36 posts
OK. Here's the idea.....
http://www.house-crazy.com/tiny-texas-houses/
I've decided to try a little something different. I'm exploring and researching this idea to live in a "tiny house". The reason, well, I just got divorced and I'm old with 2 children. So I decided to explore getting debt free and living moderate for a # of years and save fucking cash.
I'm of the opinion that cash and very little debt will give me a leg up on my fucked up situation. I've really decided to take drastic action to change my circumstances for the better. Change a negative to a positive. With the results being lots of cash saved, no stress about money. No way this will be a bad idea because I will be saving a shit load of money every month in damn near every way. It's just a matter of becoming accustomed to living in such small quarters. I'm guessing around a $15 to $30k investment that I pay cash for after selling my house. A ranch style 3 br 2 bath home is on the market for an average of 2.5 weeks in my area.
You thoughts, good and bad.???
thinking about selling my house, buying no more than 1 acre of land and living in one of these tiny houses for at least 5 to 10 years, and saving cash. I travel on the road anyway for work, so I stay in the house on weekends basically. I'm excited about it. Very different for sure, but the money saved will be extreme. Freedom from home payments, car payments, home repairs, just think about the money and time you will free up. It's a drastic change, imo. Should be an interesting ride, to say the least. ;D
I'd go sailboat/houseboat instead. same low square footage... easier to move. those little houses... maybe, but I'd have to build a storm shelter under it. wind over 25 mph would make me nervous in that doghouse! lol!
but yes, the idea to minimize, get out of all debt and accumulate wealth (please don't accumulate cash! buy things of value instead) is an excellent call. it's incredible peace of mind knowing that you owe no man a dime. well, except the county... you'll still owe them property taxes. if you do this, you'll probably be as pissed off about the entire concept of property tax as I am! heh. good luck to you, hope you get fucking rich!
the only "bad" is if you can't handle the lifestyle. if you can't live meagerly without feeling like a loser... it'll suck. I live extremely meagerly... and trust me, from time to time, it's not easy. but here at the monastic hermitage that is my life, it's not so frequent that the material world creeps into my psyche. especially since I got rid of my television set. even if you can't manage the super meager life... getting out of all debt will be a boon to you, highly recommended.
Is a Sailboat / Houseboat like a Mobile home on water? Don't put the boat in water and you can take more wind. LOL
I have been working on a cash only basis for a while. I still have a house payment though. But, I have downsized drastically in the expense department. I'm working my way toward a 7'x2'x2' box. LOL ;D
Hookbender — Jul 11, 2014OK. Here's the idea.....
http://www.house-crazy.com/tiny-texas-houses/
I've decided to try a little something different. I'm exploring and researching this idea to live in a "tiny house". The reason, well, I just got divorced and I'm old with 2 children. So I decided to explore getting debt free and living moderate for a # of years and save fucking cash.
I'm of the opinion that cash and very little debt will give me a leg up on my fucked up situation. I've really decided to take drastic action to change my circumstances for the better. Change a negative to a positive. With the results being lots of cash saved, no stress about money. No way this will be a bad idea because I will be saving a shit load of money every month in damn near every way. It's just a matter of becoming accustomed to living in such small quarters. I'm guessing around a $15 to $30k investment that I pay cash for after selling my house. A ranch style 3 br 2 bath home is on the market for an average of 2.5 weeks in my area.
You thoughts, good and bad.???
thinking about selling my house, buying no more than 1 acre of land and living in one of these tiny houses for at least 5 to 10 years, and saving cash. I travel on the road anyway for work, so I stay in the house on weekends basically. I'm excited about it. Very different for sure, but the money saved will be extreme. Freedom from home payments, car payments, home repairs, just think about the money and time you will free up. It's a drastic change, imo. Should be an interesting ride, to say the least. ;D
I'm sorry, I live in the Silicon Valley area, the idea of an acre of land being a small amount makes me laugh, and houses this small are all over the place, and routinely sell for half a million dollars. You'd have to give me a comparison that I can understand--where exactly are you starting out, how much of a downgrade spacewise is this?
