How Does Saving $100k Sound?
The tiny home route can help you save a hundred thousand or more in the construction of a structurally sound, “green” property. Tiny homes can be built with exceptional quality, include all the amenities of larger properties, and ultimately retain sustainability as well as property value.
Crunching Some Numbers
Building materials today make it so that a space anywhere from 192 to 644 square feet, ranging from $17,100 to $39,500, and even featuring two levels in some cases, can be effectively built, managed, and lived in. Whether your needs pertain to a piece of property and an independent unit, or a backyard cottage, there is definitely potential for value, utility, and cozy living.
If you were to construct one of the smallest units proposed here and cover its (roughly) 192 sq. ft. roof in solar panels, you could easily fit a 3.1 kWh system on the top. This would cost you less than $5k (figured at $1/Watt plus wiring, battery, current regulator and power inverters). Such a system would yield $18k+ in value.
If it cost you $22,100 to build a tiny home and install a solar system on the top, the property’s value would increase from $17,100 to $35,100 instantly; meaning you could turn it around after completion for profit. Or, you could simply live there sustainably off the grid.
Should solar energy not be feasible for your area, you might look into wind energy. An off-grid 1 kW turbine can be installed for as little as $4,000. If you wanted to double down and ensure you’ve always got energy, you could install wind and solar energy, driving property value to $39,100 (at least) for only $26,100 in expenses.
Dig a garden in the back, install a well, and all you’re out at that point is property taxes. According to Cottage Depot, it doesn’t matter whether you’re experienced in architecture; their plans “…include hundreds of details, sections and illustrations to help the inexperienced crew through the complex task of building under today’s complex building codes.”
Feasibility Explored Further
If you make $2,000 a month, you’re looking at approximately $24K a year before taxes. Get someone to cosign a loan for you in the Summertime and build your tiny home. If you can afford $700 a month, you can have a $26,100 tiny home paid off in just over three years. That’s about what you’d spend on an apartment anyway, isn’t it? But you’re just throwing that apartment money away.
With a tiny home, you’re paying into a property you ultimately own. Provided you pay the loan off on time and negotiate it correctly, by the time you’re done you’ll have spent $26,100 for $39,100 in value. Maintain the garden and premises during that time, and once you finish paying the loan you can list the property and sell it, then do the exact same thing again, but come away with $13k in your pocket.
You can use that additional money to buy a car, finance a wedding complete with dresses from azazie.com, or make changes on the new tiny property. One wise idea if you’re in a colder climate is to ensure the property is well-insulated and includes a chimney; that way you can have a roaring fire in the winter and conserve energy as needed, while additionally increasing value and livability.
One last thing to consider: you can buy an acre of land in the US at an average of $3,020 (depending on location of course). An acre is 43,560 square feet. With a tiny home, that kind of space really feels like so much more. If you haven’t looked into tiny homes yet, there’s definitely lots to love!