Tiny Houses: Are they worth investing in as a first home?
In the age of smashed avo on toast, eco-friendly living and a general vibe among Millenials of wanting freedom in work, life and surroundings (thanks, pandemic), the tiny house revolution is a comin'!
You might have seen the Scandi-minimalist / bohemian-chic imagery of these teeny homes online. Or watched the many sea-change-inspired property shows with couples 'packing it all in' moving out of cities for a rural, nomadic life on a shoestring. But is it a viable investment decision, with a promise of an idyllic lifestyle? Perhaps, but be warned, not all tiny homes are built equal.
Tiny homes at a glance
A worldwide movement and coveted by Millenials as a lifestyle dream, the uptake in Australia for tiny homes is still relatively small.
But they are a great option for downsizers, people after simpler, slower lifestyles, reducing carbon footprint, and living a more sustainable, minimalist life. Because it's a relatively new property trend, if you want a tiny home, you'll need to commission the build yourself, meaning you'll be able to customise its' design rather than taking on an established home. All you need is the land to put it on and a little bit of cash!
Why are tiny homes a great idea?
They are cheap! Depending on your specs and architect, an average tiny home will set you back on average $5k per square metre. A much more affordable first home option if you're struggling to save a deposit or fend off competition elsewhere.
Movability. You can move most tiny homes from one place to another. Hello, flexibility and freedom!
You can make it yours. Go directly to an architect and have them design your house JUST the way you like and need it. Or, did you know you can buy DIY tiny homes on Amazon or eBay and build them yourself? (hmmm..)
Low environmental impact: From utilities to land space, it's the most environmentally-friendly housing option and made for off-grid living (with the right set-up).
Why might a tiny home be a bad idea?
Expensive to move. If you want the flexibility of moving the home with you to the next destination, be prepared for transport costs which can be worth almost more than the actual house.
Can be too cosy. If you're planning a family, this isn't a long-term housing solution, even though some lifestyle websites may tell you otherwise.
You need to cull. Tiny homes are…ahem, tiny, so if you're longing for larger living spaces or have many 'things' and don't fancy a Marie Kondo style overhaul, a tiny home might drive you mad.
Legal issues. Not all tiny homes are legal. It depends on the council or shire you're planning on living in and what they consider a permanent dwelling. FWIW, a home on wheels is not considered a permanent dwelling. It's vital you understand these legalities and regulations before you make any decisions, along with the planning permits you'll need to commence building.
No appreciation (not that kind!). Tiny homes tend to depreciate over time as appreciation on property is mostly due to its' location and the property land size. So going with a tiny house is more for the here and now rather than future-proofing your asset portfolio.
Thinking a tiny home might be the answer to your property questions? Our advice (as always) is to do your research and due diligence, get in touch with your financial advisor and scope out architects to see whether it's a viable option for you. Oh, and you need to have the land sorted first (very important)!
Thanks for reading.
Tabitha
Scandi pine dreams. The Pod, Lewisham, Tasmania.