory Dwelling Units (ADUs) for homeowners in Kitchener-Waterloo and surrounding areas, including Cambridge, Guelph, Stratford, and beyond. ADUs are a smart investment that can generate significant income, help pay off your mortgage faster, and provide a comfortable living space for family members like young adults or older parents.

Key Benefits of Adding an ADU to Your Property

• Generate Rental Income: Earn consistent monthly rental income that offsets your mortgage and household expenses.
• Support Loved Ones: Create private living spaces for family members while keeping them close.
• Boost Property Value: Increase your property’s worth by adding high-demand, functional living space.

ADU Financial Proforma: A Real-World Example

Let’s consider a homeowner with the following financial scenario:

• Current Home Value: $750,000
• Existing Mortgage Balance: $300,000 at 5% interest
• Monthly Mortgage Payment: ~$1,750 (principal and interest)
• ADU Construction Cost: $250,000 (rolled into the mortgage)
• Rental Income from ADU: $2,300/month

How the Numbers Work

1. Updated Mortgage Balance:
   After rolling the ADU cost into the mortgage, the total mortgage becomes:
   $300,000 + $250,000 = $550,000
2. New Monthly Mortgage Payment:
   At a 5% interest rate, the new mortgage payment would be approximately:
   $3,050/month
3. Monthly Rental Income Offset:
   The ADU generates $2,300/month in rental income, effectively reducing your net mortgage payment to:
   $3,050 - $2,300 = $750/month
4. Increased Property Value:
   The ADU adds approximately 50% of the construction cost to the property’s value:
   $750,000 + ($250,000 x 0.5) = $875,000

Financial Benefits of Building an ADU

• Lower Monthly Expenses: The rental income from the ADU drastically reduces the homeowner's net housing costs.
• Increased Equity: The property value increases by $125,000, boosting overall equity.
• Faster Mortgage Payoff: The additional income can be used to accelerate mortgage payments or cover other expenses.