While we don't advocate a one-size-fits-all solution to homes, it is refreshing to spend a weekend talking to a group of people who think less is more when it comes to housing. Around 100 folks, all considering building or buying a tiny house, came to this year's Tiny House Conference in Charlotte, NC. Their collective curiosity, open-mindedness and sense of adventure made speaking with them a pleasure.
Our topics this year: Off-grid living and Tiny House Budget & Finance. I'll save the off-grid discussion for a future post.
We had given the money talk before, but found updating prices of houses currently for sale or recently completed especially interesting. The average price tag for a home in the U.S. is $207,000 and the average price in the D.C. Metro area, where we live, is a whopping $548,000. Compare that to the price tag for most tiny houses (under 500 square feet): $20,000-$80,000.
It's not a fair comparison without taking into account that traditional houses come with the land they sit on, and tiny houses on wheels don't. We surveyed a group of tiny house dwellers to ask about their home sites; some had bought land, but the majority were renting or bartering for their spot. This adds anywhere from $0 to $800 a month.
One of the joys of tiny living is having a living space that's a custom fit—with just what you need and nothing more or less. But when it comes to value, buying someone else's dream house can save money. One example: a resale currently located in Chapel Hill, NC, for $21,500. If you don't have to move the THOW too far and you have a place to park it, it's hard to beat the price.
A few interesting discussions came up regarding the build or buy decision. One woman told us she'd done the math and figured it wouldn't really save her much money to build her house herself. If she kept working and earning a paycheck, she could afford to have someone else (with experience and tools and lower materials costs) build the house for her. So, unless building a house yourself is part of "the dream," you won't necessarily spend a lot more money buying something already built or being built for you.
Partial builds are another way to save. Buying a shell (without adding on too many upgrades!) and finishing the interior yourself can give you some of the custom build experience. Tumbleweed "barn raiser" shells start at $15,000, while finished models start at $58,000. Buying the shell gives you a weather-tight package—saving you the build time of framing and then saving you money by finishing the build yourself.
We found good news from last year to this year when it comes to financing. More tiny house builders are making arrangements with banks. Tiny House Building Co of Fredericksburg, VA, for example, has partnered with People’s Community Bank to provide financing for their houses. SunTrust Bank has a division, LightStream, that specializes in tiny house financing with rate discounts for houses with NOAH or RVIA certification.
The good news for anyone hoping to go tiny, is that there are options for just about every budget. Ways to save money (borrow tools, design around reclaimed windows, buy second-hand appliances) and ways to find money (sell your stuff, move in with a family member, take a "hardship" 401K withdrawal). We closed our talk by saying: "If you've got the will, there's a way." We believe it.
Our topics this year: Off-grid living and Tiny House Budget & Finance. I'll save the off-grid discussion for a future post.
We had given the money talk before, but found updating prices of houses currently for sale or recently completed especially interesting. The average price tag for a home in the U.S. is $207,000 and the average price in the D.C. Metro area, where we live, is a whopping $548,000. Compare that to the price tag for most tiny houses (under 500 square feet): $20,000-$80,000.
It's not a fair comparison without taking into account that traditional houses come with the land they sit on, and tiny houses on wheels don't. We surveyed a group of tiny house dwellers to ask about their home sites; some had bought land, but the majority were renting or bartering for their spot. This adds anywhere from $0 to $800 a month.
One of the joys of tiny living is having a living space that's a custom fit—with just what you need and nothing more or less. But when it comes to value, buying someone else's dream house can save money. One example: a resale currently located in Chapel Hill, NC, for $21,500. If you don't have to move the THOW too far and you have a place to park it, it's hard to beat the price.
A few interesting discussions came up regarding the build or buy decision. One woman told us she'd done the math and figured it wouldn't really save her much money to build her house herself. If she kept working and earning a paycheck, she could afford to have someone else (with experience and tools and lower materials costs) build the house for her. So, unless building a house yourself is part of "the dream," you won't necessarily spend a lot more money buying something already built or being built for you.
Partial builds are another way to save. Buying a shell (without adding on too many upgrades!) and finishing the interior yourself can give you some of the custom build experience. Tumbleweed "barn raiser" shells start at $15,000, while finished models start at $58,000. Buying the shell gives you a weather-tight package—saving you the build time of framing and then saving you money by finishing the build yourself.
We found good news from last year to this year when it comes to financing. More tiny house builders are making arrangements with banks. Tiny House Building Co of Fredericksburg, VA, for example, has partnered with People’s Community Bank to provide financing for their houses. SunTrust Bank has a division, LightStream, that specializes in tiny house financing with rate discounts for houses with NOAH or RVIA certification.
The good news for anyone hoping to go tiny, is that there are options for just about every budget. Ways to save money (borrow tools, design around reclaimed windows, buy second-hand appliances) and ways to find money (sell your stuff, move in with a family member, take a "hardship" 401K withdrawal). We closed our talk by saying: "If you've got the will, there's a way." We believe it.