If you’ve turned on the television at all recently, you’ve probably seen at least one mention of tiny homes. Tiny home buying has become a popular fad in the world of real estate, and for some individuals and even families, these little spaces can be the perfect solution to money or travel issues that many people face these days. However, if you’re thinking about buying a tiny home, you may be wondering if they’re a sound investment. Check out our tips below to help you figure out whether or not a tiny home is a good investment to suit your needs.
There’s No Proven Market: Since tiny homes are still just a fad, and have really only been popular for the past few years, there’s no proven market to determine how they’re going to appreciate or depreciate with time. There’s also no way to tell how popular they’re going to remain in the future and whether or not there will be any buyers for them in the long run. If you’re buying a tiny home (or building one) in the hopes of flipping it for a profit, you’ll need to work quickly to see any return on your investment, in the event the fad dies down soon.
Interest is Low: These homes are more popular with single people and couples than they are with families. Although there are certainly some families who are interested, they are few and far between. If you’ll be renting or reselling your tiny home investment, you’ll need to think hard about the kind of people who live in the area where you’ll be placing it. If there are a lot of young people who may want to buy a tiny home as their first home, you might have better luck.
You Can Save Money: It’s true that tiny homes don’t cost as much as full-size homes. If you’re looking to buy or build a tiny home without the investment cost of a full home, you can save money. However, you’ll need to be shrewd and on top of things when you’re reselling or renting it out to ensure that you don’t lose money in the long run.
You Need Land: Don’t forget that the house is only part of the investment when it comes to tiny homes. You’ll also need land. If you’re doing this as an investment, you’ll want to buy land instead of renting it, which can add to the overall cost considerably. Shop around and choose land that’s affordable without sacrificing location. It may take a long time to find the perfect piece of land for your tiny home.
Are you looking to downsize? Click here to create a custom home search to get listings based on your search criteria.