Author Topic: tiny house + property good or bad investment?  (Read 400 times)

treesner

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tiny house + property good or bad investment?
« on: June 19, 2019, 12:36:40 PM »
I keep going back and forth about this idea of tiny house for and wanted to get your guys take on it from an investment point of view.

Iím looking for a place ~30 minutes from tahoe in the woods (hopefully out of the snow) and would really like to have 2-5 acres of land. Itís hard to find a house + land for a reasonable price but thereís quite a few land only properties which is making me consider the tiny house idea. Ideally I would like to spend 350k. My main priority is having workshop area (woodowkring/art/metal act) so I would probably put up a cheap metal shop building (or small sheds) on the property and the tiny house would just be for sleeping / cooking not really spending a ton of time in it.

I think you would classify a tiny house as a trailer/vehicle which depreciate like crazy. Making it a bad investment.

I know people buy tiny houses  so they can park them on other peoples property. But when I look at the cost of renting a space for tiny houses its as much as renting a room in a house. So I would be purchasing land for the tiny house to sit on. This would probably be considered a good investment but it seems like having a real house on land is a better investment because it is easier to sell to someone.


Abt thoughts on what I should do and if tiny houses are good/bad investments?

Fishindude

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Re: tiny house + property good or bad investment?
« Reply #1 on: June 19, 2019, 01:46:47 PM »
With exception of a few areas, most houses aren't very a good investment when you consider the cost of upkeep, taxes, etc.   You may sell it a few years down the road for more than you bought it for, but after considering expenses, you are unlikely to come out ahead.   Tiny houses appeal to only a small portion of the house buying public.  I think you will come out worse on it than you would on a conventionally built / sized home.

If tiny is your thing and it's not against local codes, etc. just use a camper.   They're probably built as good or better than most of those tiny homes and there are a whole lot of used ones around that can be purchased quite cheap.

A big issue in the remote west is access to utilities; water, sewage disposal and electricity.  Check all of that out before jumping into a piece of property.

waltworks

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Re: tiny house + property good or bad investment?
« Reply #2 on: June 19, 2019, 03:59:46 PM »
Utilities and access are going to be your big issues. Price out what it'll cost to run 220v power out to your land/welding shop. Price out what it'll cost to do septic (and if it's legal). Figure out what property taxes will be if the land is improved/built on vs. vacant.

Land is often not as good a deal as it looks. But sometimes it is, too.

-W

SwordGuy

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Re: tiny house + property good or bad investment?
« Reply #3 on: June 19, 2019, 06:37:18 PM »
Are you a full time artist?   If so, congrats on (hopefully) being in a position where spending $350,000 on *anything* is possible. That's awesome.

Tiny houses are against the grain of current American culture.   So you'll have a harder sell when it comes time to sell, unless you're in an area where rich people want to spend that kind of  money on a weekend get-away rustic cabin.

I don't know what your other residence options are, but $350,000 is a LOT of money to spend on a place to live.   
If you're an artist and can work anywhere, why work somewhere the housing costs $350,000 when you could live somewhere for a tiny fraction of that?   There are lots of beautiful places in the world chock full of nice, interesting people.

My wife and I are doing very well financially and we wouldn't spend that kind of money on lodging unless we had no other choice.   We live in a $330,000 house but we only paid $228,000 for it, which is pretty much the most I would be willing to go.  Took us 4 years to find the right house at the right price and I'm glad we're not on the hook for another $120,000.

I'm hoping the $350,000 cost includes the tiny house, the workshops, and all the various electrical and water hookups you'll need.

PS -- if you find yourself in the Fayetteville, NC area, drop by for a visit.   I've always got an extra seat available in my woodshop and metal/glass and pottery studio.


kandj

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Re: tiny house + property good or bad investment?
« Reply #4 on: June 21, 2019, 11:12:59 AM »
I think the better question regarding the tiny house would be is it legal there?  I built a tiny house and eventually gave up and sold it because it's not legal here in Michigan for full time living. I couldn't justify buying land and bringing the utilities to it....only to get in trouble for living in a tiny house and not being able to use it. A lovely couple ended up buying it as a mother in law suite for their out of state relative to have a private place to stay when visiting.
Also, to the person who mentioned a camper was probably better built than a tiny house....I highly disagree. I bought a camper hoping to simply update it and ended up ripping it down to the metal frame and rebuilding with 2x4's. That Gulfstream camper was literally held together, from the factory, with duct tape in some places.