I make no secret of the fact that it’s hard living in a tiny home with two small children. Four of us crammed into a two bedroom, one bathroom condo certainly presents a variety of challenges. As the MSN Money article, “What’s the big deal about tiny houses?” notes though, “The tiny house movement is a social and philosophical movement driven by people who choose to scale back their living space in order to be mortgage-free, reduce their environmental impact, and enjoy a more flexible and mobile lifestyle.”
Such benefits have made us stick to our small home living environment, and in the process, we’ve learned just how valuable such a situation can be.
Huge mortgage savings
The most significant savings from going small when it comes to our home applies to being mortgage free. According to creditloan.com, “After 30 years of making payments, a homeowner with a $240,000 mortgage loan will have paid over $580,000 on his/her house.”
Because of the smaller size of our condo, paired with the equity we maintained in our last home, we were able to purchase our small home outright. Where are we were paying about $1,350 a month for our mortgage to live in our last home, which was three times the size and twice the price of our current home, now we are mortgage-free and enjoying not only the savings, but the lower stress as well.
Lower utility bills
Another great thing about living in a small home is the savings on utilities. While items like cable and internet costs may remain fairly non-dependant upon home size, we’ve recognized utility savings in other areas. For example, while our natural gas and electricity bills combined for an average of about $100 a month in our previous home, in our small home, they now only cost us about $70 a month (and we’re much more comfortable when it come to heating and cooling), a savings of $360 a year.
Less in property taxes
With property taxes being based upon size and value of the property, a smaller house is saving us significantly on this aspect of our home-related expenses. Where we were paying almost $5,000 a year in property taxes on our previous home, we’re now only paying about $2,800.
Fewer repairs, less stress, and more time
And then of course, in a small condo there are fewer hassles than when we lived in our single-family home. Of course we pay a $300 monthly assessment for this convenience, but the fee handles things like snow removal, grounds upkeeps, water/sewer/trash services, and most repairs to the common elements and the exterior of the building.
And with a smaller home, there are fewer interior elements to worry about fixing too. So far, our maintenance and repair costs for the year and a half we’ve lived here have been about $200.
This not only takes some of the stress and costs off the table when it comes to being a homeowner, but it also frees up more time for us to do things together, or – since I’m self-employed – more time to work and earn an income rather than maintain a home, which while often rewarding, can be time consuming.
More From This Contributor:
Building a Revenue Producing Blog
I Won’t Be Waiting to Take Social Security
Preparing to Publish My First E-book
The author is not a licensed financial or real estate professional. This article is for informational purposes only and does not constitute advice of any kind. Any action taken by the reader due to the information provided in this article is solely at the reader’s discretion.