Many people claim they would like to buy a land for their tiny house and be independent. Few people do, most continue renting.
This post is long and detailed and it’s intended for those of you who are interested in buying tiny house land with friends or partners. There are many ways to buy a land for your tiny house. In this article we’ll cover the one we believe works best for most people in most situations.
- How do I find land to build my tiny house?
- What are the rules for building a tiny house on land?
- Is there a way to find out what is permitted in my area of choice?
Just few of the many questions you might be asking yourself as you search for land.
Although it isn’t as difficult as it used to be, still it isn’t easy to find land for your tiny home. Tiny homes are a relatively new type of home, so most states and cities are still not ready to approve or zone land for tiny housing. You don’t have to worry about it, with the tips and resources we provide below you can easily find land suitable for your tiny home and more importantly using the power of group buying you can acquire land that otherwise would cost X-thousands of dollars more!
Tiny House Land’s Biggest Stumbling Blocks…
Tiny Homes Land Cost
Land and home prices are not sky-high they are moon-high! After decades of speculation people with access to large sources of financing kept buying and re-selling land and housing with the sole purpose of artificially inflating prices they turned homes and land into an instrument of money extortion. In the current market tiny-home dwellers face the greatest challenge of all – finding parking and land for their homes. Tiny homes are affordable, beautiful, and comfortable but housing and land are not. Land in urban setting is heavily controlled by large corporate developers with the help of decades-old building codes and zoning laws that many states and municipalities enforce. Some states don’t allow tiny houses of any type. Some states allow them, but have strict restrictions about where and how they can be built.
Speculators turned homes and land into an instrument of money extortion
The Local Regulations Monster (aka Zoning)
Two big questions must be answered for each piece of land you are considering purchasing for a tiny home:
1. What is the zoning?
2. What building standards must be met?
Zoning laws regulate the use of land in a specific area and limit what can be built there. The state, county and local governments enact building codes that regulate specific construction rules. Zoning ordinances are created by the county or municipal governments.
Some counties do not have zoning laws or building regulations. However, basic safety and health regulations will still be required. There are no building codes requirements if you find property without restrictions. These situations can change. There may be restrictions on easement and deed.
Before purchasing land for a tiny home, it is advisable to check with the county. The county will inform you about the regulations and inspections required. This includes water and sanitation. Tiny Lots, a tiny community of houses in north Texas, was formed by the owners. They consulted the county to find out what rules were applicable to their property. According to the county, they only needed a septic system.
Zoning laws regulate the use of land in a specific area and limit what can be built there.
Tiny House Land Location Options:
Urban Land
Limited Supply & Draconian Zoning Bylaws
It is almost impossible to find land in urban areas. Lots that are available will be expensive and have strict building restrictions.
ADU
You can find someone who owns a house and rent a space from them or legalize your tiny home as Accessory Dwelling Unit (ADU).
Alternatives
You can read more about urban options in the Alternative arrangements section.
Suburban Land
More Options & Draconian Zoning Bylaws
It’s a different story for rural and suburban land. It’s amazing how many lots of building land are available for sale within a half hour radius from a city.
HOA Mafia
Finding a lot without restrictions, building codes or HOA (homeowners association) will be the biggest challenge.
EXPENSIVE
It will still be more expensive to rent or buy suburban land than rural land.
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Rural Land
The best place to build tiny homes
Prices drop as the population density decreases. The restrictive building codes associated with municipalities are not available on unincorporated land. You don’t have to worry about complying with specific state building codes. Rural people are more likely to be independent.
Neighbors and infrastructure
It’s easy to ignore your neighbor’s projects when they live half a mile from you. Complaints drive code enforcement. You’re more free to live and build as you wish if there aren’t any complaints. Rural land has its advantages and disadvantages. Rural land is often isolated and unserviceable, with sometimes no access roads. It can be great to live off the grid in a tiny house, but it requires some effort to build your road and install your water and electricity system.
