Is this a good investment? (tiny portable house)

[karenkc]

It saves on rent because these are easy to pay off. However, the value declines the moment it's bought. So I can't decide if it's a wise financial decision.

Tumbleweed Tiny House Company

[disneysteve]

If the "value declines the moment it's bought" then it would be a lousy investment. That's like buying a brand new car as an "investment".

[karenkc]

True but what about having no rent after it's paid off?

[snshijuptr]

Think of it like buying a new car withb cash. You could say, "but otherwise I would be renting" but then I shoot back, but otherwise you'd be taking the bus.

[karenkc]

The hypothetical rent would be the same as the loan payment for approximately 4 years. Then there would be no payments for housing after 4 years if the tiny house had been bought instead of rent. This doesn't relate to a car or bus in terms of money saved. I think this thread has gone down the logical drain.... Nevermind. lol.

[cptacek]

It might be a good financial decision if you really are going to live in it. If that is all the space you need, why not? After 4 years you have your house paid off and you can't spend your money on clutter because you wouldn't be able to fit it into your house.

But I don't think it is really an investment.

[jIM_Ohio]

It saves on rent because these are easy to pay off. However, the value declines the moment it's bought. So I can't decide if it's a wise financial decision.

Tumbleweed Tiny House Company

If you want a place to live, then its not an investment (its a place to live)
If you buy something for $10 and its worth $5 when you sell it, is that an investment?

[Joan.of.the.Arch]

You still would have to buy or rent somewhere to put the house. And the places you could legally put it will be limited to places that will allow you to connect RV type plumbing to local sewers or septic systems and water lines--Unless of course you go super simple and just make your own separate outhouse and carry in & out tanks of water. If there are no local sewer or water lines, you'd also have to drill a pump (assuming there is accessible water on your property) and install a septic system of your own. The houses come wired; i electricity what they use for any heating? Do you live in an area where electricity is a reasonable expense for heating? Do these little houses have adequate insulation to even heat? Is any kind of gas or oil heating and/or cooking even a possibility? Would you have to have those delivered?

Could it be making that separate arrangements for all these utilities is complicating your simple little porta-house with a jumble of outbuildings and spots on your property that need to be kept cleared and sheltered from the elements?

I suspect you are pretty much limited to setting up a little trailer like this only in a rural area. I don't know, maybe trailer parks would allow it.

I just think there are a lot of questions to be asked.

[karenkc]

Joan.of.the.arch-They have heat/insulating. You can even put in air conditioning. They have full bathrooms with showers. Some have kitchens with stoves and a dishwasher. The houses on wheels have the RV hose for sewer/water. I don't think I would want to do that though. They have houses without wheels. These get water like any other house without the RV hose. Then I would have to factor in renting land which of course is another expense.

I shouldn't have called it an "investment" in my original post. I should have just asked if it was a wise financial decision to have more money long-term due to money saved on rent or not buying a full priced house.

wincrasher- You sound like a crazy person.

[Broken Arrow]

Ah, Tumbleweed houses! I've been looking at something like that for a while now.

For better and worse, they work much like RVs and trailer homes. Yes, they're quite affordable, but yes, they also depreciate in value....

To me, the biggest downside is that they use RV technology for toilets and showers. Makes it hard for it to become a primary residence I think, unless you're er very ecological, in which case, a composting toilet is also worth looking into?

Actually, I stand corrected. They also build small houses. For example, I kind of like this Z-house, if nothing else because of the space efficiency.

The only thing is, the cost is still going to be around $100 to $200 per sq ft. which I think is fairly pricey.... You'll also have to consider where to build that, as I think some residential zones may not allow it.

Well, I guess I stand corrected again if you can build this on your own. Then you should be able to get the cost down some more. You'll still want a plumber and an electrician (unless you or someone you know is also certified in that), and you'll probably want help to lay down the foundation.

Anyways, it's all very interesting to me. Housing is perhaps the single biggest purchase most of us will make in our lifetime, so I say it's worth at least a discussion or two. Two other blogs of interest is Tiny House Blog and maybe Inhabitat.

[disneysteve]

I shouldn't have called it an "investment" in my original post. I should have just asked if it was a wise financial decision

Ah. That's a very different question.

It is a lousy investment.

If you are happy living in a closet, you will likely save a ton of money over traditional housing. As long as you invest that money wisely and don't blow it on restaurants, travel, booze, smokes and lottery tickets, it could turn out to be a great financial decision. Your household expenses would be minimal compared to the average homeowner.

[jIM_Ohio]

Ah. That's a very different question.

It is a lousy investment.

If you are happy living in a closet, you will likely save a ton of money over traditional housing. As long as you invest that money wisely and don't blow it on restaurants, travel, booze, smokes and lottery tickets, it could turn out to be a great financial decision. Your household expenses would be minimal compared to the average homeowner.

Is wasting the money on drugs and loose women acceptable then? LOL

[jpg7n16]

Ah. That's a very different question.

It is a lousy investment.

If you are happy living in a closet, you will likely save a ton of money over traditional housing. As long as you invest that money wisely and don't blow it on restaurants, travel, booze, smokes and lottery tickets, it could turn out to be a great financial decision. Your household expenses would be minimal compared to the average homeowner.

I totally agree with DS's post here.

[disneysteve]

Is wasting the money on drugs and loose women acceptable then? LOL

You'll notice I also left casino gambling off the list.

[Joan.of.the.Arch]

Sorry if I sound like I was putting down the house. I was just trying to point out that your full housing price is not paid simply by paying for the house alone.

But you think you might rent property that just has water lines ready and waiting? Where I grew up, my parents connected to a public water system, but had to get permission to cross and dig someone else's property to do so. The pipe had to cross 8 acres. $$$. Leaks developed on the other person's property twice. More $$$ and the ire of the neighbor having heavy equipment on his field which he kept mowed as a gargantuan lawn. My parents finally disconnected from the public system and had their own well drilled. $$$ That required an electric pump and a pump house--more electric work, more permits, more foundation digging, more construction (but they also made it big enough to also store garden tools, small tractor). Again $$$. For Wincrasher, the next owners of that house did install solar collectors (and this was back in the 70's)! Supposedly inexpensive, independent homes can end up costing more that you might guess.

I'd love to hear more about what you find out if you look into this seriously, beyond this forum.