Tiny homes — little lodgings consisting of 400 sq. ft. or less — are all the rage – make sure you learn What You Need to Know Before Buying a Tiny House for Your Family.
Why?
They’re a fabulous alternative to those of us who can’t afford traditional housing, which is just about everyone these days.
However convenient such investments can be, they don’t come free from headaches and financial risks.
Here’s what you need to know before buying a tiny home for your family.
Photo by Clay Banks on Unsplash
Table of Contents
How You Will Pay for It
If you have a bit of cash stashed away, you might be able to finance your tiny home by paying for it outright.
For example, some people have transformed sheds from big-box retailers into living spaces.
If your parents have some acreage or at least a lawn large enough for an outbuilding, you could be in business for under $20,000 if you’re handy — especially if you know how to plumb and run electricity.
You probably won’t be able to get a traditional mortgage.
However, you have other options for financing, such as land and construction loans.
An option is to investigate financing directly from the tiny home manufacturer.
Also available is RV financing if you decide to go with the tiny home on wheels (THOW) route, particularly if you go through a certified builder specializing in THOWs.
If you already own a home and are putting in a guest suite for Airbnb purposes or grandparents, you could get a home equity loan or line of credit to finance the operation.
You can even use credit cards, although most financial advisors suggest that you don’t.
The high interest rate means you could pay thousands more for your lodging in the end.
Whether You Want Fixed or Mobile
As mentioned above, you have two choices of tiny homes.
One is a fixture that you place on a permanent foundation.
The bugbear with this option is that you have to have the land on which to build.
Finding land isn’t always easy.
The cost in many areas has couples looking off the grid.
You can find such listings on Craigslist and Facebook Marketplace, but you have to be careful.
Do your due diligence with the state by performing a title record search to ensure the parcel you select comes free of encumbrances.
You may also need to pay for a survey to prevent future disputes over where your borders fall.
Building off-grid presents its own set of problems — particularly how you will get power and water.
You may be able to collect sufficient rainwater in some climates, but folks in places like the desert southwest may have to pay a considerable sum to dig a well.
Power is a bit easier, although you’ll still need a considerable outlay for energy storage if you don’t connect to the traditional grid.
What Appliances You Need
If you dreamed of happy Thanksgivings with the family gathered in the farmhouse kitchen, it’s time to reconsider that idea.
Tiny home living doesn’t leave you much space for appliances — you might have trouble finding counter space for that instant pot you got for the holidays.
Laundry is another issue when you have a family.
Some tiny homes do include small facilities, and doing so might be a must if you have littles who spit up and spill all the time.
Can you get used to air-drying your clothes?
If your tiny home is in a backyard with HOA rules prohibiting clotheslines, you can find shorter drying racks that don’t raise eyebrows — or fines.
Design your kitchen for your needs.
If you can’t live without a combination instant pot and air fryer, include that device in your design.
Please don’t assume you’ll find room later — you probably won’t.
However, if you don’t bake, you might not need a full oven — use that space for extra cabinets.
Where You Can Store All Your Gear
You’ll also need space inside for those things you use every day and a place for larger items.
For example, if your family rides electric bikes to cut their carbon footprint, where will you secure these?
If you have land, a separate lockable storage shed could do the trick.
Those who land-share can ask for a bit of garage space if it’s available, and THOW folks can include a secure rack for transit.
If you have other items that don’t fit, you might have to get creative.
You can rent a storage facility for anywhere from $60 to $225 a month.
Run some numbers — you might be able to justify the expense with what you save on rent.
Where Your Kids Will Go to School
If you build on a fixed site, your children will attend whatever school those in traditional homes attend.
However, what do you do if you have a THOW and travel with your clan?
In such cases, online schools are your best bet.
Nearly every state has online public schools where you can enroll for free.
You want to enroll in the state you consider your home base — where you receive your mail.
If you have more money, you can investigate private online schools.
Things to Know Before Buying a Tiny House
Buying a tiny house is a smart financial move for many families fed up with ever-rising rents but need a roof over their heads.
Know these five things What You Need to Know Before Buying a Tiny House for Your Family before you invest.
