Buying and financing a tiny house? 3 tips
We see them appearing more and more in the landscape: tiny houses. A tiny house is a full-fledged primary home, but built with a maximum of 50 square meters of living space. And that includes any floors! A tiny house is also in a fixed place, so it cannot be moved like a caravan. Because tiny houses are still a reasonable new form of living, it is not self-evident that you can place a tiny house anywhere. Sometimes you have to buy a building plot or look for a holiday park where permanent residence is possible. However, there are various municipalities and initiatives that would like to contribute ideas about this. Does a tiny house seem like you are buying something and would you like to delve into the possibilities? What about a mortgage for a tiny house or are there more ways to finance? We are happy to give you 3 tips when it comes to borrowing money for and purchasing a tiny house.
The right preparation
If you are seriously considering buying a tiny house , good preparation is extremely important. A tiny house means 'downsizing' for many people. Just like with the purchase of any other home, it is also important for a tiny house that you think carefully about what your minimum wishes for the home are. Perhaps this is even more important with a tiny house, because the space is so limited. What is indispensable for you? Then you can see what the range of designers and builders has to offer.
Would you like to make a design for the house yourself? Then go to work with masking tape with which you can stick the house to the floor in full size. This way you can already 'taste' whether the rooms are large enough for you. And you may even be able to start throwing away items you no longer need. The less, the better! In addition, look for information, builders and possible locations where placing a tiny house is allowed and see if you can get in touch with other interested parties to exchange tips and information with each other.
Mortgage tiny house
There are no fixed prices for a tiny house. It depends on how crazy you drive it, what materials you choose and whether you may be helping with the construction. Would you like to live off-grid, an approved trailer or bio-based living, for example? Then the cost will be higher. In general, a ready-made tiny house should start at $ 40,000. You can often build your own from $ 25,000.
A mortgage for a tiny house is a bit more difficult to obtain than that of a 'standard' home. Many mortgage lenders require that a house is built of stone, is secured to the ground, that there is an environmental permit and that you can register in the BRP at that address. With long lease you can in many cases just get a mortgage for a tiny house. In that case you do not own the land, but you receive it on loan. You pay a so-called 'canon' for the land, which can sometimes also be repaid in one go. Leasehold is often agreed for a longer period of time and you may resell the pitch under certain conditions.
Financing a tiny house with a loan
When you are going to buy a tiny house, you can also think about other ways of financing. In addition to a mortgage for a tiny house, you can think of crowdfunding or crowdlending, and borrowing from friends or family. Financing a tiny house is often also done by means of a personal loan or a revolving credit . With a personal loan you know exactly where you stand and when the loan is repaid. The interest and term are fixed.
A revolving credit is useful when you are going to build a tiny house yourself. If construction unexpectedly turns out to be more expensive, you can withdraw repaid amounts again. You do have a variable interest.