Increase Property Value Instantly
For an investment of $31,130, you can add a minimum of $46,130 to your property’s value, and additionally see hundreds of dollars on a monthly basis. This miracle is accomplished through the innovation of the tiny home. What’s more, you can easily build it yourself.
Breaking Down The Numbers
A backyard cottage of 240 square feet, including a porch, will cost you approximately $22,130 to build. You can save extensively if you build it yourself, and this is easy to do in most cases. According to Cottage Depot, backyard cottage designs come in “…kits [that] include a list of virtually every part involved in the project, including where to order it.”
Such floor plans allow ample space for a washer and dryer vertical unit, and include a bath, toilet, desk, kitchenette, and living/sleeping area. If you install a 3.1 kWh solar system, which, averaging Watt-cost at $1/per, including professional installation, and a good “energy sink” (battery), will cost you $5k or less, you’ll increase property value by $18,000.
If you really want to double down on value, you can also install a residential wind turbine that produces 1 kWh of electricity for about $4K. You’re up to $31,130 at this point, with the value of the tiny cottage at $46,130. Here comes the interesting bit.
Once you have that backyard properly installed, you can lease it out for $500 a month and bring in $6k a year, meaning in 5.3 years, you have the whole thing paid off with a single tenant! Choose wisely in tenants, and property value won’t just be retained; it will increase.
Got a mother-in-law who really needs her own space, or a millennial child who can’t get their act together? Backyard cottages offer the perfect solution. Or you could just have your own private getaway—a home away from home that’s still at home. These properties work great as a poker pad, rumpus room, or literal guest house.
There’s no hard and fast rule limiting what you charge for rent, either. Outfit the tiny cottage well enough, you could easily get away with charging $750 a month, all utilities included. That would bring in $9K a year, completely paying off the construction costs within 3.5.
Top Of The Line
This couple downsized from a 900+ square foot home to a 240 square foot home. Something else worth considering is that many tiny home expenses are calculated using top-tier supplies and amenities. But repurposing things like guitars and drums, as this couple did, can increase individuality, decrease expenses, and ultimately provide unmatched, unique property value.
One of the neatest things about the tiny home movement is that you can either build a luxury property for exceptionally cheap, and one which retains value, or you can build a functional property that is even more cost-effective, and allows you greater latitude for growing financial expansion.
You don’t need a lot of property, either. For a tenth of an acre, or around $300 depending on where you’re located and what you can negotiate, you can have a tiny home, parking space, porch, and even a garden.
Thinking Small May Be Thinking Big
At $750 a month, you’ll pay $9,000 in a year for nothing if you’re renting. You can get about the same living space, own that living space, and sell it for even more (provided you take good care of it) when it comes time for your family to obtain larger premises. This is superior to renting, because money spent represents a sustainable investment; whereas rental disposes of your spending entirely.
If you haven’t looked into tiny homes, backyard cottages, or other cost-effective (and spatially efficient) modern architectural trends, you may want to take a moment and consider your options. Done correctly, such an avenue of egress could yield continuous dividends.Author Bio:
Kevin Bennett
Title: SEO Marketeer
Kevin is a super-connector with Towering SEO and Youth Noise NJ who helps businesses find their audience online through outreach, partnerships, and networking. He frequently writes about the latest advancements in digital marketing and focuses his efforts on developing customized blogger outreach plans depending on the industry and competition.