Purchasing a home is an important time in your life. However, you might want to think twice before purchasing a large home. In this post, you’ll learn four financial reasons why owning a tiny house could be a lucrative economic choice.
Freedom from Debt
Many people feel that debt has taken over their lives. For instance, this article found that the average credit cardholder carries $5,100 worth of debt. You can also incur debt through education loans or after having a large home built. If you want to get out of debt, it’s essential to reduce expenses. The average small home’s construction costs around $23,000, far less than an average-sized property.
Lower Utility Bills
Part of living inside of a home means paying bills. With that in mind, it’s important to consider how much money goes towards utilities. Studies found that the average household spends $2,220 on annual utility costs. If you want lower utility bills, it might be helpful to consider living in a tiny house. Tiny houses need far less energy when compared to larger homes. Tiny homes also lend themselves to being powered by renewable energy sources. Solar panels and energy storage systems make it possible for tiny homeowners to go off the grid and use renewable energy sources to power their homes.
Lower Property Taxes
You’ve likely heard that death and taxes are two unavoidable parts of life. However, you can take measures to ensure you’re paying fewer taxes each year. If you want to pay less property tax, it’s wise to consider moving into a smaller home. In most cases, property tax is based on the value of your home. This means people owning large properties often have to pay more property tax than those residing in tiny homes.
Less Temptation to Add Clutter
After moving into a home, it’s tempting to begin decorating right away. Unfortunately, a few decorating ideas often lead to a house that’s filled with clutter. Excessive amounts of clutter won’t only drain your bank account. It also creates stress. Having too many items in your home makes it feel cramped. This is why many homeowners feel better after downsizing and moving into tiny homes. In turn, homeowners don’t have to worry about emptying their wallets while decorating these properties. Of course, if you’re not quite ready to bite the bullet when it comes to downsizing, you can take a more gradual approach to a minimalist, tiny home lifestyle. You’ll still want to declutter unnecessary items, but you always have the option to store certain items in a separate storage unit if necessary. Although, keep in mind that this should be a short-term solution to help ease you into the lifestyle. After living without these items, you may find that you don’t really miss them at all.
There are several wise reasons to consider living in a tiny home. If you’re wanting to save money, moving into a tiny home is a no-brainer. After all, who doesn’t want to save more money throughout their lives? If you want to spend less on utilities and taxes, consider moving into a smaller property.