Heck I have been living in a 400 sq ft park model mobile home since 1999. It was an upgrade from my Jayco 32.5' travel trailer and my Ford diesel pickup which I got in 1989 upgraded from a 24' Sunline Travel Trailer then before that an 18 foot Terry Taurus TT. I own the lot that it is on, I paid $20,800 for the lot in 1997, and $28,500 for the Park Model in 1999.
It costs me less than $350 a month to live here (everything was bought with cash so no payments) $127 for the association dues $575 a year in property taxes and the rest is my heating and cooling. The extra $50 a month (over the $300) is added monthly in my head for the new AC unit I had to buy last year at $6,308, which is fifty some bucks a month for the 10 years the AC unit is guaranteed for. All in all I can live here cheap. 24 hour security, gated and no one gets in here without permission from a lot owner.
http://www.htresort.com/happytrails/outside_home.asp
I am all alone on my street except for 2 other houses of the 35 or so on the street here, for 5+ months a year, and the other 7 months are a huge block party.
The only problem I have here is; I have to turn down my amps for those 7 months that the snow birds are here.
North Carolina. Probably find a acre for 3k to 10k. More than likely, 5K. I have a 1400 sq ft home as we speak. I'll be going down to somewhere around 200 to 450 sq ft. I owe 90K on my home, will sell for 125K easy. Financed for 30 years, had to, just got divorced, remember. $607.53 is my mortgage payment. Why do I want an acre? In case I go bat shit in this small dwelling, I can build a small house.
Doing this, I would take the cash, I did put 20% down, over payoff and buy the land, pick and ready me a spot, septic tank, elec, all that stuff, and live the dream, man.
I loose 90K worth of debt, and put 607.53 and month min in my savings account. Plus I don't pay all that interest. Way less electricity, water, everything. Hell, if the air conditioner breaks, trash it and get another one at walmart for $100 bucks. Plug and play baby. Gonna build it and a trailer to avoid any codes and shit, self insure it cause it won't ever be worth what I pay for it, and live. Damn near debt free as I can be. Exception of child support and kids stuff. Thats 90K worth of debt, gone, frees up 607.53 of cash a month. $7200 a year cash in additional savings and no costly house repair bill ever again. And I probably won't ever give a fuck again about any interest rates. ;D
Man that's a huge change for me.
This isn't really a new idea, it's just extreme downsizing. Google tiny houses and you'll get all the info you can handle. Check out some of the pics. Some are actually really cool looking. The real modern ones are killer, in fact. Also, check out yurts.com. Thats another idea I'm thinking about. Have to change some stuff on those but I think it's a damn cool looking way to live. I'm found of round. I get tired of all the squared off shit. Just a couple ideas.....
People around here will probably think I lost it. While they laugh at me though, I'll be smiling at my savings account growing like mad. I'd like to stay in one for at least 15years and save money. In that length of time, I'll have a Min of 100,000k cash in my savings. Just from this decision. Now, maybe that doesn't sound like much, but for a guy with 2 young children who at 48 got divorced, it's the only way to really save money, that I can see. I have 13 years of child support. Till my youngest is 18. Then the child support goes away as well. I'll be sitting good at that time and maybe try living on a boat somewhere. That's kinda my train of thought. I know something could come up and change my plans, but I can't predict the future so I'll just be optimistic and insistent on sticking with the plan. It could also come out better than planed too!!
Cavco Park Models http://parkmodels.com/
Mine looks similar to this http://parkmodels.com/home-series/malibu/
Thats neat. But I need to see how their built. I plan on building one just like a house almost. r13 insulation etc. I don't won't a $300 electric bill, that will defeat some of my purpose. But they are cool looking!!
Hookbender — Jul 11, 2014North Carolina. Probably find a acre for 3k to 10k. More than likely, 5K. I have a 1400 sq ft home as we speak. I'll be going down to somewhere around 200 to 450 sq ft. I owe 90K on my home, will sell for 125K easy. Financed for 30 years, had to, just got divorced, remember. $607.53 is my mortgage payment. Why do I want an acre? In case I go bat shit in this small dwelling, I can build a small house.
