What you need to know about the tiny home trend

The tiny home movement has gained significant traction over the last few years, appealing to individuals who are seeking the opportunity to enjoy greater financial freedom, as well as to investors who notice the earning potential of these pint-sized dwellings.

Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, explains that the container home trend has unlocked more affordable options within the local property market. That being said, he also notes that buyers will still need to afford the cost of purchasing a plot of land and this can make these kinds of purchases less attainable to those who are searching within the affordable housing sector.

“Depending on the area, it might be more affordable to purchase a plot and add a tiny home than to buy an existing property. This can offer first time buyers a slightly more affordable way to enter the housing market, but a buyer should make sure they fully understand all the costs before going this route,” Goslett warns.

“The container home does also offer investors a more affordable opportunity to add a passive income stream to their property portfolio. But it’s not only for investors. Owing to their size, a homeowner on a freestanding property might even have the space to add one onto their primary residence, which could be rented out to generate income and help them pay off their home loan faster,” says Goslett.

Before going ahead with this concept, it is important to find out about the building regulations and permissions from your local city council. While some areas embrace tiny homes as a viable housing option, others may have restrictions on minimum dwelling size or zoning requirements. Making sure these homes comply with building regulations can also be more costly than buyers might realise.

Road access is another thing homeowners forget to check when investigating this as an option. If the tiny home is pre-built or modular and needs to be craned onto the property, then you will need to make sure that there is sufficient road access and if you need any special permissions for the crane to be on the road.

With property prices increasing each year, the tiny home trend is redefining the traditional notions of housing and prioritising experiences over possessions. Whether you’re a buyer who is drawn to the idea of simplifying your life or you are a homeowner who is seeking an affordable way to generate passive income, the tiny home movement offers a compelling alternative well worth exploring.

“Depending on the quality of the build, these homes will also stand to appreciate in value over time, which makes them a fair long-term investment strategy. It all depends on the area and the demand. If you are curious to learn more about how buyers feel about container homes in your area, speak to your local RE/MAX Office for some free insights,” Goslett concludes.

Writer: Kayla Ferguson