Written By Ashley L. Hobson, Esq.
One of the most recent movements in real estate is the concept of the “tiny home”. We’ve had many Realtor friends ask about how to consult their clients when it comes to buying the perfect home. There is a lot to be said about changing your lifestyle to fit a new environment- it shouldn’t be a decision made lightly. It is important to consider certain issues before jumping into the tiny house movement. Below we take a look at some of the Pros and Cons of the tiny house fad.
Ownership and Investing in your Future
Home ownership can be both rewarding and draining. In today’s market, millennials are projected to be the next big target for home buying. Having equity in your home is one of the best ways to invest in your future. Additionally, the tax benefits of owning a home are beneficial as well. On the other hand, while renting might be an appealing option- it doesn’t have monetary return. In a time where the market is finally becoming more stable, the opportunity to own a home is becoming a more attainable goal.
While owning your own home is surely an investment, you will reap the benefits of this investment when it comes time to sell. Where Tiny Home are proving to differ from standard residences is in resale value. According to an article in Forbes Magazine entitled “5 Reasons Buying a Tiny House Is a Mistake”, tiny homes are actually less marketable. There is a small concentration of individuals that a tiny home would actually work for. It seems that you would be hard pressed to find a buyer who didn’t want to entertain house guests at some point. The pool of individuals truly interested in tiny homes shrinks even smaller due to lending institution restrictions. In the same Forbes Magazine article, the author notes that lenders often have square footage requirements that must be met. This means that buyers have to be ready to pay with cash. It might be easy to make an “in the moment” decision, but you really should consider the long term value of your investment.
Since millennials are a large target for home buying- it is likely many may consider “going tiny”. In a time where we can’t go five minutes without checking our texts, or social media and email accounts- the thought of cutting out clutter and living cleaner can be appealing. The idea of being mobile and picking up and moving whenever you want might appeal to those who love to travel. For those who don’t want to be tied down to one location forever, but still want to invest in real estate- this concept may work for you. Making the “tiny home” purchase has taken the hassle of shopping for a home away- it’s now as easy as clicking a button on Amazon. Student loans do not make the idea of owning a home appealing to many millennials; debt often gets in the way of getting loan approval. The tiny home movement does have its appeal when it comes to targeting the millennial crowd.
Space- is it really feasible?
While living simply might appeal to you in theory- it might not actually work in practice. Can you really part with 75% of your possessions? If you have a bike, cooking equipment, or shoe collection- this could prove to be difficult. Individuals interested in tiny homes should really consider what they can truly part with before going through with the purchase. If there are big items you can’t part with- will they fit in your tiny home? If you cannot answer this for certain, maybe hold off on the purchase.
We are proud to be sponsoring at this year’s Party with a Purpose as a GTR Business Affiliate.
. Discovering Commercial Real Estate
- DATE: Wednesday, February 24, 9:30 a.m. to 12:30 p.m.
- DESCRIPTION: If you are a newly licensed agent or a residential agent who wants to learn about commercial real estate, this course is NAR-approved that offers a broad overview of the basics of commercial real estate and how it differs from residential real estate. Realtors will be able to distinguish and understand the broker’s role and discover the different types of commercial properties, terms, valuation methods, marketing and resources for further education. While it will not equip you with all to practice commercial real estate, it will explain the business and introduce many of the resources needed to pursue a commercial transaction or a career in commercial real estate. Instructed by Carlos Fuentes, CCIM. PLUS, course is state-approved for 3-CE hours.
This course is NAR-approved that offers a broad overview of the basics of commercial real estate and how it differs from residential real estate._ Realtors will be able to distinguish and understand the broker’s role and discover the different types of commercial properties, terms, valuation_ methods, marketing and resources for further education. This is an ideal introductory course for those who are newly licensed and/or residential_ agents who want to learn more about commercial real estate. While it will not equip you to practice commercial real estate, it will explain the business_ and introduce many of the resources needed to pursue a commercial transaction or a career in commercial real estate. Instructed by Carlos Fuentes,_ CCIM. PLUS, course is state-approved for 3-CE hours. What You Will Learn in the Discovering Commercial Real Estate Course: * The duties of professionals who assist in commercial transactions * The key differences between commercial and residential real estate * Types of commercial real estate (Office, Retail, Industrial and Land) * Types of commercial transactions * Commercial contracts Brought to you by GTAR’s Realtors Commercial Alliance and co-sponsored by AB Capital Group and Florida Community Bank.
DATE: Tuesday, February 16, 9 a.m. to 1 p.m.
DESCRIPTION: The Sales Contract is the ultimate destination – the culmination of the Realtors® expertise with the customer’s binding agreement. In recognition of the full power it carries, this course was designed for real estate professionals to polish up their process of completing a contract from the first word to the last signature. Learn to view the contract as more than just an official document, but rather understand how to use it as an influential instrument to aid in closing. In conclusion, student will be able to explain the agreement to a customer/client, as well as identify the proper timing of execution and the use of the appropriate disclosures. Instructed by Phil Riek, Lic. Florida RE Instructor. NOTE: This course will cover the “as is’ contract only. Course is state-approved for 4-hours of CE Credits
LOCATION: Greater Tampa Association of Realtors
Join us March 10, 2016 in Tampa for the Gulf Coast Chapter of the Florida Association of Mortgage Professionals’ Annual Trade Show
To register, follow this link: http://www.planetreg.com/Tradeshow2016attendee
The Florida Association of Mortgage Professionals invites you to the 2016 Trade Show
March 3 2016 @ the Bonaventure Hotel and Conference Center
Education & Seminars
Homeready Program – Fannie Mae – speaker Evett Francis
Presentation on condominiums or other valuation related topics – Dept of HUD – Speaker, Dan Ellis
Best Use of Renovation Lending Programs / 203 K Program- REMN – Speaker Damon Richardson