One of the biggest mistakes I see people make when wanting to live in a tiny house is that they don’t secure a place to put it.
If you want a long-term, reliable, comfortable, secure home, the best way to get that is to own a home along with the property it sits on, right?
So let’s talk about these issues below, and then I want to know what your thoughts are in the comments below. Thanks!
The Importance of Land Ownership for Your Tiny Home
Tiny Houses on Wheels Versus Tiny and Small Homes on Foundations with Land
If you know you want to own your own land and you want to stay in one place for a long time (you can always travel), then you don’t need to build or buy a tiny house on wheels.
Instead, you can design/build or buy an already existing tiny or small home on a foundation. Most likely the latter. What’s great about this is that in this scenario you become a homeowner and you get to own your own piece of real estate.
This is great because over the long-term, this grows in value. Here’s an important statistical fact you need to know:
STUDY: Long Term Effects of Homeownership Versus Renting
In 2013, according to the NY Times, there was a study done by the Center for Responsible Lending of Federal Reserve Board’s Survey of Consumer Finances.
It reveals that the median net worth of homeowners was $195,400 while the median net worth for renters was $5,400.
But to buy a home, most of us need to get a mortgage. And the tiny house world seems to have something strongly against mortgages and debt. But…
Are Mortgages Really as Evil as we Think?
Since homes don’t appreciate in value (they actually depreciate overtime) and the land/location that the home sits on is what appreciates over time (especially long-term, like 20-30 years and beyond), then isn’t owning a tiny house on wheels without owning your own land just about the same as renting?
I think so!
In fact, it’s similar to RV ownership.
That’s why I believe the tiny house movement, in the long-term, is shifting towards tiny and small homes on foundations with traditional land ownership and yes… mortgages.
Because what’s worse than a mortgage?
Here’s What’s WORSE Than a Mortgage…
Paying for someone else’s mortgage through rent! Right?
This is why I love promoting traditional small homes that you can buy and live simply in without all the complications and drawbacks of tiny homes on wheels or the long-term financial drawbacks of renting.
So what are your thoughts on these issues? Do you agree, or disagree, and why?
And stay tuned for “part two” of this discussion where I talk more about the future of tiny houses.