Pros of living in a tiny home:
- Tiny homes are less expensive.
Tiny homes are much less expensive than traditional homes, starting at about $25,000. Of course, this does not account for the cost of land to place your tiny house, which would need to be leased or purchased as well.
- Tiny homes use less energy.
Tiny houses are generally about 100-400 square feet. Less space means less energy usage. Additionally, since only 1-2 people can live in a tiny house comfortably, this means modest water, sewer, and garbage waste. This will also bring your utility expenses down.
- Tiny homes can be mobile.
Since tiny homes are so small and are usually built with wheels, they are easily transportable. That means if you decide you want to move somewhere else, it’s relatively easy to move your house with you.
(Scroll down for cons of tiny homes...)
Cons of living in a tiny home:
- Zoning laws may restrict where you can place a tiny home.
Depending on your area, there are restrictions to where you can or can’t put a tiny home. Since most tiny houses are considered vehicles rather than residences, it can be tricky to find land to permanently place your tiny home.
- Tiny houses have little, if any, storage space.
Since tiny houses are so small there isn’t much storage space. If you’re not used to such a confined space, or are hoping to downsize, you’ll probably have to get rid of many of your belongings or rent a storage unit for them (which can be expensive).
- There’s no room for entertaining in your tiny house.
Again, since tiny homes have very little square footage, it’s difficult to have more than 1-2 people in one at the same time. This highly limits your ability to host any indoor gatherings or even host a small dinner.
- You can’t finance a tiny home with a mortgage if it’s mobile.
Traditional mortgage financing is not available for tiny homes that are movable because they are considered “recreational vehicles”. This means if you don’t have the cash to purchase one, you’ll likely need to take out a personal loan or an RV loan at a higher interest rate.
One way to own a tiny home without so many restrictions is to have it built on a foundation on land that you own or purchase. There is usually a minimum size requirement for homes built this way (depending on your area) but it may be the best option for those who desire a tiny home and aren’t concerned with mobility. Another upside to this option is that it could also make your tiny house eligible for a traditional home mortgage, or allow it to qualify as an ADU (additional dwelling unit) on your current property.
Still have more questions about tiny homes, or want to know your options for buying one? Contact us!