The Tiny house Blog

8 Reasons Why Buying a Tiny House Can Be a Good Investment

Updated on:
June 9, 2023
the wansley tiny house

As you shop for a new home, it's natural to feel compelled to seek out a larger property. The desire for more space seems to be an innate human instinct, but it's worth considering whether or not such a decision is truly wise.

While you undoubtedly have certain requirements for the number of bedrooms and bathrooms you need, it's common to push for a bit more than necessary. However, in today's real estate market, this often results in a substantially higher price tag.

This can then lead to struggles to cover your mortgage and meet the required deposit, so perhaps it’s time to think more realistically about what you actually need when it comes to your next property purchase.

Thinking about investing in a smaller, more manageable property? Here are a few upsides to consider.

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Saving Money

Opting for a smaller house typically means a lower price tag, which can be a compelling reason to do so in today's financial climate. However, a smaller house doesn't necessarily equate to a cramped living space.

In many cases, custom-built homes are designed to be more ergonomic, ensuring that you don't have to sacrifice functionality or comfort just because you're purchasing a home with less square footage than you would normally consider.

Scaling Down Your Belongings

Moving to a new home is widely regarded as one of life's most stressful events and for good reason. However, choosing to downsize to a home that better suits your needs can actually be a chance to simplify your life.

Many of us accumulate possessions that we don't truly need, which can end up taking up valuable space in our homes. If you're moving to a smaller property, it's an opportunity to declutter and streamline your belongings. This can help make moving day more efficient, which can be especially helpful when working with the best moving companies.

After downsizing to a smaller home, you may find yourself becoming much more aware of unnecessary clutter. It's common for people to accumulate a significant amount of belongings that they don't truly need. However, living in a smaller space can help you recognize this, and the process of decluttering can be quite therapeutic.

Adopting a more minimalist lifestyle can be liberating and make your daily routine more manageable. In addition, you may find that you develop a deeper appreciation for the items that you do keep, as they are genuinely useful and add value to your life.

Inflated Housing Market

The housing market is significantly inflated in most areas, and purchasing a large property could potentially put you in a difficult financial situation.

Many buyers push themselves to the limit in order to climb the property ladder, only to discover that the resulting mortgage payments are unsustainable, which can lead to serious consequences. It's difficult to enjoy the benefits of a larger house when you're constantly worrying about how to keep up with the associated costs.

In contrast, opting for a smaller property may allow you to cover the majority or all of the overall cost upfront, providing you with greater long-term peace of mind.

Lower Bills

Having a smaller house usually means that your bills will be lower since you won't be heating or cooling areas of the property that you don't use. In contrast, larger homes generally result in higher bills across the board.

Over time, these savings can add up to a significant amount of money. Plus, if you're environmentally conscious, choosing a smaller home is a win-win situation, as it not only saves you money but also helps reduce your carbon footprint.

Rental Income

Rental income is one of the benefits of buying a tiny house. If you're not living in your tiny house full-time, you can rent it out to others as a vacation rental or long-term rental, generating extra income.

"Depending on the location, size, and amenities of your tiny house, you could potentially earn a significant amount of rental income, especially if it's located in a popular vacation destination or near a large city." - says Northern Nevada realtor David Tully.

Renting out your tiny house can also help offset the costs of ownership, such as maintenance and utilities, making it a more affordable investment. It's important to research local rental laws and regulations before deciding to rent out your tiny house and to consider the additional responsibilities and time commitment that come with being a landlord.

Take a closer look at this tiny home!

Easier to Maintain

Choosing a smaller house can make your life easier in terms of maintenance. With a larger property, the amount of time you'll spend cleaning and taking care of it, especially if it includes significant outdoor spaces, can be overwhelming and challenging to manage over the long term.

While some may associate the term "cozy" with small, cramped living spaces, there are plenty of benefits to having a smaller, well-maintained home. You'll find that it's much easier to keep a smaller house or apartment in top condition, which in turn provides a greater sense of comfort than a massive house that's difficult to care for with love and attention.

Easier to Get to Work

Living in a tiny house can have its advantages, one of which is being able to easily commute to work. Since tiny homes are often located in urban areas or on the outskirts of cities, it’s much easier to access public transportation, bike paths, or simply walk to work. In larger cities, where rush hour traffic can be a nightmare, a tiny house can provide a solution to avoid long and frustrating commutes.

A Genuine Home, Not Merely a Shelter

Bigger properties, particularly those that exceed our needs, may become monotonous over time. Consider that extra en suite bathroom you insisted on during discussions with your realtor, do you even use it frequently?

On the other hand, a home that is an appropriate size - and to be honest, most small houses only appear small in our minds - is a home that is lived in. We use every part of it, and that's a good thing. A residence where you take full advantage of all aspects and areas of the property can begin to feel like home in the truest sense.

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