Tiny houses have fascinated and captivated the nation for quite a while now. Many enjoy simply seeing the ingenuity and cuteness of the homes. However, many others start to feel the urge to take the leap and buy or build a tiny home. Once this threshold is breached there are several questions that usually come up.
In this article, we will answer the most common questions that we have been asked or regularly come upon regarding tiny houses.
How much does it cost to buy a tiny house?
This is one of the most frequently asked questions. It is obviously important to someone who is just starting to entertain the idea of buying or building a tiny house to understand if it is something in their price range. After all, if it isn’t in your price range why bother continuing to look into it, right?
Of course, it isn’t an easy thing to answer. For example, how would you answer how much a car costs? It depends on if you are talking about a used Volkswagon or a new Mercedes. Just as with cars, there are many models, features, and options to choose from, and all of these obviously affect the price of a tiny home.
However, the general price range to buy a tiny home is between $10,000 and $60,000 dollars.
How much does it cost to build a tiny house?
Like the previous question, this one does not have an exact answer. However, as a general rule, you can usually cut the buying price in half.
Therefore, a very basic tiny house that would cost you $15,000 to buy you should be able to build for between $7,000 and $8,000.
On the other end of the spectrum, a tiny house that would cost you $60,000 to buy should cost around $30,000 to build yourself.
Are tiny houses illegal?
This depends on two factors, namely where you live and what you want to do with your tiny house. Each state has slightly different laws regarding tiny houses. The understandable reason is that the construction isn’t as controllable as a traditional house.
You will need to check with your local laws regarding tiny homes.
However, don’t be discouraged. There are many legal loopholes to getting around most of these laws. For example, you may need to register your tiny home as an RV instead of an actual home.
Some tiny house dwellers move their tiny home between two or three cheap rental lots in order to avoid the laws that don’t permit permanent tiny home dwellings. There are many legal solutions, however, you first need to find out what your local laws are. In the case that they make it difficult search for solutions to that specific law, or move your location 🙂
Do you pay real estate taxes on tiny houses?
Yes, and no. Again the answer depends on your circumstances and location. You do not usually need to pay real estate taxes on your home. However, if you own the land that it is on you will obviously have to pay land taxes on that.
If you are registered as an RV you will usually have to pay a certain tax on that, however, it shouldn’t come anywhere near the price of real estate taxes on a house.
Will banks finance tiny houses?
Tiny houses are cheaper than a normal home, and harder for a bank to get their money back from in case you forfeit on the mortgage. They also don’t have a physical foundation, making them possible to steal.
Therefore, if you are looking for a traditional home loan, then your bank probably will not be able to help you. However, here again, we need to think outside of the box. After all, that is exactly what living in a tiny house is about, isn’t it?
The simple solution is a technical one, don’t go for a home loan, but a personal loan. If you have good credit you should be able to get a personal loan or a line of credit that will allow you to build your tiny home.
Are tiny houses worth it?
This is a very common question that really boils down to personal opinion. Tiny houses are worth it if you want a simpler, cheaper, freer lifestyle. Yes, they are generally cheap, simple, tiny (go figure), and they allow you to move around.
Many tiny house dwellers swear that they would never go back. However, there are many that complain about the tight living quarters, lack of personal space and the lack of storage.
The best way to find out is to experiment. As we have written previously there are places where you can rent a tiny home for a few days, weeks or months. This will give you an idea of how it suits you. Another good idea is to build your tiny house and spend weekends in it before actually getting rid of your permanent dwelling. This way you can get a feel for whether or not it is worth it for you personally before taking the leap.
In conclusion:
You surely noticed that the most common answer to these questions is: “it depends”. However, we hope that we have been able to give you an answer about what it depends on.
If you are serious about jumping into tiny house living we wish you the best and we hope that we have been able to inspire you!