People believe that “the bigger, the better,” but it contradicts another common phrase: “less is more.” The argument lies as to how and where they will be applied. Both share the same magnitude because the options are basically dependent on the need- what is being required. There are variables to factor in when considering which to observe.
Take real estate, for instance. There are a variety of classifications that fall under the category of housing. There’s the apartment type, condominium, single-family residential, and a lot more. These classifications are designed to cater to an individual or group’s needs, whether as a buyer or investor. Apart from their needs, another vital factor to look into is their economic status.
Owning a house requires severe deliberation, and whatever potential complication has to be sorted out beforehand to avoid problems in the future. In real estate investing, the things to consider are the location, lifestyle, income that will cover the financial aspects, even the psychological state has to be looked into.
Given those variables, we come to ask, “Why do people choose to downsize, go tiny, live compact? Regardless of how it is called, the argument still stands. They prefer to live in a much smaller house, the unorthodox way.
Each has his own reason for choosing to live in a compact dwelling space. While there are positive responses, there are also some who negate the idea. They see no logic behind this concept because, apparently, this kind of “living” is not generic. It is only applicable to couples or singles and never to a family of 4, let alone 3. Comfortability is one of the primary concerns, given its cramped space. According to the naysayers, this type of property provides transient accommodation only because children will grow up and would require a much bigger space to live comfortably. Considering that, investing in this kind of real estate property is not pragmatic. Only “risk takers” would engage in real estate investing, especially in that kind of stuff where security and stability are both questionable. What has driven them to that conclusion? The house itself is not built on “steady grounds” to begin with. And lastly, there is a drastic change of lifestyle for anyone who chooses to live tiny because it is not conventional.
But the question remains, why do real estate investors choose to go tiny nowadays? Why is it pervading the real estate investing business world? Is it because they are content with sleeping on top of their kitchen ceiling or enjoying the mere five steps to and from the bathroom and living room? Or perhaps, they lack in funds to support their “conventional” housing needs. Or could it be that they’re channeling Mari Kondo into their lifestyle? Only they know. Then again, the debate continues. Why live tiny?
“If one’s life is simple, contentment has to come. Simplicity is essential for happiness. Having few desires, feeling satisfied with what you have, is very vital: satisfaction with just enough food, clothing, and shelter to protect yourself from the elements.”
The Dalai Lama
What to expect in a tiny house?
Regardless of their size, tiny houses serve the same purpose as big houses do. Tiny houses provide shelter and comfort to their homeowners. Then again, people have different senses of comfortability. What works for you may not work for them and vice versa.
These compact dwelling spaces come in different styles and sizes. The majority are loft-style single bed units, but they can also accommodate an additional sleeping space. All have indoor toilets and bathrooms equipped with sewage systems and plumbing. The same goes with its kitchenette, complete with basic necessities, including a sink and “miniature” appliances. The living room shares the same space as the dining area, which makes mobility very limited. There are many reasons, but just the same, those who ride the wagon surely have conducted validation to justify their decisions. While the number of negative facets is countless, there are also positive implications. Below is a list to give you insights as to why they could have chosen to go tiny.
a. Pocket-friendly
The cost of a tiny house is cheaper compared to traditional homes. However, they have to put into the equation the fee for parking if on wheels or the lease for the land where they will set up their tiny home. Lower property taxes are to be collected but be wary of personal property tax, though.
Homeowners also get to be disciplined in their spending habits knowing they don’t have storage spaces to keep their purchases.
b. Eco-friendly
Since the house itself is tiny, it requires a minimal energy source to power its appliances, producing less carbon footprint. Dwellers of this abode most likely observe sustainable living practices.
c. Low maintenance
The house is easier to maintain in terms of cleanliness and the utilities, as well. Given the small space, the required heating and air conditioning systems are also low.
d. Freedom of mobility
Most of the tiny homes constructed are with wheels giving its homeowner the advantage of being able to move from one state to another (subject to the state’s law)
This lifestyle makes traveling very conducive.
They get more out of life. How? They can save on the mortgage and other taxes, which enables them to splurge on other things like recreation, dining, or travels—having a small space to maintain means more time to spend on other things like family and “me” time.
Being able to weigh in the negatives and the positives come when not everyone is eligible to live in a tiny home. It is vital to be mindful of all the inputs to acquire a sound output in dealing with real estate investing.
What are the requirements needed in acquiring a “tiny house”?
Acquiring a tiny house is not as tedious and rigid as that of a traditional home. BUT still, it is as critical because you need to make sure that you comply with all the regulations and codes governing this movement. Then there’s the zoning permit. Where do you plan to set up your tiny house? Do you have a piece of land to serve as its grounds? If you prefer it on wheels, was the construction stability met? How durable is the house to begin with? Some counties also require additional or different permits or codes for your house to be considered the central unit and not just an auxiliary. There may even be some that do not allow tiny houses to be constructed or transported.
Whatever the reasons are for choosing to go tiny is solely dependent on the homeowner/ buyer. If you decide to go with the trend, it is best to know if this is really the one you deem fit for you.
Excerpts: In real estate investing, the things to consider are the location, lifestyle, income that will cover the financial aspects, even the psychological state has to be looked into.
Snippets: Why do real estate investors choose to go tiny nowadays? Why is it pervading the real estate investing business world?
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Disclaimer: The blog articles are intended for educational and informational purposes only. Nothing in the content is intended as legal or financial advice.
https://www.foxbusiness.com/real-estate/tiny-home-phenomena-the-pros-and-cons-of-living-in-a-micro-home
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