Editor’s Note: This is a guest post.
Today, a standard home in the U.S. costs around $200,000. No wonder the idea of ditching the mortgage and downsizing is becoming appealing to more and more people. The tiny house movement has sparked a global trend in simplified living. You might be asking yourself, is this worth the money? Let’s take a look at why living tiny might be worth your investment.
The Price Tag
If you compare the price of a tiny home to that of a standard home, you might be making some big savings. The average cost to build your own home ranges between $25,000 and $30,000 in materials. Sure you could do it cheaper, but in this case, quality is usually better. If you’re looking to buy new, the average price of a tiny house can be anywhere from $50,000 to $100,000.
Paying rent for a property can be frustrating because, in the end, there’s no investment. A mortgage can be equally as frustrating and out of the question for some individuals. This is where many people find that purchasing their own tiny home is the better investment.
Another financial aspect to consider when choosing to live tiny is where to put your tiny house. One option is to build on the property of a family member or friend. It’s also possible to avoid expensive land costs by renting a plot of land within a tiny home community. Another option is to stick to RV parks where you pay a minimal camping fee. Keep in mind that some municipalities may have issues with long-term campsite living. It’s always a good idea to check the local laws and regulations first!
Earn Money With Your Tiny Home
While standard rental homes can be challenging to manage, a tiny home doesn’t need to be. Airbnb, in particular, is a rental site that supports unique and beautiful homes. Another option is to buy a tiny house to flip. In this case, your initial investment and risk are lower than a residential property. You can either buy an older tiny house to spruce up, or a tiny home shell to design from scratch. Either way, owning a tiny home opens up the possibility of some potential profit!
An Investment In Living
When choosing to live tiny, you’re also investing in the kind of life you want to lead. One of the major reasons people choose the tiny lifestyle is because of the freedom it brings. Living with less “stuff” means you can focus on the things in life that are most important to you. Living on wheels means you can wake up to a new view every day!
The decision to invest in a tiny house has many upsides. For starters; the lower price tag, the potential for profit, and the focus on quality. Despite these benefits, not everyone is ready to go tiny. If you can’t live without your walk-in closet, you might want to reconsider. It’s always a good idea to ask the right questions and do some research before taking the leap! Determining if a tiny house is a good investment comes down to how compatible it is with your lifestyle.
A US citizen living in South Africa, Molli is a lover of travel, surfing, and tiny houses. One day she hopes to live in a tiny house—not just write about them.