Tiny house, open eyes
5 THINGS TO CONSIDER BEFORE BUYING SMALL
Owning a home often comes with a lot of headaches and expenses, from high property taxes and steep heating and cooling bills to needed maintenance and repairs. But you can minimize those hassles — literally — simply by downsizing to a tiny home, provided you can sacrifice the living space.
According to TheTinyLife.com, the average tiny home is between 100 and 400 square feet (versus 2,576 square feet for the typical new home, per U.S. Census Bureau numbers). They feature minimal layouts that may include a compact bedroom, kitchenette, condensed bathroom, and possibly a small living room and not much more. But what they lack in size they make up for in affordability, flexibility and efficiency. And those are appealing attributes to many; consider that, based on a poll by the National Association of Home Builders, over half of Americans would consider residing in less than 600 square feet.
“Tiny homes are popular with buyers today for several reasons, including cost, mobility and more efficient living. Younger people who may not be able to afford bigger houses, especially in the major expensive cities, are pushing this trend,” says Oliver Somoza, CEO of Turnkey Property Pro in Philadelphia.
The average cost of a tiny home is around $30,000, TheTinyLife. com reports. Compare that to the median price of most homes for sale today, $279,000, based on Zillow data.
“We’ve seen that the market today is focusing more on a low carbon footprint, environmentally friendly features, and sustainability and attainability, which a tiny home can offer. Aging baby boomers as well as young couples without children have found this style of living to be advantageous in a challenging housing market,” says Jefre Outlaw, program coordinator for the Las Vegas-based National Hardware Show’s Small Build and Construction Technology Conference.
But tiny homes come with compromises and uncertainties. Before diving into this petite property pool, weigh these factors:
Consider the source
You can erect your own tiny home using designs available on the internet, purchase one already built or that can be crafted by a builder/ developer, or buy a resale tiny home from a seller. Tiny homes come either prefabricated, manufactured, modular or custom-built.
Mobile vs. fixed location
The majority of tiny homes are mounted to trailer beds and have wheels that permit them to travel like and be classified as RVs (having RV status can allow builders to sidestep municipal and international building codes). Tiny homes function as self-contained domiciles that can either be parked anywhere they’re allowed and removed from the utilities grid or located on a permanent foundation on a parcel of land that you buy.
Zoning rules
Depending on the laws of your chosen area, you may need special zoning permission from your chosen municipality. “Most cities won’t allow any dwellings under around 600 feet,” cautions John Frigo, a real estate investor and tiny home enthusiast. “For this reason, you may have to locate your tiny home on a relative’s land or rent residential space to park your tiny home on wheels.”
Power and utility options
Many tiny homes function as self-reliant units that use solar and/ or battery or generator power and a compostable toilet. Others require connection to the grid and hookup to public utilities like sewer and water. These options will need to be explored carefully based on where you choose to locate your tiny home. “Make sure that your tiny home provides hot water, a shower, air conditioning, heat and an indoor toilet,” Somoza suggests.
Insurance issues
It can be challenging to find an insurance provider willing to give you a homeowners insurance policy for a tiny home, so prepare to shop around.
Resale value
“It’s important to have an idea as to how much the home will depreciate once you buy it,” says Outlaw. “If you decide to sell your purchase, have a game plan in place to make sure you get the best return on your investment.”