'House poor' - When you have a payment to your home that is so high that it takes up all your income and you can't do anything else in life.
Many couples, families and single adults can relate to this term, so many are downsizing and saving for their financial future and to save their relationships! How hard is it to date when you can pay for dinner, a movie, or even a simple card for your anniversary? Hard! It's no fun to never get flowers, to always have 'picnic night' or watch the same old DVD's. The monotony gets old and the relationship starts to tire, you get nit-picky at each others, there is lack of respect for not earning more, regret, anger, stress, and financial tremors that shake your core.
How can downsizing help with this huge impact? Well it is taking America by storm and it is coming in all shapes and sizes. Instead of going into deep debt and buying bigger, with longer mortgage terms or double mortgages, people are opting for a simpler way of life.
1. Tiny House
The tiny house is not only mobile (can fit on a long bed trailer) but it is customizable and eco-friendly. It leaves a smaller footprint on our environment, can house a family quite comfortably and can be bought outright in cash, financed for a fraction of the time a full house takes, or can be built in stages to pay off as you get the income.
Tiny houses usually have lofts with small stairs, ladders, or a stacking storage system to get to the top level. The kitchen is fully functioning but usually has smaller appliances and are energy efficient. Many tiny houses have small living spaces, a small bathroom with an RV toilet or a compost toilet which are both clean and easy to dispose. They can be fully solar powered, working on a battery and they can be put on any RV space, land, lot or back yard.
Average Cost of a Tiny House= $13-$65K depending on the size, how equipped it is and the builder according to Tiny House Talk. See a house plan >
2. RV, Trailer or 5th Wheel Living
The traveling house has been around for a long time, but only in recent years has it grown immensely in popularity with younger families, couples, and single working adults. The freedom to rig up your house and hit the road is very appealing with new technology and opportunity to work from home or on the road. Children can easily by 'road schooled' and the travel to monuments, state parks, museums, and other educational 'hands on' places offers the chance to have a more well-rounded upbringing.
With the help of Pinterest and Instagram, books, blogs and YouTube, these RVers are spreading tips on how to renovate, travel, live and eat. The average RV that is bought for full time living is usually 30-40 feet in length and has slide outs for extra width. These cozy homes offer beds from bunks to king size, travel size to full size kitchens, the latest technology, solar panels, multiple bathrooms, tons of storage, and much more depending on your budget. These homes can travel all over the US or sit comfortably in a park or piece of land.
Average Cost of an RV= $1-$100K depending on the size, how equipped it is and where you buy it. From Craigs list vintage rigs to the newest full rigs you could spend very little to a whole lot depending on your comfort and living style. However average price to get a decent size in great condition is $12-$25K.
3. Modular Homes
The modular or 'mobile home' of yesterday is changing and growing popularity with the technology advances in building materials, beautiful front construction and space offered. These homes are earthquake and wind sturdy and hold up better in natural disasters than stick houses. They can come in premade kits at a less price or you can customize your home for more. You can add porches, wrap around verandas, fireplaces, granite countertops, soaker tubs, you name it.
These homes can be smaller to fit in a mobile home park or vastly large to lay out on a piece of land. They don't take long to complete because they are mostly already put together, they last long and they cost a fraction of the price to upkeep and purchase.
Average Cost of Modular Home= $50-$100 per square foot. This is with the base price of the house, customizations, set-up and build. It doesn't include land price. Average base price of a modular home is $30-75K
With the average home price in the US being $200,000.00 and the average rent price being $1200.00 per month, these smaller options can free up financial stress and offer an alternative to being in debt and having your relationships fall a part. Sometimes great change brings great opportunity! Open your mind and look into it, maybe you will be the next featured 'tiny house' on HGTV!