During the pandemic, we saw record low mortgage rates. In 2022, mortgage rates are rising. Nevertheless, buyers continue to face housing markets across the country that CNBC describes as “red-hot.”
In that same post, CNBC reports that supply in housing has jumped because sellers are worried about the markets cooling. But Zillow states that even factoring in the increasing mortgage rates, “the panel’s expectations for 2022 home price appreciation still rose to 9.3% from 9.0% last quarter. This would be a significant step down from the 19.6% appreciation observed over the 2021 calendar year, but still high above long-term historical averages.”
In short, this is still an expensive time to buy a house with respect to home prices. And with interest rates rising, homebuyers can expect less in the way of savings in that department moving into the future.
An Affordable Alternative: Park Model Homes
If you want to own your own home, you do not have to be priced out of the market if you are willing to go a different route than purchasing a traditional full-sized suburban house.
Park model homes offer the following financial advantages over traditional homes.
1. Less expensive to purchase.
According to data from Zillow as analyzed by The Zebra, the average cost of a home at the start of 2022 nationwide was $348,079.
For a lot of homebuyers, that price is simply out of budget. But if you purchase a park model home instead of a traditional full-size house, you can get a home of your own for a fraction of that price.
If you have never lived in a tiny house before, you might wonder if you can really get by with less space. But you will be surprised by just how roomy a park model home can be.
Consider the Woodland Park Timber Ridge Carlsbad pictured here. It measures just 33′-3″ long by 12’ wide, but with its open floor plan and high ceilings, it has a more spacious look and feel than a lot of traditional houses. That is plenty of home at an affordable price.
2. Affordable financing options.
When you purchase a park model home, you can choose from a variety of different financing options, just as you could if you were purchasing a traditional home. During your consultation, we can help you find flexible financing that will fit your budget.
3. Pay cash if you can afford it.
Because park model homes are so affordable, some buyers can afford to purchase them with cash upfront and in full.
The benefit of doing this is that you do not need to be concerned with interest payments over the years ahead. That could add up to a lot of savings. You will be able to avoid some other traditional home purchase costs such as mortgage insurance as well.
4. More affordable electrical costs.
While there are financial benefits upfront to purchasing a park model home, there are further cost savings when you live in your new home.
For multiple reasons, electrical costs for tiny houses are lower than they are for full size, traditional homes.
In the image above, you see the Woodland Park Timber Ridge Everglades, which gives you an example of the massive windows that are incorporated into many of our layouts.
Windows like these make it easy to establish a cross-breeze for natural cooling, reducing your HVAC dependence.
Plus, heating and cooling a smaller home even with HVAC is less expensive than heating or cooling a larger structure. With energy-efficient LED lights throughout your home, that cost will be more affordable as well.
5. Less expensive to clean and maintain.
Fewer square feet to clean and maintain also can result in huge cost savings over the years you are in your park model home.
Many park model houses feature beautiful hardwood floors like the one you see in the Athens 522 pictured above. Floors like these are fast and easy to sweep or mop clean.
You have fewer surfaces in general to wipe down, so you will spend less on cleaning solutions and supplies.
When it comes to maintenance, there are simply fewer elements that can break down in a park model home. Plus, you are likely to spot problems faster when you are living in a smaller home, which means you can deal with them before they become larger and more expensive issues.
6. Invest what you save.
Finally, every dollar you do not end up spending on an expensive mortgage is one you can put toward other purposes.
One thing you can do with all that extra money is invest it. The earlier you invest, the more time your money has to grow.
Another idea would be to put the money you save into starting a business. Whatever approach you are taking toward building wealth, choosing a park model home over a traditional more expensive home can help you reach your goals more rapidly.
Discover Financial Freedom Through Tiny Living
Buying a traditional house in today’s hot markets can be challenging to afford. But you do not need to put off your plans to purchase a home.
Living in a park model home can feasibly save you many thousands of dollars not just upfront, but also over the decades to come.
To find out more about any of the tiny house models we shared in this post, please contact us.
If you tell us more about your financial situation during your consultation, we can help you figure out how much you could potentially save by moving into a park model home.