Doing this, I would take the cash, I did put 20% down, over payoff and buy the land, pick and ready me a spot, septic tank, elec, all that stuff, and live the dream, man.
I loose 90K worth of debt, and put 607.53 and month min in my savings account. Plus I don't pay all that interest. Way less electricity, water, everything. Hell, if the air conditioner breaks, trash it and get another one at walmart for $100 bucks. Plug and play baby. Gonna build it and a trailer to avoid any codes and shit, self insure it cause it won't ever be worth what I pay for it, and live. Damn near debt free as I can be. Exception of child support and kids stuff. Thats 90K worth of debt, gone, frees up 607.53 of cash a month. $7200 a year cash in additional savings and no costly house repair bill ever again. And I probably won't ever give a fuck again about any interest rates. ;D
Man that's a huge change for me.
This isn't really a new idea, it's just extreme downsizing. Google tiny houses and you'll get all the info you can handle. Check out some of the pics. Some are actually really cool looking. The real modern ones are killer, in fact. Also, check out yurts.com. Thats another idea I'm thinking about. Have to change some stuff on those but I think it's a damn cool looking way to live. I'm found of round. I get tired of all the squared off shit. Just a couple ideas.....
People around here will probably think I lost it. While they laugh at me though, I'll be smiling at my savings account growing like mad. I'd like to stay in one for at least 15years and save money. In that length of time, I'll have a Min of 100,000k cash in my savings. Just from this decision. Now, maybe that doesn't sound like much, but for a guy with 2 young children who at 48 got divorced, it's the only way to really save money, that I can see. I have 13 years of child support. Till my youngest is 18. Then the child support goes away as well. I'll be sitting good at that time and maybe try living on a boat somewhere. That's kinda my train of thought. I know something could come up and change my plans, but I can't predict the future so I'll just be optimistic and insistent on sticking with the plan. It could also come out better than planed too!!
So, to me, $600 a month is like my cable, phone, internet, and electric bill. The idea that that is your house payment blows my mind.
Micro apartments are all the rage in San Francisco, 200-400 square foot apartments. But they cost around $1800 a month rent. Mind you, this is one of the most expensive, and highest-paid areas to live in the country.
Hookbender — Jul 11, 2014Thats neat. But I need to see how their built. I plan on building one just like a house almost. r13 insulation etc. I don't won't a $300 electric bill, that will defeat some of my purpose. But they are cool looking!!
My electric bill is $165 on the hottest months of the year less than $50 on the least cold/hot months (early spring and late fall) All my climate control is from the AC/Heat pump. The newer models are 1/3rd less per month.
Just get a book on framing/carpentry. Once you understand the process with a little study, building is fairly straight-foreword. 2x6 walls 2x10 floor and ceiling joists, foam insulation in the walls and floor/ceiling.
I was a bricklayer/stone mason/concrete finisher/tile setter so I was in construction most of my life. Building is relatively easy once you lay it out right. The layout is the key. You can probably buy some plans from some of those little home builders. Bet you can build it for less than 30K if you hire some subs, with appliances.
Well Charger, it's all relative, right? ;D
I guess people over there get paid more, except butchers. So, shit brings mo money based partly on that????
You could probably do in Alabama what you do their, cut your pay in half, and still live like a king. ;D
Sounds like a good idea to me. We stayed relatively small. We have a detached bungalow and our mortgage will be fully paid up June next year. I always fancied a much bigger property but always resisted it because I don't want to be in debt forever. I never buy anything on credit, everything is paid for up front. The freedom this gives you is amazing. Everyone seems to think that getting the biggest mortgage they can and getting into as much debt as they can is the way to go. Not for me. It's much better to have loads of money in the bank than it is to be paying it all to someone else in interest ! Get out of the "my dick's bigger than yours" competition and your whole life will be so much happier and content. Being free from debt is completely liberating. When all around you would lose their house if they lost their job, you would be just fine and could survive on part time work etc if you had to. I know a few people who have lost everything during this recession because they went too big. All seemed easy for them at the time as they thought their jobs would last forever. When I was made redundant 4 years ago I was able to start my own business and live off my savings for the first 6 months to a year whilst the business grew.
