“Are tiny homes worth it?” is a question I’m often asked. You know, someone gets mad at their homeowner’s association, or just frustrated with the hassles of maintaining a home, or just the business of life for that matter. But there’s a lot to consider here.

Questions like “Will the local government PERMIT a tiny home?” and “Will I even LIKE living in a tiny home?”, are real questions that need to be considered. So today, I’ll be taking just a few minutes to address these questions about tiny homes, and breathe some rational thought into it by looking at a few pros and cons.

What IS a tiny home?

Before we can determine if a tiny home is worth it for you, let’s first, let’s identify what a tiny home IS for our purposes today. We’ll define a tiny home as a mobile dwelling with approximately 100 to 450 square feet. They’re popular because of their affordability, simplicity and small environmental footprint.

A tiny home could be just a shed that’s dressed up a bit with electricity, water, bath, kitchen, and maybe heat and air conditioning and you’re good to go. There are all sorts of customization options for tiny homes, and they can be VERY nice.

How much does a tiny home cost?

They’re generally inexpensive, with the cost of these homes starting at $8,000 to $10,000 up to $50,000 or $60,000. Of course, you could spend as much as you want, I guess, but that may be defeating that affordability benefit I spoke of a minute ago. Most of the tiny home sales in the US have been to those looking to invest as an accessory dwelling unit or to rent them out. Of course, you could put your adult child or grandma out there, or even rent it out if permitted by the local government.

Will my local government permit a tiny home?

So let’s address one of the greatest concerns I’ve seen with tiny homes, and that is whether the local government will even allow a tiny home. I can only speak to where I live here in Central Florida, but as a whole, County governments, and even some states, are generally NOT friendly towards their use, and getting permission past the zoning department is often tricky.

Tiny homes could potentially be utilized as an accessory dwelling unit, but you’ll need someone with a conventional home, and you’ll need to be in agreement that they’re okay with your tiny home being placed on their land.

If you want to place a tiny home on a piece of land here in Central Florida, some calls, or a trip to the county courthouse should be one of your first steps to determine if tiny home living is an option for you. Manufactured homes are treated as somewhat “less” than conventionally built homes, but tiny homes appear to be thought of as being lowlier still in my opinion.

Although tiny homes are often desired for their privacy, there have been several communities, sometimes RV parks that encourage tiny homes, including right here in Orlando.

Will I actually like living in a tiny home?

The idea of a tiny home is a romantic one. You know, no more spending every weekend on the yard and repainting the home. I can spend more time on the things I WANT to do, and less time on things I HAVE to do. Although tiny homes are affordable when compared to traditional housing, if you drop even $25,000 on a tiny home, you’d better be sure you’ll like it. $25,000 is still a lot of money to most of us.

Being priced more affordably, cash purchases are more common than with traditional homes. Obtaining financing for a tiny home is not as desirable as it is for financing on a traditional home. A personal loan or RV financing may be necessary, but these types of loans often require higher interest rates and large down payments IF they’re even available to you based on your financial situation. This is an often-overlooked cost of tiny home living, especially if you aren’t certain that you’ll enjoy it.

Tiny means TINY

An average tiny house is just about 225 square feet, while the average conventional home is well over 2,000 square feet. For reference, a typical bedroom is around 100 square feet. So there goes almost 50% of your total living space. There’s like ZERO space in these things. Little things, like where to put photos of loved ones, that favorite trinket, those extra boots or the raincoat or even where to put the coffee pot are serious considerations that need to be considered to determine if a tiny home is worth it for you.

If you’re a true, hardcore, minimalist, then maybe it’s for you, but most of us like our “stuff”. A year or so ago I helped a couple sell a large parcel of land and they lived in their RV for over a year, and let me tell you, they were over it! They thought it would be cool, but to them, it grew old REAL quickly and they couldn’t wait to get back to a regular home.

There is ONE more huge issue to deal with that I’ll come to next, but if you’ve got real estate needs anywhere at all, send me a message or just pick up the phone and give us a call.

What if it isn’t worth it for me?

If it turns out that you don’t like tiny home living, you could be in a financial bind as the resale value of tiny homes is not as good as that of typical real estate. The resale value is more similar to that of an RV, which is not good. Spending that kind of dough, just to determine it’s not for you, and then realizing that real estate prices have skyrocketed while you spent your time cramped in a tiny home could be heartbreaking.

What if it IS worth it for me?

Now, I don’t want to sound like it’s all bad, because it’s not. It could be a life changing purchase. If it IS for you, and you ARE able to enjoy an extended period of time in a tiny home, then it could be a financial windfall for you. Taxes, insurance, and maintenance expenses are real, but these could be significantly lower in tiny homes. Having more time for spend living your life and less time working ON your life is a dream for many, including me.

So, if you’re certain you can make a go of it, then rock on! A tiny home could be just what you need to spend more of your time living your life and less of your time working on your life.

Published on August 26. 2024 / no comments.