PF Weekly grab a brew #37: How small is too small of a house?

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Tiny House Sale Is Not Surprising

Many of us all have our dream home purchased in our minds before we even set foot on the pavement to search for the home that has it all, or at least what we need. Depending on where you live your dream home might be a distant dream because the price tag on most homes in major cities in Canada are just too high for many to handle.

Even in smaller communities we can see house prices are still higher but jobs are far and few for most who opt to commute just to bring in the money to live comfortably in a decent sized home.

If you are out of school and have lots of OSAP and other debts to pay off it may be a long time before you even get into the real estate market. It’s tough enough trying to pay back any debt that most people carry let alone saving for a down payment on a home that will cost them an arm and a leg these days. Sometimes I wonder how we were able to get into the real estate market so fast living in the Greater Toronto Area but timing was on our side but that’s not always the case for everyone.

Prices of houses seem to be moving up still and although interest rates in Canada are still low I also believe we will see them creep up over time. When I read about the tiny house in Toronto that sold for $165,000 it’s not surprising at all.

I bought my first home at 21 and it was a flat which I later shifted and sold up to buy a small home about 3 times the size of the tiny home. Even though I didn’t have a big house I made the space work for me and when I sold it I made back my cash many times over. I believe there will always be a buyer.

Tiny house design

The tiny home is only 230 sq. feet but I wonder how long it will be before we start to see how many tiny houses contractors can fit on a lot to profit the most money from. If you drive around almost any community you will see that homes built between the 50’s -80’s and into the 90’s have relatively decent sized lots but after that they got smart about it.

I often find that it only takes a few people to start the movement of a new craze and I think the tiny home will become something of a craze for many. I’m sure designers are already working on plans to create beauty in these small spaces and figuring out ways to build a small home so that it is optimal for the home owner yet affordable.

New subdivisions that are being put up faster than we can say build are squished together so companies can squeeze every last penny out of the homeowner and get the most bang for the land they own. We see bigger homes these days on tiny lots and they don’t come with a cheap price tag either.

We don’t have a huge lot on our property and our house was built-in the 90’s right when they started to build the homes closer together in our area. Initially when we bought we didn’t think we’d care but over the past few years we found out we do care. We don’t want to have to shake hands with our neighbour in the morning when they leave for work because that is how close the homes are on our street.

Tiny houses for sale

If home builders can get away with the ability to build bigger homes on smaller lots and make a fortune why not build small homes on tiny lots and still make a fortune like the tiny house in Toronto which has only one bedroom and air conditioning. I’m sure for the person with excellent organizational skills and the creative touch they can make this one bedroom home a space that has everything they need. I’m betting this won’t be the last of the tiny houses for sale as the small house movement is becoming an upwards shift I think we will continue to see.

The home will be used as an investment and I don’t see it ever being vacant for long because of the attractiveness of having the outdoor space and it being a detached home rather than an apartment or bedroom rental in someone else’s home.

The house the size of a “tool shed” is how it’s described was used as a retreat for the previous owner which isn’t shocking given the prices of Toronto homes. I think we will start to see homes getting smaller and subdivisions of little homes being constructed for those people who just want to own a piece of property without the huge price tag. Personally I don’t mind having a small home but I’d like to have some property and garages are essential for any man in my opinion. I’m an easy guy to please though.

Could you live in a 230sq. foot home and would you buy one instead of renting if you lived in a major city like Toronto or Vancouver?

PF weekly reading line-Up

If you missed any of the posts from the week you can check them out right here.

Top Recipe

Every day Food Bloggers from around the world pass by my other love the Free Recipe Depot Facebook page to share a daily recipe which I share with my fans. Each week I pick one of those recipes to share with the Personal Finance world and this weeks TOP RECIPE goes to……. Bunny’s Warm Oven for this gorgeous Apple Dumpling recipe. 

apple-dumpling

Have a great week everyone and I hope you enjoyed this edition of my Personal Finance Weekly Grab a Brew #37: How small is too small of a house?

Join me again next Friday when I do it all over again.

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