Many folks dream of making the transition from rental properties to a home of their own. Unfortunately, an alarming majority of potential buyers tend to hyper-focus on the somewhat prohibitive hidden costs wrapped-up in owning a home. The ever-present mortgage payments make up for only a fraction of the costs you’ll face altogether. Moving expenses, closing costs, down payments, taxes, fees, and lender costs are some of the charges you’ll have to cover upfront. Beyond that, homeowners will also have to account for HVAC costs, HOA fees, electrical fees, and any maintenance and repair totals in their monthly budgets.
The daunting financial burdens associated with homeownership leaves those living paycheck to paycheck to make do with the short end of the stick. Sure, you can build your savings and eventually qualify for the loan, but can you pay it back?
Formerly sought-after large homes are simply unattainable for many aspiring homeowners nowadays. Don’t let a bigger-is-better mentality blind you from the hidden costs of homeownership. With the sheer expenses of purchasing property and broader social trends— shrinking family sizes and a greater emphasis on environmental conservation—in mind, it’s no surprise that many have hopped aboard the tiny house bandwagon.
Slowly but surely, homeowners have discovered that shopping for small house plans saves tremendous amounts of money in the long run. Not to mention, these modern takes on homeownership have allowed nomads-in-training to achieve a minimalist and more sustainable lifestyle.
If these minimalist spaces are conducive to your current lifestyle and manageable space-wise, making the switch may be worth considering. That way, you can lighten the financial burdens that come with owning a larger home.
1. No Monthly Mortgage Payment
The monthly mortgage payment can be the final financial straw for families residing in homes they can’t afford. As mentioned previously, you might be able to qualify for the loan on that mansion in your dream neighborhood, but what if you have a medical emergency in the family? Maybe your spouse loses their job? Should the unthinkable happen, will you be able to keep up that mortgage payment (or a higher monthly payment) for 30+ years? In the case of a tiny house, you may have to initially take out loans, but these costs incurred won’t be nearly as high as the mortgage payments and interest rates on a $300,000+ home.
2. Less Maintenance Over Time
Less space to dust bust translates to fewer hours spent cleaning and tending to occasional mishaps. While you’ll still have to perform maintenance on your tiny home throughout the years, if you play an active role in your tiny home building process, you’ll gain a deeper understanding of how your house operates. In turn, you may be able to save money by tackling some repairs yourself. For the repairs you do have to outsource, you’ll find they cost much less than repairs in standard homes.
3. Lower Utility Cost
Though there are countless ways you can save on utilities, there’s no better way to cut costs than merely reducing your day-to-day water and electricity usage. Many tiny houses don’t require natural gas or propane for heating and cooking. Additionally, tiny home builders often harness the power of natural light by installing large windows. That way, you can soak your living spaces in sunlight instead of relying on artificial light.
On average, tiny house owners spend $10-$35 a month on utilities, which is a significant drop for homeowners and most renters who’ve grown accustomed to forking over hundreds of dollars per month. With these cost-savings in mind, your case to move into a tiny home strengthens.
4. Less is More
One of the greatest perks of downsizing for many tiny homeowners is being able to rid yourself of clutter-inducing trinkets and keepsakes. Many humans pack their living spaces with useless knick knacks that monopolize limited storage space.
Avoid falling prey to maximalist culture by relocating to a tiny home. That way, you’ll have no other choice but to declutter your spaces and rehome your belongings by making donations or investing in a storage unit.
For those homeowners looking to supplement their income, consider a garage sale, which can add some much-needed cash to your wallet right before the move. Or better yet, tuck your earnings away in your savings.
5. Purchasing Land Isn’t Necessary
Choosing to build a tiny home will eliminate the need to buy a large plot of land, which can become a very pricy venture in the blink of an eye. Many tiny-house hopefuls will build on land already owned by families and friends, costing little to nothing per-month.
Other folks will build their tiny home on a trailer, which can be a large initial investment but eventually allows you to enjoy the perks of a nomadic lifestyle. Additionally, not having land to maintain will save you landscaping and lawn care costs down the road, translating to more money in your pockets.
6. Live a Greener Lifestyle
Generally speaking, builders design tiny homes with energy savings and waste reduction in mind. Many tiny home communities around the United States have gained a reputation for producing more energy than they consume, making this living arrangement a dream come true for those aspiring to be more environmentally conscious. Additionally, many tiny home communities make sustainable practices a priority and try to maintain a greener way of life that naturally melds well with the way tiny homes function.
Avoid living in a haven of wasted space and environmentally-destructive excess by opting for a tiny home. In virtually no time at all, tiny-house homeowners will notice a sizable decrease in monthly bills and a spike in energy efficiency.