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 prioritizing 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,” says Goslett.
READ: Local property market ups and downs and tips for buying a home
On May 25, 2022, an insightful article was published, offering valuable information, featuring Ana Roberts of Just Property Upper Highway, and Graham Ross of Just Property Blouberg, says that another great benefit of downscaling is that small spaces require less furniture - a few great statement pieces allow for simple, minimalist décor and a beautiful, welcoming home at a fraction of the cost of furnishing a big house. And the cleaning is a breeze!
Less clutter equals less stress, and isn’t that what we are all looking for now?
Tips for cosy-home hunting:
Location, location, location - You want to remain close to your family and friends, and have ease of access to stores and other amenities such as doctors, hospitals etc. Narrow your search to areas that tick these boxes.
What are your deal breakers? Does the home offer the main assets that are important to you, for example, a good kitchen, nice family space, shower etc?
Current wants vs future needs - If you are downsizing because the children have moved out and you are getting older, consider a single story with the ease of access rather than a property with stairs that may cause a problem later.
Growing pains - Will you be able to handle the upkeep of a big garden, or is it time for something smaller that is more manageable? Will your pets cope with a smaller space; is there somewhere nearby where you could walk them?
Fit for purpose - Will your favourite furniture fit in the new space? Make a list of every piece with which you can’t part. Take measurements. Then take a tape measure with you when you start narrowing down your list of potential new homes.
Storage war - Is there enough cupboard space in the bedrooms and the kitchen? Do you need outside storage too?
Peace of mind - Check the security features of each property you visit. Find out how safe the area is and what security is available. Ask the neighbours, chat to the local police, and phone a security company that focuses on the neighbourhood.
Guest appeal - Consider how many bedrooms you will need going forward - if your kids have all moved out of home, you may only need one spare room for when they or your friends come to stay.
Paper trails - Remember to ask for compliance certificates, even those that aren't required in your province (for example, gas installations and solar geysers should come with a compliance certificate - if something goes wrong and you don't have one, your insurers may refuse to replace the geyser, or cover damage caused by a gas issue).
Complex questions - If you are moving into a complex or an apartment, be aware that there may be the added expense of levies, clubhouse fees and/or security. Ask about historical escalation rates and request a copy of the body corporate rules (if applicable.)
Ask your neighbours if there are any noise issues, does sound travel through the walls and ceiling? How old is the plumbing, the lifts etc - upgrading such items is very expensive and you’ll have to contribute. What parking is available for guests?
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