When some people think "dream home," they automatically think "." If you're looking to downsize, a tiny house is charming, practical and affordable, so purchasing one seems like a no-brainer ... or so we thought.
Finance expert is setting the record straight on tiny houses, but if you're a fan of the tiny house movement, his take might not be what you want to hear. In a money advice column for DecaturDaily.com, the financial advice guru says that buying a tiny house, no matter how cute it is, doesn't really make much financial sense. He writes:
My problem with these things is that there's no track record on them. There's also a pretty good chance they're going to be just a fad. Another problem is that you'd have a really small market when it comes time to sell your tiny house. In other words, they probably won't go up in value like a traditional home. They may actually lose value over the years.
He also goes on to say that because these pint-sized abodes have a "narrow market appeal" compared to standard houses, they will be even more difficult to sell for a profit down the road.
But don't get discouraged just yet, tiny house lovers. Dave admits that "if enough people buy tiny houses and they become a real part of our culture," they could become a good investment. And even if it might not be a good idea to buy one, you can always for a quick getaway!