The benefits of owning a tiny home are pronounced, from having a space perfectly designed for you to reducing your carbon footprint. What many people don’t consider before embarking on their journey towards procuring their own tiny home is the ongoing costs associated with the home. In other words, there is a certain amount of intrinsic costs associated with the tiny home that can’t be overlooked.
Obviously, tiny homes are going to be cheaper than the average 2 bedroom home in any big town or city. It’s easy to make the mistake of thinking your tiny home will have a negligible amount of upkeep costs, however; there are a few key financial constraints to consider, ranging from tiny home parking costs to maintenance.
Purchasing Costs and Credit
When it comes to the cost of building or purchasing your first miniaturized home, the world really is your oyster. You can spend as little or as much as you like, depending on your requirements. One benefit of a tiny home is, as you’ll see, there are certain costs that can be dropped entirely. Expensive city tax for services, for example, or garbage collection. This could allow you to put money aside for improvements, or raise capital through credit to buy your home outright—you’ll save money that can be put towards payments. On the flipside, the flow of new cash you might find yourself in needs to be managed—brush up on your crucial financial literacy skills.
Utilities—Gas and Electricity
A conventional home will have water, gas and electricity hooked up. From there, you have your nominated provider and tariff—and that’s all there is to it. With a tiny home, this could be the case if there’s existing infrastructure. Be mindful, however, of the costs of gas and electricity if you need to bring in your own supply through gas canisters and the like (that you may usually see on trailer parks). In this case, it pays to be prudent and make sure that you keep a close eye on your usage. Costs aside, you might run out at an inopportune time.
Keeping Up the Maintenance
Your tiny home will need maintaining just like any other. This is an area where you can make significant savings. Given the lesser height and size of a house, it is entirely possible to maintain it yourself using shop supplies and a toolkit. With a little bit of knowhow and the best tools for the job, it can be a breeze. Just make sure you know what you’re doing—a surefire way to lose money on DIY is to go in with the incorrect knowledge.
Tiny homes are a great way for people to meet their individual housing needs. In an expensive, congested and competitive housing market, it might seem like the only way. There are pros and cons, cost-wise, to the tiny home dream—just be aware of what your limitations are.