Go for it , best decision you will ever make
Jon — Jul 13, 2014I don't want to be in debt forever. I never buy anything on credit, everything is paid for up front.
Aaaaaamen. I hate payments. If I can't pay cash, I don't buy these days. Everything I own is paid for, and was when we bought it. (Except my 2003 Corolla we financed that when I was working back in 2003, but paid it off in 18 months time, doubling up on the payments).
Jon — Jul 13, 2014Sounds like a good idea to me. We stayed relatively small. We have a detached bungalow and our mortgage will be fully paid up June next year. I always fancied a much bigger property but always resisted it because I don't want to be in debt forever. I never buy anything on credit, everything is paid for up front. The freedom this gives you is amazing. Everyone seems to think that getting the biggest mortgage they can and getting into as much debt as they can is the way to go. Not for me. It's much better to have loads of money in the bank than it is to be paying it all to someone else in interest ! Get out of the "my dick's bigger than yours" competition and your whole life will be so much happier and content. Being free from debt is completely liberating. When all around you would lose their house if they lost their job, you would be just fine and could survive on part time work etc if you had to. I know a few people who have lost everything during this recession because they went too big. All seemed easy for them at the time as they thought their jobs would last forever. When I was made redundant 4 years ago I was able to start my own business and live off my savings for the first 6 months to a year whilst the business grew.
Go for it , best decision you will ever make
Just wondering if I can handle such a huge change of space. I think I can, but who knows. I'm going to try to look at, and go inside, a few of these small type house things and try to get a feel for the size of the place.
On the house thing, you always hear stuff about how much money people made when they sold their home. I've never met or knew, anyone that made more than 10K when they sold their home. And, that didn't include the money they put in it while living there. I just don't think homes were ever a great investment. Better than renting for sure. But it's more like a savings account. But you don't save anything because of the interest.
I kinda wish I would have done this years ago. Pay cash for a place and save money in hopes of buying a larger home when you could in fact, pay cash again. I can start that now I guess. Out of $600 I pay in mortage every month, I think $130 bucks goes to principle. Thats pitiful.
Hookbender — Jul 14, 2014[quote author=Jon G link=1405042943/0#12 date=1405240480]Sounds like a good idea to me. We stayed relatively small. We have a detached bungalow and our mortgage will be fully paid up June next year. I always fancied a much bigger property but always resisted it because I don't want to be in debt forever. I never buy anything on credit, everything is paid for up front. The freedom this gives you is amazing. Everyone seems to think that getting the biggest mortgage they can and getting into as much debt as they can is the way to go. Not for me. It's much better to have loads of money in the bank than it is to be paying it all to someone else in interest ! Get out of the "my dick's bigger than yours" competition and your whole life will be so much happier and content. Being free from debt is completely liberating. When all around you would lose their house if they lost their job, you would be just fine and could survive on part time work etc if you had to. I know a few people who have lost everything during this recession because they went too big. All seemed easy for them at the time as they thought their jobs would last forever. When I was made redundant 4 years ago I was able to start my own business and live off my savings for the first 6 months to a year whilst the business grew.
Go for it , best decision you will ever make
On the house thing, you always hear stuff about how much money people made when they sold their home. I've never met or knew, anyone that made more than 10K when they sold their home. And, that didn't include the money they put in it while living there. I just don't think homes were ever a great investment. Better than renting for sure. But it's more like a savings account. But you don't save anything because of the interest.
You have to buy in the right place. Homes everywhere are not a great investment--for example, Las Vegas was never a good place to buy a home. Homes in some places are fantastic investments. My mother in law has made as little as 50k and as much as 645k, that one was a 250% increase. 10k seems low, maybe it's higher as a percentage though, maybe you are talking about a 50k home that sold for 60, in which case, that's 20%--making 20% on an investment is pretty damn good.
