Tiny homes are an exciting and novel way to express yourself and enjoy a unique lifestyle. Loved by creatives, artists, entrepreneurs, and free-thinkers, residing in a tiny home can be an amazing and rewarding life choice for all sorts of people!
However, some worry that their tiny home may not be a wise investment. That’s because, compared with traditional homes, tiny home property values can fluctuate substantially. Some tiny homes are also built as trailers, meaning that the exact spot where you move your tiny home will vary, and the value of the home along with it.
Don’t let that get you down. With the right planning, your tiny home can become an investment in the future, as well as an exciting getaway. Here are three ways you can do this.
Purchase your tiny home lot
The first step that you can take to ensure that your tiny home is an investment in your future is actually purchasing the lot you plan to park your tiny home on. That might be a bit of land in the suburbs, a ranch out in the country, or maybe even an uptown vacant lot (with special permitting, of course).
One aspect of tiny home living that can turn your lifestyle into a money pit is renting the lot where you park your home. Some lots can be pricey, even predatory, for those who have nowhere else to place their homes. Think of it this way: when you pay rent, you never get that money back. If you own the land you live on, however, you always have the option to sell it – potentially even at a profit.
If you’re considering purchasing land for your tiny home, keep these factors in mind:
- Location, location, location: The right spot for your home will make all the difference in the long run. Hip, up and coming areas are always a great bet for appreciation on land value.
- Hardware: Does your lot have access to plumbing, electricity, cable, and internet? Investing in a lot with these abilities is likely to secure more value long-term.
- Patience is a virtue: If you have the funds for a tiny home, but not for land to place it, consider holding off on living the dream until you can afford purchasing instead of renting. Your long-term finances will thank you.
Consider fixing & flipping
Of course, investing in the land you live on isn’t the only way that you can turn your tiny home into a smart long-term asset. As with traditional homes, fixing and flipping can be a seriously lucrative enterprise. As someone who lives in a tiny home, you’re something of a tiny home expert. And if fixing them up and making them little dreams-come-true to escape to is something you’re passionate about, flipping tiny homes could become a serious business opportunity for you.
Those curious about fixing and flipping tiny homes should know they have plenty of resources at their disposal. From a VA cash out refinance (applicable only to veterans), which can be used to purchase a tiny home using equity from existing property, to hard money loans that you can use to purchase a tiny home (or several), fix it up, and flip it for a profit.
Invest in upkeep
Lastly, as a general rule, no matter whether you own the lot you park your tiny home on, fix and flip them, or simply own a tiny home and rent your lot, you should always invest in continual upkeep.
It may be true that resale values on tiny homes can waver. And, a used tiny home might not always sell for as well as one fresh out of the workshop. However, you can still get fairly close to your original price (if, for some reason, you do ever decide to sell) by keeping regular maintenance on your tiny home.