In 2019, the trend of tiny homes is growing. It’s easy to see why – they are more eco-conscious, affordable, and offer a more sustainable way to live. However, we note the government is not clear on whether caravans are considered a dwelling or a caravan.
The total costs for building a tiny house are variable – for a DIY build, a tiny home could be as little as $35,000 while a custom-made tiny dwelling with more luxurious features can be up to $150,000. Even the most luxurious tiny house is still cheaper than any property you could purchase in a capital city or regional centre.
Sustainable housing is a growing movement but the legislation surrounding them is still unclear. Financing a tiny home is also difficult, as lenders often stipulate that a home must be fixed and not portable in order to be financed and – as discussed in our blog on studio apartments – need to be a minimum size.
There are some finance options available if your heart is set on a tiny home. If you already own the land that your tiny home will be built on, you could access equity from that property. Otherwise, an unsecured personal loan could be considered – it is important to remember that interest rates and repayments will be higher as these loans range from only one to seven years.
Motorhome loans are also an option, and they generally require a 20% deposit but are paid off over a shorter period of 10 – 15 years. Making sure your tiny home meets all the safety and road requirements of any other motorhome will increase your chances of being approved.
Tiny homes are still an excellent idea to investigate for starting out in the market or downsizing, especially if a cost-effective and environmentally friendly lifestyle is important to you. You can reach our Customer Success team via phone at 1300 403 204 or message the team at https://smarthomedeposit.com.au/contact-us.html– we can help you make your tiny home dreams a reality!