Why Renting Land is the Smarter Choice for Tiny Home Living
Renting land secures your future and allows you to live more comfortably in the present.
Owning land has long been considered a hallmark of success, a tangible asset reflecting stability and prosperity. However, with current prices, renting is a wiser investment choice. The freedom of renting land provides two significant advantages that align perfectly with my goals of investing in my retirement and improving my lifestyle by going off the grid.
Financial Freedom and Quality of Life
Firstly, renting land frees up substantial amounts of money, allowing for a higher quality of life. Imagine not worrying about hefty mortgage payments, property taxes, and maintenance costs. Instead, you can allocate those funds towards experiences that enrich your life—travelling, hobbies, or simply enjoying more leisure time.
To illustrate, let's run some numbers. I found a nice block of land priced at $585,000. With a 10% deposit and an interest rate of 6.9%, the annual interest alone would cost about $36,301, or roughly $700 per week. Add in property rates ($2,000-$4,000) and amenities, putting you at around $40,000 per year or $770 per week. That's a significant financial burden or lost profits if you paid cash.
Now, compare this to renting an empty section.
If you ask around, you can find people willing to rent parks for $50-$180 per week, provided you're self-contained. Alternatively, specialised tiny home land parks found on Tiny Hub land share cost between $180-$250 per week and often include amenities. This means your total yearly expense for renting land could be as low as $9,360 to $13,000. Renting land could improve your cash flow by approximately $30,000 per year or $570 per week. This surplus can now be channelled into investments or your lifestyle.
Investing in Your Future
Secondly, the capital saved from not owning land can be invested in your future. At 44, retirement planning has become a priority for me. By renting land, I can divert the funds that would have gone into a mortgage into more lucrative investments, such as stocks, bonds, crypto, or business.
Exploring Sustainable Living
My transition to tiny home living is driven by a desire to lead a more sustainable lifestyle. Renting land provides the flexibility to choose locations that are ideal for off-grid living and growing my own food. It allows me to experiment with different setups without the long-term commitment that comes with owning land. This adaptability is crucial as I work towards setting up a more self-sufficient and eco-friendly lifestyle.
Conclusion
In conclusion, renting land offers unparalleled financial freedom and flexibility, making it the more intelligent choice for those looking to transition into tiny living. It allows you to invest in your lifestyle and future, providing the flexibility that land ownership cannot.