Zoning & Building Codes
Factor in Zoning & Building Codes: Building codes and zoning are the most complicated aspects of building tiny homes. There aren’t any specific building codes in the United States that can be applied to tiny houses, particularly tiny ones on wheels.
Should you Own or Lease the Land? Advantages and disadvantages of Owning vs. Leasing Land:
| Owning Land | Leasing Land | |
| Advantages | ||
| Appreciation | The land\’s value can increase over time, providing the owner with a long-term investment opportunity. | No need to worry about the land\’s value or market fluctuations. |
| Control | The owner has complete control over how the land is used, developed, or improved. | The lessee has the ability to use the land for a specific period of time without committing to a long-term investment. |
| Equity | The owner builds equity in the land as property values increase over time. | The lessee can save money by not having to make a large down payment or taking out a mortgage to purchase the land. |
| Tax benefits | The owner can deduct property taxes and mortgage interest from their income taxes. | The lessee may be able to deduct lease payments as a business expense. |
| Disadvantages | ||
| Cost | The owner is responsible for all costs associated with the land, including maintenance, property taxes, and insurance. | The lessee may be responsible for some maintenance costs, but the landlord typically covers property taxes and insurance. |
| Risk | The owner assumes all risk associated with the land, including the possibility of the land decreasing in value or being damaged by natural disasters. | The lessee does not own the land and may not have control over certain aspects of its use, such as making major improvements or changes to the land. |
| Flexibility | The owner is committed to the land and may not be able to easily sell or relocate. | The lessee can move to a different location or lease different land at the end of the lease term. |
| Investment | The owner must make a large investment upfront to purchase the land. | The lessee does not build equity in the land and may not see a return on their investment. |
| Responsibility | The owner is responsible for all maintenance and repairs, which can be time-consuming and costly. | The lessee is not responsible for maintenance and repairs, but may have to adhere to certain restrictions or regulations. |
Moon-high prices! How to afford the land purchase?
Many tiny house owner wonder how to afford the land purchase. There are several ways to afford a land purchase, including:
- Saving money: This is the most traditional and straightforward approach. You can save up money over time by cutting back on expenses, increasing income, and setting aside a certain amount each month.
- Securing a loan: You can also apply for a loan to purchase the land, such as a mortgage or personal loan. Be sure to shop around and compare rates and terms to find the best option for you.
- Partnering with others: You can also partner with family, friends, or business associates to pool resources and purchase the land together. This can reduce the financial burden and allow you to afford the purchase.
- Government programs: Some government programs offer financial assistance or tax incentives for land purchases, such as the USDA’s Farm Service Agency loans or the Conservation Reserve Program.
- Rent-to-own: Some landowners offer rent-to-own options, which allows you to rent the land with the option to purchase it at a later time. This can be a good option if you need time to save up money or secure a loan.
There are several key steps to take when buying property with multiple owners.
First, you need to identify your purchasing goals and decide how you want to select and manage ownership in your new property. This includes financial decisions around how the costs for purchasing and operating the property will be split up between parties, who will receive what level of return depending on ownership shares, as well as who will have decision-making authority.
Next, it’s important to define roles and set rules within the group that can help everyone stay organized, focused on shared goals, and on track with responsibilities related to regular maintenance and upkeep. You should agree on what kind of assistance people are willing to provide. Additionally, there should also be a plan in place for any major repairs or improvements that will require more than one person’s time or money.
It is essential that each group member signs off on all financial documents prior to making any purchases so that each individual is held accountable for their agreed upon investment commitment before titles are transferred for ownership.
In order for things go smoothly across ownership groups, all members must also review any state or local regulations in advance as different states and local regulations may apply differently depending on whether or not the property is being purchased by one individual or a minimal liability company (or LLC). Finally, ensuring regular communication between all stakeholders is key so that each party knows their rights and responsibilities going forward.
