Tiny homes are a huge topic of discussion these days and they are getting more popular all the time.
If you are planning a move into a tiny home, one of the biggest considerations is going to be the cost.
There are many different factors to consider when buying a tiny home.
The home itself is not the only thing that you need to pay for. There are other costs involved.
Here are some important questions and facts that you should know about tiny homes and cost.
1. Is it cheaper to buy or build a tiny home?
The answer to this question is not always straightforward and can be different for everyone based on a variety of factors.
Building a tiny home is typically cheaper but that is not always the case.
The cost of building a tiny house can vary depending on the design and the materials used.
Many people choose to purchase an already built one but then need to pay for land and utilities which has an effect on the overall price as well.
2. Can you build a tiny home for $5,000?
Not typically but it has be done. There are kits available that you can buy for around $5,000 if you use a cheaper pre cut kit.
These kits are better for people who are new to building these homes. They will generally have a complete exterior structure but not include the interior.
These pre cut kits will come with everything you need as far as hardware goes to complete the build of the shell including the roof and walls.
But it will not include any electrical or plumbing. Basically anything needed for interior work will be excluded.
Tiny homes under $5,000 will be smaller than more expensive options. They are usually around 100 – 200 square feet in size.
3. Is the cost of a tiny home worth it?
Whether or not the cost of a tiny home is worth it will come down to you and the type of home you choose and the investment. Some people think they are well worth the investment while others do not.
For me personally, I am on the fence and leaning towards them not being worth it.
Here are some reasons why:
- Tiny homes cost more per square foot. You get less bang for your buck.
- They are very easy to overcrowd and expanding the family is difficult and costly if you have to build on to the home.
- Where you can live is limited.
- Your tiny home may be difficult to sell if you need to.
- Tiny homes actually depreciate in value where the opposite happens in a regular-style house.
4. Tiny home costs
The price of a tiny home can vary from $25,000 – $60,000 with the average cost being around $45,000.
It is possible to get them much cheaper depending on what you want to be included.
You can buy a small pre-cut kit that is very basic for under $10,000 or buy one with all the bells and whistles for over $100,000.
One of the biggest concerns with the cheaper tiny homes is they may not come with basic requirements like a bathroom.
This can be a concern and will restrict you from living in certain areas as they may be required by local building codes.
What are the hidden costs of owning a tiny home?
There are several hidden costs of owning a tiny home that often get overlooked.
Many people tend to forget that you will still have utilities like power, phone, cable, water, etc.. to pay for. The amount you need to pay will depend on your location and where you plan to set up your tiny home. Services may not be available in certain areas.
New furniture and appliances
When you move into a tiny home, chances are you will be downsizing and won’t be able to use your current furniture and appliances.
You may need to purchase all new furniture and appliances that will fit into the home which is an additional expense.
Tiny homes are insurable and you will need to talk to your insurance company about what type of insurance is needed and associated costs.
Personal loan interest rate
If you don’t have the money out of pocket to buy your tiny home, you will need to get a loan. Banks typically will not give a mortgage on a tiny home purchase so you will need a personal loan which will most likely have a higher interest rate than you expect.
Missed time at work to build
Most people don’t consider this but if you have to take time off of work to build your tiny home, it will result in lost wages at work.
It may take you 1 or 2 months to complete the build where you may not be able to work at your normal job.
As mentioned earlier, tiny homes generally depreciate in value over time. So their resale value will be less. Don’t expect to make money on the purchase if you decide to sell down the road.
6. How much does plumbing cost for a tiny home?
Plumbing costs can vary depending on the home you purchase but on average, expect to pay between $1000 -$1200 for a plumbing job.
7. What is the price per square foot for a tiny home?
The price per square foot on a tiny home can be more than double the price on a regular home.
On average, a standard-sized home will have a cost per square foot around $150.
Tiny homes can have a cost per square foot of $300 – $400.
8. How much does a luxury tiny home cost?
For most people buying a tiny home, the objective is to downsize and save money. Although you can buy a tiny home for cheap, there are some luxurious tiny homes available as well.
There are many additional bells and whistles that you can add to your home. Things like granite countertops, high-end bathroom fixtures, extra storage, separate office, and much more.
Luxury tiny homes can cost anywhere from $125,000 – $175,000.
9. How much does a trailer cost for a tiny home?
If your tiny home is not in a fixed location and you will be moving it, you will need a trailer.
There are many different trailers available and the type and size that you need will depend on your tiny home.
If you are planning to purchase a trailer, they start at around $3,500 and can go as high as $12,500 for the larger models.
You should be able to purchase a 20 – 24 foot tandem axle trailer for around $5,000.