The tiny house movement is very attractive to people who are searching for ways to lower their cost of living in order to work less or avoid a mortgage. While it's common to see claims on the internet of tiny homes being build for only $5,000, less than one year's rent for many people, these sticker prices often don't include other costs associated with buying and living in a tiny house. Before you get your hopes up about the rent-free life a tiny house can offer, consider these unseen expenses.1-800-805-8354 to Connect with a Top Real Estate Agent in Your Area - ANYWHERE!
WONDERING WHAT YOUR HOUSE IS WORTH?
- Thetinylife.com
Tiny Homes - The Up Front Cost
As it turns out, the $5,000 tiny home is rare. Even an experienced builder with access to salvaged material can more likely expect to spend $15,000 on a tiny house. A custom-build tiny home with all planning labor outsourced can be had for figures in the $80,000 range. Still, these prices are cheaper than a conventional house, but it will take more than a few months of saving your paycheck to afford. Even if you do all the planning yourself, you will likely need to hire out some of the labor to a carpenter, electrician and plumber.
Buying Land for your Tiny House
When you buy a conventional house, the lot of land is part of the package. Tiny homes do not come with land, so if you plan on parking somewhere long-term, you'll need to shell out for your own acreage. Land without a house
Renting Space
A mobile tiny house can be ideal for this who wish to move around with the seasons. However, this life is far from rent free. In order to park your mobile house and get access to utilities, you will need to pay rent at an RV park (typically $300), or bargain with a landowner for a place to stay. As you can see, a tiny home does not necessarily eliminate your monthly rent bill.
You might Also Like: Should I Buy a Condo or a House?
The Right Car for your Tiny House
A mobile tiny house will put you right out of being able to get by with a budget, compact vehicle. Depending on the size of your home, you will need a sturdy vehicle with enough horsepower. You will have to purchase your next vehicle based on its ability to toe rather than up-front cost and mileage.
Permitting Fees
Even if you own land and can do most of the work yourself, you'll still need to fight through municipal red tape to get your building plans approved, and that costs money. Some municipalities have more relaxed building laws than others, but some might refuse you a permit for a house under a minimum square footage. Many municipalities prefer that an engineer or architect signs off on your design, which will cost a pretty penny in consultant fees, even more if the plans need to be revised.
Others have Read: Home Security Tips | How to Prevent Break Ins
Storage for your Tiny Home
Many people who move into tiny homes expect to downsize their life drastically. However, moving from a 1,500 square foot house to a sub-100 square foot tiny house may trigger a reality check. You cannot possibly keep all your possessions in a tiny home. For those you don't have space for and truly can't part with, storage is the only option, which means yet another monthly bill.
Living in a tiny home can be a cost-effective housing solution, and many tiny home dwellers are eventually able to downsize their work schedule or sock more of their paycheck into savings. However, it's wise not to be lured in by the low-dollar claims and to plan finances accordingly before jumping on the bandwagon.
Considering a move?
Call Ballen at 1-800-805-8354 to be paired with a great real estate agent anywhere in the nation.
