Tiny Homes are a Big Deal
What are Tiny Homes?
Tiny Homes are exactly what they sound like: small, custom homes that may be built on wheels. They’re becoming increasingly trendy, mainly for singles and young couples as a method of downsizing and reducing living costs. Buying a regular size house or apartment is too expensive, and renting provides little to no future benefit.
Although this lifestyle doesn’t suit everyone's needs, it could potentially be the solution to some of your real-estate concerns in the current market. After all, Tiny Homes are a Big Deal.
Why should I choose a Tiny Home?
They’re customizable: As the trend continues to rise in popularity, many Tiny Home “design + build” startup companies are seeing massive success. These hyper-customizable houses can be contoured to fit your every need, while looking exactly how you’d like. Having design freedom like this is typically very expensive in a regular size, cookie cutter home built by a developer.
They’re relatively inexpensive: Although they’re built in many shapes and sizes, most fall between $40,000 - $80,000 to build. Compared to the average price of a house in Canada, ($816,720) a tiny home is a very inexpensive alternative. Many use Tiny Homes as a way to circumvent inflated markets & live in areas that are out of their budget.
Tiny Homes also generally require less maintenance than a full-sized home, which makes them inexpensive and less complex in that regard as well. Since most are custom built, you likely aren’t paying for any features that you don’t need.
Tiny Homes often come on wheels, making it easier to move location if you wish. If your Tiny Home is built with this feature, selling your property without selling your home is a viable option when the time comes for a change of scenery.
Why wouldn’t I choose a Tiny Home?
They’re… Tiny: As the name suggests, these homes are pretty small, typically being around 250 square feet. If you’re a person, couple or larger family who needs space and personal privacy, this may not be the right fit for you.
They also have limited storage space, meaning you’d likely either have to keep fewer possessions, or pay a fee to have them stored elsewhere.
They aren’t profitable: Although the construction or purchase of a Tiny Home is significantly less expensive than that of a full-sized home, the resale market is nowhere near as successful. Most people looking into this market choose to build their own custom home, rather than buying one second hand. This poses challenges for those looking to upscale, or those with a growing family. It may leave you slow-moving sale process, so planning is necessary if selling is your intention down the road.
Mortgaging can be a challenge: Many major financial institutions have a minimum limit you’re allowed to borrow when taking on a mortgage. Some tiny homes may fall into the lower end of this range, many though falling short. This is something you should research and consider when buying, as you may need to have the cost up-front. Buying a tiny home is a big deal so it's important to have the financing in order.
Ultimately, the choice is yours!
Buying a Tiny Home is a trendy way to downsize and cut buying costs. If you’re a single or young couple looking for either of these upsides, this may be something to consider. But do be cautious as the resale market can be challenging to navigate as a seller.