A growing fad in the real estate industry is the increased demand for tiny homes. All you need to do is turn on the TV almost any night and you can probably watch a program dedicated to this niche. As many people who love their tiny homes, an equal number have no desire to live in a house that small. For some first-time buyers or newlyweds, it can be exactly what they are looking for. However, like most everything in real estate there are pros and cons to every potential purchase. Here are a few pros and cons of tiny home living to help figure out if it is best for you.
The biggest motivator with tiny home living has to be affordability. Instead of walking into a new home saddled with a large mortgage payment, you will have little to no overhead. This gives you the flexibility to ramp up savings, pay down student loan debt or travel on a whim. You can live without thinking about constantly trying to scrape money to pay the mortgage every month.
Most tiny homes are not fixed to a specific parcel of land. Because of this you can choose your location based on desirability. Depending on the specific square footage you may be able to transport in a large flatbed or worst case you can hitch it to a tow truck. As long as you are not going over bridges and traveling hundreds of miles you can pick and chose where you want to live.
Reduced housing expenses.With limited square footage you will also have reduced housing expenses. There is a huge difference in having to heat 500 square feet and a home with 2500. You won’t spend a lot of money on groceries, simply because you don’t have the room for them. Every utility bill in a tiny home will be a fraction of the cost compared to a traditional sized home.
Watching a show on living in a tiny home can be a great way to eat up 30 minutes but living in one can be a different story. The reality is that living in a tiny home is a huge adjustment. Think about living in a home the size of your bedroom growing up, with someone else. Sure, you can save money, but it is a big adjustment that is not for everyone.
If you like to easily access everything you accumulate, a tiny home is not for you. As obvious as it sounds, a tiny home lacks a good amount of storage. In fact, you will not be able to store most of your basic household items. Gone are the luxuries of a big closet and ample attic space. You will be forced to get creative with where you put the kitchen table, let alone where you store your old scrap books.
Mortgage ability.Living in a tiny home means buying it outright. Due to the property type and loan size it is difficult, often impossible to find financing. Without the average purchase price of $30,000 you will not find a tiny home. For that amount you could easily have enough down payment for a home with triple the square footage.
An additional problem with tiny homes is that they are often difficult to sell. They are a unique niche that require a specific kind of buyer. This doesn’t mean they can’t be right for you, but you need to picture yourself in the home three, six and nine months down the road. Do you think you will feel the same way about things then?