Investment

Owning a home means that you have paid money to purchase it (typically your down payment and mortgage payments). It therefore has a value that you can get out of your home when you sell it.

Traditional homes have the added value of the land that they are built, which typically increases with time. The land value can become 50% or more of the sale value of the home.

If making the mortgage payments are maintained, eventually the home will be owned outright and the cost of operating the home will reduce by the mortgage payment amount and the full value of the home will be realized when the home is sold.


Pros

  • Tiny homes are much smaller than a traditional home and therefore cost much less to own.
  • The mortgage interest costs in owning a Tiny Home are greatly reduced.
  • Tiny homes can be owned outright faster.
  • Tiny homes do not have the land purchase cost in their price as well as the services setup and connection costs.

Cons

  • Tiny homes will not enjoy the land value increase with time that traditional homes do and will therefore not appreciate in value the same as a traditional home.
  • Tiny homes will not appeal to families that need more space on the resale market.
  • Tiny homes that are not maintained can suffer a loss in value if they become damaged.
  • Tiny homes that travel extensively may have a lesser value depending on wear and tear on the trailer.
  • Tiny homes that are not built to the building code standards may be more difficult to sell on the resale market.

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Latest Post

09 September 2019
I have been meeting and talking to a number of cities about partnering with us to build our Pocket Community Demonstration Project. I have put together a video that covers the important information from these talks, answers a number of common questio...