For most people, the allure of tiny home living is the fact that it means living without having a mortgage. However, not all tiny homes are alike and some come with a hefty price tag.
As with any kind of custom home build, tiny homes come with a variety of styles, amenities, and levels of quality. In fact, if you plan to purchase a mobile tiny home, the latter should be your number one concern.
Many folks who are shopping for a tiny home believe that a small home automatically equals a small price tag. However, most tiny home builders recommend that you plan to spend at up $60,000 for your compact abode.
While that budget may seem excessive for such a small space, there are many considerations when customizing your tiny home and each of them can add up.
Making It Mobile
The average size of a mobile tiny home is 400 square feet. This means that utility bills can be much lower. However, there are additional fees and expenses that must be taken into consideration.
For instance, if you plan to park your tiny home on land that you do not own, there will likely be a space rent that you must pay monthly.
Also, if you plan to move your tiny home from one place to another, you will need to invest in insurance. For those tiny homes that are built on trailers, you will need cargo trailer insurance. If your home is certified as an RV, you must invest in RV insurance.
Also, there are fees for tax, title, and license when you register your home as it is considered a vehicle.
Utility Bills
Regardless of the size of your tiny home, you will need to pay for the energy and water that you use.
As you are navigating the building and customization process of your tiny home, it is important to be thinking about energy efficiency.
Parking your tiny home in an RV park means that you will need to pay the utility usage rates for that specific park.
Furnishings
While furnishing a tiny home will cost nowhere near the same as furnishing a single family home, you will need to consider the extra cost of purchasing special storage devices, smaller couches or chairs, and even beds that are appropriate for the space available.
It is possible that not all of the furnishings that you currently own will fit into your tiny home and you will need to buy all new items.
Mini Mortgages
Not everyone who is shopping for a tiny home is financially capable of dropping $60,000 all at once.
For those folks, there are some financing options though not the traditional home loan. Most lenders require that your home has a foundation in order to qualify for a mortgage loan.
For people who are purchasing a mobile tiny home and need financing, an RV loan or even an unsecured personal loan are the only options.
While tiny home living and mobile tiny homes can create some tremendous freedom, they do not come without challenges and considerations.
If you are planning to purchase a tiny home, make sure to include some of these considerations into your budget and have your financing in place so that you know exactly how much you can spend.
This will help the process of customizing your tiny home so you get what you want and what you can afford. There’s no sense in living tiny if it’s going to add to your debt and stress.