Micro-Homes

Thunderbolt online casino players and other big city dwellers are checking out the feasibility of living in a micro-home or micro-apartment. These small living spaces – generally under 300 square feet – provide relatively cheap places to live and give new homeowners a chance to become property owners at a price that they can afford.

It can be challenging to live in such a small home but for many, the rewards outnumber the difficulties.

About Micro-Homes

As the demand for the ability to own a home – often in the world’s largest cities – increases, the popularity of small dwellings is rising. These homes, often referred to as “micro-homes” are being built around the world including in rural areas and in small towns as well as in the center of the world’s most densely-populated cities.

The average size of a new single family home in the United States stands at more than 2,500 square feet. Wealth and prestige are 2 reasons for the phenomenal growth, despite the fact that the size of the average family has decreased.

The small house movement refers to a return to houses of less than 1,000 square feet. (there’s a distinction made between small (between 400 square feet and 1,000 square feet and tiny houses that are less than 400 square feet). Some tiny houses can be as small as 80 square feet.

Some of the movement towards smaller homes is due to ideological reasons while other reasons include practicality. Those who promote micro-homes for ideological reasons believe that you can be happy and satisfied living in a shelter that minimizes your footprint on the planet.

Practical Reasons for Micro-Homes

The ideological reasons for the small home movement is all nice and good but promoters of small homes say that there are plenty of practical reasons for checking out whether a small home is the right move for you.

1. Small homes cost less. They cost less up-front when you purchase the house and it costs less to maintain the house. Prices for everything are reduced – your home improvement projects cost less because the size of the house is smaller. You spend less money to furnish and decorate the house. Heating/cooling costs are reduced as are property taxes and insurance costs.
2. You save time when you live in a smaller house. It takes you less time to clean the house, care for the yard, fix problems and take care of other house-related issues.  
3. You can live more simply in a small house. Since you have less space to store belongings you’ll be forced to give away items that you don’t need, rather than sticking them in a corner for “maybe later.” You simply won’t have so much stuff which can give you a feeling of freedom.
4. You’ll be able to focus on quality when you upgrade because you have a smaller surface space to cover. For instance, if you renovate your kitchen, instead of creating a 25 sq. foot kitchen (with needed countertops and cabinets) you will be able to get better quality workmanship and materials in a smaller space for the same amount of money.
5. You may find that it’s easier to sell a smaller home. As other homeowners focus on savings, they will be more likely to buy your energy-efficient, less-expensive small house.

Remember – a small home isn’t a tiny home so you can buy a small home and still enjoy living space that gives you room to move around.

Disadvantages

There are also reasons to stay conventional in your house hunt.  The small, compact and often-mobile houses may sound practical — they are, after all, homes with plumbing, appliances, electricity, plumbing and everything you’d need in a place to live in a modern dwelling.

Real estate professionals say that, for investment purposes, buying such a home is highly impractical. They believe that it’s a trend that will die out, leaving you high and dry and the owner of a home that you won’t be able to resell.

It’s true that real estate agents have a vested interest in promoting bigger (and more expensive) homes – they earn a percentage of the sale, so they take a bigger fee on a sale of a larger house than that of a smaller home. However, it’s worth listening to their thoughts on why you shouldn’t invest in a micro-home.

It’s an unproven market that is presently artificially inflated because of reality TV shows that feature families living in a micro-home. A homeowner might want to simply life by reducing financial obligations, it’s not clear how long this trend will play out.  Investing in a micro-home isn’t worth the risks.

1. There isn’t enough demand to justify the investment. Real estate sales are dependent on supply and demand. This is called a “niche” home – one that fits only  small demographic of buyers. The more niche the home, the fewer the number of potential buyers.  If you are planning to stay in the house for a long time, it may be a good move. However, if there’s a thought of moving on in a few years, be prepared for a long on-the-market period.
    
2. The disadvantages of living in such a small space don’t compensate for the advantages. Most small homes can accommodate one to two residents. People want to have their personal belongings with them. They want to have options for expansion, hobbies, storage, a pet, home and yard equipment, etc. If the house is located in an area where the climate is nice and the doors and windows can be open most of the year, it may be feasible. Otherwise, for most people, it’s not going to work.
3. The expenses of owning a small home are comparable to those of owning a larger home. The money that you save on utilities, mortgage and property taxes may well going towards renting storage space, renting a venue for gatherings, etc.   

If the romance of a small house appeals to you, consider the pros and cons carefully before investing your savings and taking out a mortgage on a bigger place.