What Are The Financial Benefits Of Living In A Tiny House?

by Sloane Antonacci

The quarter acre block with the large 3 bedroom home has been "The Great Australian Dream" for generations. In this day and age....the bigger the home the better has been the ideal for many. But with this dream comes the unattainable price tag which means not many Australians will be able to realise this dream! The Australian Median House price is a whopping $570,000 - which is out of reach for a growing number of people in this great nation. 

How can more people realise the great Australian Dream? 

Many people are turning to the growing trend of downsizing and buying a Tiny House to help realise this dream. Let us consider some of the financial benefits of downsizing and see why this trend is starting to grow more rapidly throughout Australia.

Freedom From Debt

The Tiny House Movement has been growing exponentially in America for the last 10 or so years and there have been many studies done that indicate that around 67% of Tiny house owners have no credit card debt at all. ALso, these studies have shown that 68% of these tiny house owners don't have a mortgage. At an average cost of $75,000, tiny houses are cheaper and oftentimes a lot nicer looking than many traditional houses that can be built within that price range. They are also built to last a lot longer that any other house within the price range as they are built using the same building methods of a normal permanent ome.....except smaller.

Not only are tiny houses cheaper to build or purchase, but since there is minimal space to hoard and store things in a tiny house, they provide freedom from excess consumerism which is what usually plunges a lot of people into financial hardship. When you choose to downsize and live in a tiny home, you must be very selective of your possessions and what you bring into the house.Naturally, this lifestyle leads to less spending, less accumulation of stuff and consequently....less debt (which is a bonus!). 
Not only this, but the cost of storing, shopping for, and replacing items drops significantly, freeing up the household budget as well as the schedule.

Overhead Expenses Are Lower!

With the average Tiny House being around 35 square metres, the cost of heating or cooling this space drops significantly and the average electric bill for tiny house owners in the US is around $40 a month. Add to this the reduction of other bills such as property taxes, large appliances, home repairs and property maintenance and your weekly household budget looks a lot healthier. 
Even your grocery bill decreases because there is less storage in a tiny house to store excess food items and consumable. This also results in less waste which saves you money as well.

The Freedom To Spend And Save

Going tiny gives you the freedom to save and spend however you want! But didn't you just say that going tiny discourages consumerism? you may be thinking.....Yes! But what I mean by this is you will have more leeway in your weekly budget due to less overheads and bills....which means you have more freedom to do, save or spend your money however you like.

For example.....older retirees will be able to use the excess money saved in their budget to pay for growing medical bills or to have more freedom within their retirement. With the younger generation who have that urge to travel the world....by living in a tiny house, they will be able to save the extra money and use it to travel without having to go into debt to do so.

Other Financial Advantages to Living in a Tiny House

Unlike traditional houses, a tiny house (if built on a trailer) doesn't need council approval and falls into the caravan act. You will save a lot of money and time as you will bypass this process. 
Rent for land to park your tiny house is really low as well (average $100 per week compared to the average rent of a 3 bedroom house being $350 per week). Regardless of your preferences and space needs, the advantages and cost efficiency of living in a tiny house can not be denied. 

Maybe the Great Australian Dream of home ownership is not so far out of reach as you may think!