Thursday, June 20, 2013

Guest Blogger: Tim Richmond: Tiny Homes, the Financial Shortcut of Real Estate


Tiny Homes, the Financial Shortcut of Real Estate


Many people spend their entire existence with the goal of paying off and owning a home. While this is traditional, it doesn’t mean that alternative real estate goals are in the wrong. An emerging form of financially viable real estate can be seen within the tiny home movement. People are starting to reassess their aspirations when it comes to homeownership, and it’s beginning to change real estate landscape across the nation.

Tiny homes have disadvantages and advantages when compared with traditional real estate, but one clear benefit is that they are much more financially attainable. Below I list the ways that moving in the tiny home direction can save you money if you are interested in becoming a homeowner.



lL   Lack of debt.

                               

When people purpchase property in the traditional real estate world, they are forming what is usually a 30 year commitment when mortgage is concerned. The ballpark of 30 years is a long time to commit to anything, let alone monthly monetary payments. A major advantage of tiny home real estate is that they don’t lead to much debt. They cost roughly $20,000 to build yourself and $50,000 to have one built. These prices are much, much lower than traditional housing. Most people who are legitimately considering a real estate purchase have at least $20,000 saved up for a down payment and start-up costs. Using this money toward a tiny home would cover much more of the total cost, while still providing a place to live.



Noticeable: Debt is a commitment that accrues interest and doesn’t fluctuate if your job or situation changes. Tiny home real estate offers an option to acquire and own property quickly, or even immediately.



2.  Energy costs.

               

The square footage of a house is directly related to monthly energy costs. Because of this, tiny homes are much more financially viable when energy consumption is considered. Every type of energy bill that people receive each month would be decreased substantially. This makes a noticeable difference in your bank account. It’s always a bonus in 2013 when something can be environmentally friendly while also saving money.



Noticeable: Being able to spend money on other interests rather than sky high energy bills is a major factor for those who support the tiny home movement. Reduced energy costs equate to more personalized spending.



3.  Amount of possessions.

               

When less space is available, there is inherently less room for possessions. While some view this as a positive and some view it as a negative, financially it is most definitely a benefit of tiny homes. If you were the owner of a tiny home, the decreased square footage would require far less furniture. The size would also limit excessive purchasing, thus keeping money in your pocket.



Noticeable: Many houses around America are littered with useless and dated possessions. Tiny homes are unique in that they eliminate potential for excess material objects. This can save you money, especially in the long run.



 The way that America has operated over the last several decades is that bigger is always better, particularly in real estate. The success of people is too often judged on the size of their garage and the number of bathrooms in their house. The American Dream is being achieved in alternative ways in 2013, and tiny home real estate is one of those ways. Bigger is not always better, particularly when finances are concerned.



Tiny homes may be small, but they’re making a large splash in the pool of American real estate.





Tim Richmond writes about the mortgage industry, real estate, green building, personal finance and home ownership. He currently writes for the Native American mortgage specialists 1st Tribal Lending.

Friday, January 11, 2013

JobTrak PA is about a new start!

#TGIF! Give us some #FF luv! We're working with #PA's 14 #comm_colleges to fill in-demand #jobs! http://t.co/7fSWuJ55 #career #adulted