The tiny homes phenomenon started in the late 2000s. The United States was in the midst of a real estate crisis and Americans were looking for a way into homeownership without losing their shirts.
Since then, numerous businesses and people have embraced the concept around the world. Whether they are mobile (on a trailer) or not, these 100 to 300 square feet properties have won the hearts of Quebeckers.
Are you also tempted? Here is a list of the pros and cons so that you can make an informed decision.
ADVANTAGES
Affordable
The purchase price of this type of property is a fraction of that of a regular house. When self-built, a homeowner may only have to invest $20,000. You should know, however, that a number of companies offer construction service. Their prices fluctuate between $50,000 and $80,000, and this sometimes includes the plot! These homes are also inexpensive to heat: the sun’s rays coming in through the windows is enough.
Eco-Friendly
The people who opt for tiny houses are often motivated by a desire to reduce their environmental footprint. First, such properties require little building material. Furthermore, they can be built using recycled materials such as old containers or an old unused shed. Finally, these properties do not require that a large tract of land be cleared to accommodate them, saving trees!
Practical
When well designed, tiny homes are marvels of ingenuity. Every centimetre is cleverly optimized. They often contain movable sections, hidden storage areas and furnishings that can be modified to fit the needs of the occupant. Also, their small size makes them easy to redecorate or renovate. Plus, those that are built on wheels are convenient for travel as they can be used as trailers.
Additional Housing in Big Cities
We know that in large cities like Montreal, Vancouver or Toronto, there is not enough space for everyone who wants to live there. Not to mention the exorbitant prices of homes. The arrival of tiny houses could be the answer. Many of these affordable properties can be constructed on a piece of land that would normally only hold a single house. Moreover, it is a fact that older properties come with large plots; the authorities could buy back unused parcels for the building of these smaller homes.
DRAWBACKS
Will they increase in value?
This is a recent phenomenon, which is why it is difficult to know if buying a tiny home is a good investment. Experts differ as to this question. Some believe that their popularity will, in a few years, make them as desirable as a traditional home, but others contend that these properties won’t really increase in value. Additionally, it would seem that tiny houses built on trailers (for ease of mobility) could actually decrease in value, just like for a car or a camper because of the rust that can accumulate. Furthermore, a home’s price is in part determined by its plot which appreciates in value over time; yet, tiny houses on wheels come with no land. For these reasons, this type of property may be difficult to resell.
Some Municipalities Don’t Allow Them
Before buying or building your tiny home, make sure you can legally occupy your chosen location. In fact, if you opt for a tiny house on wheels, most municipalities categorize them as a trailer; consequently, they cannot be lived in year-round. The rules are changing, however, as there is a travelling tiny home festival in Quebec that is attracting more and more fans. The city of Lantier, in the Laurentides, has developed an eco-residential zone for building these types of houses. The municipalities of Sainte-Brigitte-de-Laval and Sherbrooke have also taken this direction. Mirabel may soon follow their example. Contact your municipality for more information!
A Limited Social Life?
This type of property isn’t for everyone. Some people start to feel claustrophobic at the mere idea of having to stay is a narrow space or get bored looking at the same four walls. And inviting friends over can be quite a hassle … not to mention wanting to live with a partner! The lack of personal space can certainly lead to friction.
No Access to a Mortgage?
You should also know that a financial institution may deny you a mortgage. The total amount being very low, banks usually prefer to make loans at higher interest rates. Future homeowners must therefore look to other solutions such as a personal loan or a line of credit. This is not always straightforward!
So, is this type of property right for you?