I've never looked upon a house as an investment for making a profit at some stage in the future. My outlook on it is simply to get to a stage in life where the house is completely paid for so there's no more monthly payments, which for me is next year. It just gives great peace of mind and the thought that no matter what happens to your income, once your house is paid for no-one can take it away from you !
My sister bought her house on an Island on the Jersey Shore for three grand, they lived in it for vacations for 30 or more years, then remodeled it for a hundred twenty five grand ten years ago, and it is worth a minimum of $750,000. My other sister lives in back of her on the next street, she paid twenty grand in the early 80's lived in the house till 2013 tore down the old house and put in a 5 bedroom 4 bath house up on stilts for $325,000. Her house is worth $850,000 easy. Location, location, location.
In some places real estate was a real good investment. My gym buddy had a house in San Diego area, he paid seventy five grand for it and sold it for a hundred seventy five grand, 27 years ago, the house now is probably worth $500,000. Location, location, location....
Yep. My parent's house in San Diego was purchased for $29k in 1962, I took over all payments around 1987 when it was worth about $170k. I sold in 2005 for $565k.
I bought my condo in Irvine in 2001 for $164k then sold it two years later for $348k. In both cases, I probably sunk about $30k or so into some remodeling.
Ok. Now I have met people that have made over 10K on a sale of a home. Now would get on with it for christ sake. ;D ;D
I don't like this thread anymore. Blahhhh Blllaaaaaa.... >:( >:(
( ;D)
Although I didn't buy my house with a view to investment, the passage of time has been kind. My house is worth around £160,000 ($256,000) more now than when I bought it, but it's all relative to prices now.
Jon — Jul 15, 2014Although I didn't buy my house with a view to investment, the passage of time has been kind. My house is worth around £160,000 ($256,000) more now than when I bought it, but it's all relative to prices now.
Sell that bitch and get a tiny house with me. you'll be rich. ;D
Here is a way to gauge what the profit margin over time really is. When I was a kid in the 50's 60's I could buy a candy bar for five cents now the same thing costs a dollar in the 60's I could buy a gallon of gas for about thirty cents now it costs $3.59 here in Arizona. So what a ten dollar bill would buy back then costs a hundred bucks now. I bought my first new car for $1,800, a 61 Chevy Impala convertible. I bought my first new Chevy van in 68 for $2,300 or so. That same van today would be $34,000. So all that said, for what you could get for a dollar back then, costs ten dollars now. It is all relative except if I was making the same buying power today as I was when I was first a journeyman bricklayer I would make a hundred twenty grand a year. But the bricklayers are only making from $20 to $50 an hour depending where you are in the country and whether you are union or not.
So hook you are more right than wrong. Only a few dollars are made over time when you think of those dollars in the current vs the old buying power.
Yep (again). Then consider that most people carry a mortgage for a long time and, most, will end up costing you three times the price of the home after you pay all the interest.
My goal for the next house I buy is to pay for it completely upfront. Of course, at the moment, I'm not sure I could afford a dog house, but that's the goal anyway. I have zero faith in banks now.
DBM
They say on the site they are intended for seasonal use etc. But, you live in this? How is it?
Hookbender — Jul 16, 2014DBM
They say on the site they are intended for seasonal use etc. But, you live in this? How is it?
There are two of us, so it is a bit tight, but I like it, it is plenty comfortable, my AC is a little high in summer compared to the larger more well insulated units (I have 2x4 walls the new ones have 2x6 walls and better insulation)
A "park model RV" is what it is called so it can fit into an RV park. Which is usually only part time and usually only allows less than 400 SQFT on an RV lot. I live in a place called Happy Trails Resort. But you can have these homes on a regular lot also. As long as zoning allows it.
Also, I was selling at the time, camera is looking north.
