Tag Archives: real estate

Tiny House Option- Part One: The Problem With The American Mindset

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One day recently I had the TV on as background noise while I got things done around the house and online. A certain real estate show featured a couple who were considering moving due to different issues with their #house. One of the issues was cramped space. Of course the space around us is an important consideration in a home. A kitchen in which you can manuver around each other easily is preferrable to a one-person-only space wherein if the oven is open there’s a danger of both parties getting burned. Issues like the commute to work, distance from schools, Church, friends and family are very important factors when considering a home purchase or selling one’s home in order to move to another house.

As I continued listening to the program I heard a phrase that bothered me. The husband of the couple stated that their bedroom was small by “today’s standard”. Immediately I thought, “Man I was with ya’ until that phrase”.

Here’s the Problem:
Buying a new home should not be influenced by “today’s standards”. That phrase tells me the house hunter is concerned with how his place will compare to his friends, family and neighbors. Exodus 20:17 warns us not to want what our neighbors have. In other words our desire should not be fueled by seeing something our neighbor owns. It should be fuled by a desire to have what God wants to provide then use #His generous gifts to His glory. When we compare what we have to what others are blessed with we essentially tell God two things…

•”What You’ve given me isn’t enough. I want what You gave them”.
•”I know what you’ve given me is part of your plan, but it’s obviously a flawed plan”.

Could you imagine flying into God’s throne room and making those statements directly to Him? Of course not! That would be rude and disrespectful. Yet, when it comes to money and material posessions we think to ourselves that God is supposed update our blessings according to the human standard of the day. Thankfully, that’s not how God operates. God is more concerned with supplying our needs than granting our petty materialistic desires.

When we hold onto the desire to have the shiny toys, big house, fancy cars and coolest electronics we do two things:

First we deprive ourselves of the ability to experience the joy of having less. Most Americans are convinced they “could never live in a Tiny House”. The idea of less space means having less stuff and God forbid they sell the PS4 and the Xbox1. Surely they can’t be expected to survive with only five pair of shoes instead of the twenty five they currently enjoy.

(Don’t get me started on the fact that they haven’t worn eighty percent of those shoes in over three years.)

Sadly we, the human race, have allowed money and stuff to be the source of our joy and happiness in our lives. We feel that if we have to down size we are somehow downgrading or moving backward financially. That mentality is so very off-base.

The second thing we do by holding onto the materialistic mentality is set ourselves up for unnecessary spending. We are daily witness to the fact that those in big houses feel the need to fill those houses with stuff like cars, paintings, clothes, game consoles and games, pool tables, big TVs, an upgraded kitchen, designer furniture, etc. Filling the space is just the beginning of the dominoe effect. Next is being sure all the stuff is maintained, that is followed by upgrading when a newer model is introduced. It’s not hard to see why even those earning tremendous salaries can still end up living paycheck-to-paycheck.

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The Tiny House phenomenon sweeping America has captured my attention partly because it helps us escape the materialistic mentality and therefore helps reduce spending and increase savings.

There are folks in this world with no clothes, food or house. If they had the opportunity to walk into my house right now they’d feel like they had entered a palace.
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A kitchen with a working stove, and fridge, next to a living room where most of us enjoy cable television would be unheard of to many poverty stricken families across the globe. Lying on my memory foam bed would be more than a dream come true. Air conditioning? That’s far beyond their most ambitious dreams! Who am I to tell God that what He’s allowed in my life isn’t enough? If anything we should be saying, “It’s too much for me to keep all to myself. Who can I bless?”

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So when you’re listening to your waterproof shower radio, using your scented body wash and drying off with a freshly washed, 100% cotton towel, you may want to ask yourself: What if I chose the Tiny House Option and lived with less so someone else could have more?

The “Tiny House” Option

Here at B.B.M. we believe strongly in exploring all avenues of income, investing, saving and creating assets. Through this exploration we insist on seeking God’s direction concerning the information we find.

 For the past couple years I have been very impressed with a relatively new movement sweeping across our country- Tiny and Small houses. The phrase Tiny House may cause you to think of a doll house, a cramped space that’s hard to move around in, or a shack in the woods only fit for housing an old hermit. However, the truth is far from such images.

While researching the Tiny House phenomenon I found that these fully-functioning, scaled-down houses are really spacious, equipped with amenities, and really well-designed. Honestly, there were many times I asked, “How’d they fit the outside around the inside?” The designers were able to take a small space and create a very roomy interior.

Another great thing about them is they are so much more affordable than the traditional houses we are used to in America. From a financial perspective Small and Tiny houses are a really great investment and a great money-saving tool for those seeking to buy their first home.

My wife and I know a couple who have recently purchased a large three bedroom house complete with formal dining room, large living room, game room and several extra rooms which are not necessary for a young couple who has yet to have their first child. They are only a few months into their home-ownership and the financial obligation is already causing significant strain on their wallets which then is causing strain on their marriage.

Now, imagine this same couple but with a shift in their mindset. Instead of the big, fancy house they invest in a Tiny House. The square footage is much less but so is the monthly mortgage payment. In fact, instead of stressing over money, they are able to put an extra 1,200 dollars a month into their savings. Also, the term of their mortgage is only fifteen years, not thirty.

Let’s do some math: Let’s say the mortgage on our friends’ traditional house is only $1,500 for thirty years. That’s a total of $540,000. The payments on the Tiny House are $300 per month for fifteen years. That’s a total of $54,000. This couple would have saved $486,000 by purchasing a Tiny or Small House instead of the traditional house that is now causing major problems in their life together. Can you imagine what they could have done with an additional $486,000?

Imagine that they got pregnant the same day they purchased the smaller house. Let’s say they took $600 (of the extra 1200) a month and placed it in a savings account for the child’s higher education. In eighteen years they’d have $129,600 dollars BEFORE INTEREST IS ADDED!!

Isn’t that a much better situation than being stressed over a mortgage, trying to find a second job, refinancing and maybe still losing their home after all their hard work?

If God gave me the choice in my son’s future I’d definitely choose the Tiny House option for him. In fact, my 14 year old son, my wife and I did have that conversation and I’m proud to say he is completely ok with the idea of us building a Tiny House for him to use during his college years so that he can save for his own financial future. Of course he’ll be getting a job to pay for a portion of it. I do believe in teaching our children they must work for what they desire. My wife and I also have no problem with eventually turning over the deed to this Tiny House to our son so that he can rent it for income if he chooses.

Are Tiny Houses for everyone? No, absolutely not. Neither is the stock market, business ownership or mutual funds. However, it is an option worth exploring. I strongly advise you take a couple minutes here and there to look into the cost of building or buying a Tiny or Small house. You may be in a position where downsizing is a smart financial decision. Maybe you’re able to invest in a few of these smaller dwellings as a means of creating Real estate asset. Either way, seek God’s direction in all financial matters!!