Contrary to what many people believe, the cost to live in a tiny house isn’t as minimal as you think.
In theory, all tiny homes are small, but that is about all they have in common. There are countless varieties you could choose from. All of which have different amenities, different levels of quality, and the cost to live in these tiny places can be as diverse as the home itself.
Most of these tiny dwellings measure less than 400 square feet and on wheels, these tiny places can be mobile, which means they have to be able to withstand travel, plus the average wear and tear on a home. Because of this, quality is going to be a huge factor when you are trying to figure out what home you want to buy. So naturally that is a cost you have to plan for. Here are some others:
Cost of mobility
One of the less thought of aspects when trying to figure out the cost to live in a tiny home is the cost of mobility. Tiny homes are great for saving on utilities, but when you decide where to settle, be it an RV park or on a private farm, you’re going to have to pay an associated fee. Plus, residents will have to take out additional insurance if they want to go anywhere with their home. Cargo trailer insurance is ideal for the homes that are built on a trailer, but those that are certified as an RV must have RV insurance. Oh, and you have to pay for tax, tags, title, and a license.
Utilities at a minimum
It doesn’t matter how what kind of home you live in, the water and energy bills will add up. However, if your home is built well, it’ll be more energy efficient, thus helping to keep the cost to live in one relatively low. Of course, if you are interested in going off the grid, it’ll be very cost efficient since the economy of scale to live in such a tiny dwelling is a sure guarantee to save you money.
Small furniture still costs money
Tiny homes require a lot less furniture and other things to accessorize your home. However, when you are buying furniture and accessories to fit in your tiny home, it will still cost money. A regular sized couch or bed will not fit in a tiny home. You will also want to choose items with dual purposes because you will have such limited space to store these items.
The way of the mini mortgage
Not everyone has the resources available to pay for their miniature home in one go. Sure the intention of moving into one of these tiny abodes is to live a debt free life, but many will take out an unsecured personal loan or an RV loan. Why can’t they take out a mortgage? Because most mortgage lenders will require that a home has a foundation and the loan must meet a minimum loan amount.