I have a total of $60,000 in the whole thing $20,800 for the lot, $28,000 for the Park Model and another 12 grand in the awning/shed. I paid cash at the time of purchase on each unit. The Lot in 1997 the house in 1999, the shed awning several years later. I might be able to get $80,000 at best and $75 grand at worst. At one time I could have gotten $115,000 before the crunch came down at the end of GW Bushes presidency.
desertbluesman — Jul 15, 2014Here is a way to gauge what the profit margin over time really is. When I was a kid in the 50's 60's I could buy a candy bar for five cents now the same thing costs a dollar in the 60's I could buy a gallon of gas for about thirty cents now it costs $3.59 here in Arizona. So what a ten dollar bill would buy back then costs a hundred bucks now. I bought my first new car for $1,800, a 61 Chevy Impala convertible. I bought my first new Chevy van in 68 for $2,300 or so. That same van today would be $34,000. So all that said, for what you could get for a dollar back then, costs ten dollars now. It is all relative except if I was making the same buying power today as I was when I was first a journeyman bricklayer I would make a hundred twenty grand a year. But the bricklayers are only making from $20 to $50 an hour depending where you are in the country and whether you are union or not.
So hook you are more right than wrong. Only a few dollars are made over time when you think of those dollars in the current vs the old buying power.
A few dollars is also relative I guess. My parents bought a house for 17k in 1972 in what would become Silicon Valley. The value of 17,000 from 1972 to 2014 ranges from 72k to 220k. The house is now worth 1.2 million according to Zillow. So even saying the highest value of 220k is the "real" inflationary increase from 1972-2014, the house is still worth 5.5x more than that. That's 12% appreciation/year, at the worst.
Real estate, bought in the right place, is a great investment. However, a lot of buying happens where it's cheap (a la Las Vegas), and there's no guarantee that a cheap area will become expensive over time.
Hookbender — Jul 16, 2014DBM
They say on the site they are intended for seasonal use etc. But, you live in this? How is it?
He lives in Arizona, the "seasons" are hot, and hotter.
Yeah, I know that. I'm talking about how the RV holds up to everyday living in it for years. Again, the site says they are basically intended for seasonal,or recreational, use. that would suggest to me that they aren't built well enough to be considered for everyday living.
Hookbender — Jul 16, 2014Yeah, I know that. I'm talking about how the RV holds up to everyday living in it for years. Again, the site says they are basically intended for seasonal,or recreational, use. that would suggest to me that they aren't built well enough to be considered for everyday living.
It freezes here some nights in winter. My house is built just like a stick built home, 2x4 walls, 2x8 floor joists, regular wooden sheathing. Roof trusses. The only difference is; it is on a chassis like a big truck and on pillars under the house on top of a concrete slab. There are axles under the house although they are disconnected from the frame. It is simply a small mobile home. The wishbone hitch is still under the house too. I have lived in it for 15 years and it has many more years of life in it. They have to say seasonal living in their brochures, because if they claimed year around living, they would not qualify for Park Model RV status, they would then be mobile homes, and not for use in RV parks. There are park model mobile homes in this community 20 years older than mine which is a 1999. Mine is as solid as the day they brought it in. Although I will be needing a roof because the one I got was only a 15 year. I did have it coated so I may get another 5 years out of it because the UV is not as damaging to the shingles with the coating. I only paid $28,000 for the house. If I was renting for those 15 years I would have paid out $175,000 in rent, 15 years x12 months x$750 month/rent. So if anything I owe the park model not the other way around. I also traded in a used Jayco Travel Trailer which I lived in for 10 years, I paid $15,000 for it. If I was renting I would have paid out a hundred grand for those years of which half would have been lot rent. So I got $8000 trade in so my park model only cost me 20 grand out of pocket. It was well worth the money truthfully.
Besides you could probably build one yourself for well under the 40-50 grand they sell for these days in Az, and probably some less in the southeast. If you banged the nails yourself, a house like this one would cost you less than 25 grand finished, with plumbing and electrical subs in that amount. Maybe even less.
By the way the price I paid includes the plumbing, electrical, and appliances. It is simply a small house. The only difference is; it is not on a foundation. it is on little pillars on top of a concrete slab, and held down to the ground every 6 feet or so with straps on each side of the frame.
