Hello! How’s it going in your part of the World? Mine is good. This week seems to be flying by. I feel like I haven’t had a chance to sit down and relax or breath all week. Anyways, I came across another article from Forbes magazine that pretty much states that tiny houses are a bad investment, which of course, I’m going to talk about today….
You can read the full article here. Or here’s my recap: It’s titled: “5 reasons buying a tiny house is a mistake”. 1. It’s a fad. Which may be true but more and more folks are buying, building, and living in them each day. Especially with all this crazy weather we’ve been having I think it makes sense for people to think of them as a temporary housing situation for those who lost everything…just throwing that out there. 2. Buyers are few…for real estate professionals, yes, there simply are not as many tiny house buyers BUT if your into tiny houses there seems to be quite a few and most have them built because they are specific to lifestyle. 3. It’s less marketable (as compared to a traditional house). The idea in this point is that tiny houses are designed for 1-2 occupants and wouldn’t allow for those to have guests. My caveat to this is that if you design it to accommodate more than 1-2 people then yes, you can have guests. I can fit a mattress in the loft above my kitchen and have someone sleep there. Would that be ideal, no but I didn’t design it for that as I rarely have guests. I also know (not personally but online) of several people who have families with 2 – 3 kids living in tiny houses. Again, I don’t think this is ideal but they are making it work. So I think if you want something to happen or be a certain way, you can do it. 4. It’s too small – well, some tiny houses are super small but if designed correctly then it serves all your needs and meets your lifestyle then who’s to say something is “too small”. From a real estate side, I could see how someone might think that in that if they sell something bigger, they get a bigger commission. Again, it all just depends on what you want. 5. It’s not less expensive. Sometimes but sometimes not. I could not purchase a traditional house for the price of my tiny house. Ok, I COULD but I would be putting a lot of $$$ into renovations! I do know some folks purchase tiny houses for the same amount as a traditional house ($70,000 – $100,000) but it also might depend on location. That might be really affordable someplace in California where the typical house goes for $500,000.
Anyways, my point is that there is a lot of conflict about tiny houses and if it’s what you want then go for it. I think it takes some serious thinking and considering options prior to making the leap. I also don’t think all people plan to sell or are using tiny houses asan investment. I have other plans for mine besides selling. It’s not my forever home (or maybe it is) but I do plan to have it for awhile and use it as my vacation home after it’s paid off. I went into this knowing that I wouldn’t be selling it or have to worry about selling it so maybe I have a different opinion than others. So for me, I didn’t go into it as an investment but rather as a way to save money instead.
What do you think of this article?