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Live Big in a Tiny Home A guide to the cost advantages of tiny home living. By Margarie Taylor
T
he tiny house movement encompasses people from all walks of life: recent graduates saddled with student loan debt, retired couples who are looking to downsize, environmentally conscious individuals looking to leave a smaller carbon footprint, and those who would rather spend their money on life experiences than a mortgage payment. These are some of the cost advantages of tiny home living.
Financial Benefits
The cost savings can be one of the most appealing aspects of living in a tiny house. Fewer building materials, lower tax rates and improved energy consumption are some of the ways you will spend less with this lifestyle.
Materials and Labor
Building a tiny home requires fewer materials and less labor than a traditional home. You can benefit from this price reduction in one of two ways: enjoy the savings or opt for
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Central Florida Lifestyle | September 2020
high-end finishes you couldn’t afford in a traditional home. It’s possible to save money by building it yourself if you have the time and knowledge to do so. The small size is often deceiving – tiny homes can take a long time to build, especially if you lack experience. However, tiny home building kits are available if you’re ready to take on the challenge.
Interest Payments
You can save thousands of dollars in interest by avoiding a traditional mortgage. Since tiny homes are relatively inexpensive, you can save up and pay cash. On the other hand, you could opt for a small loan, but some banks are hesitant to grant loans for tiny houses. They’re sometimes seen as risky investments because they don’t have great resale rates.
Taxes
Tax rates vary according to location. If you live in a state that collects personal property taxes, you’ll have to pay them annually on your tiny home, but they should be significantly less than the taxes on a traditional home. If it’s kept on a trailer on private land that you own, you might not have to pay any property taxes at all. Address any concerns and questions with a tax professional.
Energy Consumption
The reduced square footage in a tiny home, combined with the fact that they are fairly easy to move, makes them cheap to heat and cool. All you have to do is park it in the shade during the summertime and move it to an open area when the weather becomes cooler. Since appliances are relatively small in tiny homes, they don’t require much energy to power, which produces further savings. To save even more money, many tiny home owners opt for solar panels on their home, which reduces and sometimes eliminates the need for electrical power. While the panels are costly to install, they have the ability to save you a fortune further down the road.
Repair Costs
It’s much cheaper to repair a tiny home than a traditional home. For example, the cost to replace the flooring in a 350-square-foot home is significantly less than the cost of a floor replacement in a 2,500-square-foot home. While the decision to move into a tiny home isn’t one that should be taken lightly. It’s a choice that can both simplify and completely change your life in ways you never could’ve imagined.
Source: tinyhousebuild.com/tiny-houses-infographic
