A Guide to Tiny Homes
Tiny homes have become increasingly popular in recent years due to their cost-effectiveness and flexibility. They are typically around 400 square feet or smaller, while the average home is over 2000 square feet. They can be mobile; many people opt to travel around with their tiny home on a trailer for more flexibility. You can also purchase a plot of land for your tiny home and remain stationary if you wish. Before investing in this venture, it is a good idea to do plenty of research on your options and have a plan for your approach. For the right family or individual, a tiny home could be an exciting option.
Are Tiny Homes Actually Cost-Effective?
On average, tiny homes are much less expensive. Of course, this has a lot to do with the specifications of your home such as square footage and special amenities. Generally, tiny homes cost around $30,000 on the low side and can go up to $100,000 or more. You have to consider the cost of land since you will need a place to keep your home; that is if you don’t have a plot already. Be sure to educate yourself on the laws of an area when deciding where to build your tiny home since some areas require you to pay property taxes if your tiny home is on a foundation. For tiny homes that are mobile, you will not need to pay property taxes since they do not have a permanent location. However, this does not mean you will save a ton of money. You still need to consider the cost of parking due to your local zoning laws. Also, while you don’t need to pay property tax, you may have to pay real estate tax depending on what the law in that area says in regard to your mobile tiny home.
How Do I Find One?
There are many ways to go about obtaining a move-in ready tiny home; you can even find DIY kits on Amazon if you are handy. However, if you aren’t familiar with the aspects of building a home, it is not a good idea to attempt things like electrical work or plumbing on your own. You can use any money you save from investing in a tiny home to hire subcontractors. Just make sure that you follow all zoning laws and adhere to building codes in your area. Every home has to align with certain rules to be inhabitable. You can also purchase your tiny home fully built or even design your own construction plan for contractors that fits your specific needs.
Tiny home financing isn’t quite as straightforward as a typical home buying situation. Lenders want borrowers to have homes that are on a foundation that is permanent in order to be approved for a mortgage loan. This means that mobile tiny homes don’t qualify. The majority of tiny homeowners opt to save up enough cash to pay off their home in full, in which case you could make the payment in one lump sum via credit card, debit card, check, etc. This option is much more attainable with tiny homes due to their low costs. Another great option for many people, particularly those with above average credit, is a personal loan from their bank. While personal loans generally need to be paid back a bit faster than a mortgage, decent credit will win you a low interest rate over the term of your loan. If you wish to obtain a mortgage loan, and don’t mind staying in one place, it would be a good idea to place your home on a foundation. This is a good option if you don’t want to or are unable to pay the money upfront, and you will generally have a longer period of time to pay back your mortgage loan than a personal or installment loan. Tiny homes are a great option for families who don’t mind less space and who are looking for a living situation that is both cost-effective and flexible. Perhaps you wish to travel long distances with your home and don’t want to be bound to one location for too long; maybe you just want to scale down. If you’re considering a tiny home, be sure to do plenty of research and educate yourself on the zoning laws in your area.