The Austin-area housing market’s declining inventory and sales trends are creating an increasingly competitive housing market across all prices. Homes are selling faster than we can list.
Do You Watch Tiny House What Do You Think
Have you ever watched Tiny Houses on TV? Pretty interesting if you ask me considering my husband and I have 4 grandchildren and my mother and her twin sister living with us. This seems like such an awesome idea for those empty-nesters that are looking for something affordable and allows the luxuries that may fit their lifestyle or even for those newleyweds that don't need the "3 bedroom/2 bath" home just yet! Tiny houses are considered 1,000 square feet or less and are often on wheels! To me, 1,000 sqft or less for my family means a cabin in the woods which I definitely enjoy for a weekend but not so sure we would survive long-term! I need my "me " space! I have been amazed at what some people can do with such small spaces especially when I began searching for an efficiency apartment for my mother about 5 years ago.
You might ask yourself, "What is a Tiny House?" Did you know there is a Texas Chapter for the American Tiny House Association? Although there isn't a true definition of a Tiny House, most builders consider anything less than 1,000 square feet usually on a trailer, an 8' x 16' trailer! The trailer might be longer but normally is only about 8' wide. Here's an industry you might considering jumping into, building trailers just for Tiny Homes or even building Tiny Homes! Who is the target consumer for these homes? Well, if you are from the Austin, Texas area you definitely realize that the real estate market continues to soar. As many Millennials finish college with a lot of college debt, they are forced out of the market for a single-family home; therefore, pushing them to rent at astronomically high prices! These Tiny Homes might just be a great jumping off point for those wishing to "own" their own home! The other target market is those 50+ folks on a fixed income or downsizing! The key is AFFORDABILITY!
How can you purchase a Tiny Home? With this "niche" being new to the market, lenders are a little wary about providing tiny-home financing so you might consider paying cash or out of your retirement account. There are a few creative options available too: apply for a home-improvement loan or project loan on your local hardware store, apply for a recreational vehicle loan since it will be on wheels, or get a personal loan from your local bank. Your success may just be in the verbiage you use to request the money!
The next consideration would be insurance. Who can you get insure your Tiny Home? That might have to be done on a State-by-State basis as there aren't any building standards in place for tiny homes and if it's on wheels you have to consider if you insure it in Texas but move it to Colorado, that coverage may not carry over to the new "landing" ground. So, what if you can't get in insured? Are you willing to take the risk on your own? You might be able to set aside a certain amount each month for this purpose depending on how extravagant your Tiny Home may be.
You need to also considering zoning laws and restrictions when contemplating a Tiny Home. Many of the laws are in place through your local city so be sure to research that prior to investing in a Tiny Home.
One of my colleagues recently posted a survey on her Facebook page inquiring about who might be interested in a Tiny Home purchase. From the responses, it seems many people were more apt to invest in an RV rather than a Tiny Home. I guess it all depends on your goals!
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As I visit with people and/or overhear conversations, there seems to always be the question of when will this market turn? Not only when it will turn but will it be a repeat of the bubble we saw in