Quote:
Originally Posted by ME_Andy
But I was wondering if anybody has crunched the numbers about whether it's more cost-efficient than a house? Or maybe, a better investment?
It seems to me that an RV or trailer+truck wouldn't be worthwhile vs. a small house.
|
As they say .. the devil is in the details.
IT can swing both ways .. depending on the specific details.
Quote:
Originally Posted by ME_Andy
So basically you halve your payment and your $ down, but you own a depriecating asset instead of an appreciating asset and you'll be paying rent forever?
|
The paying rent forever is not inherently part of a Tiny-House... There are people who put it on land that they own .. and thus they own it just as much as any regular land owner does ... it just cost them less initially up front .. and potentially cost them less to operate/maintain it.
Nor is (that kind of monthly fee forever) guaranteed to be avoided in conventional size houses .. I know people who pay $400+ / month to housing associations (for conventionally large houses) ... which financially $400+ / month is the same forever bill ... $400+/month forever is $400+/month forever no matter who is handing the bill to you or what they call that bill.
Both types of assets face the forces of depreciation .. a 100+ year old house (I just bought and moved into one) ... that has not been updated or well maintained is massively depreciated ... it might not even be legal to live in it anymore ... same thing with how well the asset was maintained and such .. if the asset has been well maintained , updated , etc ... it will appreciate in value (not depreciate) ... this is true for either type of house ... tiny , small , regular , large , etc ... If anything the tiny house has a inherent benefit due to it's size .. it requires less investment of time and money in order to maintain it , update it , etc.
Also ... only in cases where someone is relocating very often (several times every year) .. would buying a truck ever make itself financially worth investing in .. If in an apples to apples comparison you move the tiny house as often as you move the other house you are comparing too .. you rent the moving truck ... you don't buy and drive around a moving truck because you might want to use it when you eventually move from a house... you only buy a moving truck if you are using it soo frequently that it is cheaper to buy it than rent it.
Also .. another devil detail ... if you are the type that is constantly relocating .. on the road ... etc ... you won't make any financial progress paying for closing costs and such on regular houses if you are relocating all the time .. several times per year ... or if you spend enough days per year in hotels .. there reaches a break even point where the RV site rental fees are actually a net lower total cost.
but ... it all depends on the specific details... sometimes for some people it isn't about $ ... for others it is.