Is a Tiny Home Really a Tiny Expense?

Puppies. Babies. Tiny homes. Small things are adorable. This is especially true when they’re seen from a distance where you don’t have to deal with the chewing, crying, and downsizing.

But the question remains: Is a tiny home really a tiny expense?

At first glance, their small and movable footprint screams environmentally friendly. The natural consequence of less space is less cleaning. They encourage (or force) you to scale back to the bare necessities. When your home isn’t fixed to a plot of land, you can pick up and move on a whim, embracing the carefree, “wanderlust” spirit so many want these days. And, you can do so for substantially less than buying a traditional home. Or can you?

The answer’s not completely clear.

Yes, the cost of building even an extremely polished tiny home is less than most traditional single-family residences. When you’re not paying for land and you’re reducing the square footage, your cost drops substantially. But try this on for size. Tiny Heirloom, the Portland based tiny homebuilder, sold a luxury tiny home on wheels in 2016 for $150,000!

The glammed out abode came with highly prized features such as marble countertops, a deep sink, and a full-size fridge. Somehow, the 200-square-foot abode even fit a chandelier and claw foot tub.

But with such a steep price tag, is this tiny home an investment? Most likely not. Land traditionally appreciates in value. The home on the land doesn’t. Like a car or RV, the older it gets, the less your tiny home will typically be worth.

Sure, when you buy a traditional home you often get saddled with a mortgage payment. You also get a permanent address, a school district for your kids, and the opportunity to build equity with your monthly living expenses.

Ready to start building equity? Contact us today, we’d be happy to connect.