People have lived in “tiny” houses as long as there have been houses. But the idea to purposely scale down one’s living accommodations began to pick up steam in the early 2000s and has grown exponentially in the last two decades.
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It’s no wonder more people are deciding to become “tiny homers.” Small, mostly-mobile homes are affordable, have lower operational costs are more flexible and customizable than “regular” houses, encourage outdoor, environmentally-conscious living, are quick to build, often require no mortgage and provide owners with more financial independence — the money that might otherwise be spent on a regular house can be invested or added to retirement savings.
The desire to downsize is often motivated by price. According to Rocket Mortgage, tiny houses can cost between $4,000 and $180,000, though the average is $30,000 to $60,000 — far less than the cost of a full-size house.
The True Cost of an Amazon Tiny House
Customers frequently use Amazon to purchase toilet paper, batteries and other household necessities — and pretty much any non-everyday item is available, as well.
Increasingly, this includes houses, which can be bought for as little as $10,000 and promise an affordable, pre-fabricated, convenient solution to traditional housing. However, a tiny home bought on Amazon can cost a lot more than the attractive sticker price.
Here are six ways your dream Amazon tiny house will cost you more than just the sale price.
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Land and Zoning Laws
So, if you’ve bought a tiny house on Amazon, you’ll have already figured in the obvious additional cost of a tract of land to put it on, which can be significant.
However, depending on where you live, you’ll also need to be aware of any zoning laws that may affect where you build/place it. According to Rocket Mortgage, you’ll need to consider things whether putting your tiny house on a family member’s land is free or against zoning regulations in your area.
Home Insurance
According to Progressive, a tiny house is typically between 100 and 400 square feet in size and may or may not require insurance — if you’re financing a tiny home purchase, your lender may deem it mandatory.
It can be difficult and expensive to buy insurance for a tiny house, depending on factors like your location, whether it’s factory-constructed or self-built and if the house is stationary or on wheels.
Utilities and Services
Like the price of land, you should be aware of what you’ll pay for access to water and electricity. It should be less than what you’d pay for owning a full-size house, but you might be spending more than you expect.
Depending on the location, you may be able to hook up to local utilities, but if your house is off-grid, you may need to install a septic system or renewable energy sources, like solar panels. Don’t forget about things like trash disposal costs.
Appliances and Furniture
Some tiny houses come equipped with appliances, but many don’t. Buying appliances for a regular house will cost you an arm and a leg, but for a tiny home, you’ll need to get furniture, cabinet storage and household appliances that are custom-fitted to your new build’s size and your minimalistic and creative aesthetics.
Storage
If you’re moving to a tiny house from a larger residence, the house isn’t the only thing you’ll need to downsize.
Even the most unsentimental person can have difficulty parting with personal possessions, but moving into a tiny house will necessitate some serious gifting away of your possessions. You may need to rent a storage unit if your remaining belongings don’t fit your tiny home’s limited space.
Resale Value
Unlike traditional homes, tiny houses are practical in nature and don’t command big resale values. Because they are highly customizable, belong to a niche housing market and are less durable than a traditional home, they may actually depreciate over time.
As Zillow noted, “It’s helpful to think of tiny homes on wheels as cars, trucks, travel trailers or even RVs. These are individual assets that depreciate over time. This means that while a traditional home may go up in value over time, a tiny home on wheels is likely to go down.”
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This article originally appeared on GOBankingRates.com: 6 Ways an Amazon Tiny House Will Cost You Beyond the Sticker Price
