Following two global economic crises in the last ten years, many homeowners have become sceptical of the very concept of traditional homeowners. Many are seeing the instability of the market as a reason to eschew mortgages and houses entirely, freeing them from debt and other responsibilities.
As tiny homes and caravans grow in popularity, it’s worth considering whether you want to give this type of lifestyle a try as well. Not only does doing so free you from the obligation of paying large sums of money for years on end, but it also gives you the gift of financial flexibility and independence.
While you will certainly have to cut out certain luxuries to live in a smaller space with fewer belongings, there are quite a few benefits to opting for tiny living in a caravan. Here are a few of our favourites:
1. You don’t need to go deeper into debt
The real estate market has seen its share of fluctuations lately. Sometimes, you’re lucky enough to snag some property of your own during a buyer’s market, but in most cities, the prices have gotten so high that it is no longer a financially viable option to buy or rent a home. For example, even the most modest of homes in the UK can cost a total of £100,000. While this can be supported by financing, you still need to make a down payment of roughly 15 to 20% of that on any given day.
For the downpayment on that mortgage alone, you could buy a quality caravan. Yes, you will have to pay 5% VAT on it. There will likely be annual pitching fees on caravan sites as well. However, all of these costs combined will still be far less than renting or buying a property, and won’t necessitate going deeper into debt.
2. You’ll have lower fixed costs than you would in a house
The cost of living in a caravan is significantly cheaper than the cost of living in a house. While you may have to pay fees to reside on a caravan site, you are exempt from council tax and will ultimately pay far less.
Your utility bills will also be cheaper, as these will be powered through an electric hook-up on site. More often than not, this is included in the residential fees. Even if power is cut, you can resort to back-up generators as a source of power.
You can even cut out your gas bills by using electrically powered appliances entirely. Certain refrigerators do use gas, but there are plenty of options on the market that are powered entirely by electricity. Induction cookers are also a good option, but if you cannot live without gas stoves, you can use bottled gas instead of main gas lines.
Static caravan insurance is also far cheaper than home insurance and is much easier to deal with.
3. You won’t be tied down to any single location
The traditional path for any life is to eventually settle down and put down roots. In a rapidly changing world, however, it pays to have some flexibility. Living in a caravan offers you that flexibility, especially since you can simply pick and drive to your new home and job whenever things start feeling a little bit stale.
It may seem that caravan living keeps you away from family, but that couldn’t be more wrong! Spending time with your family during the holidays is even easier since you can just drive to see them! If you do plan to travel around with your caravan rather than stay in one place, however, make sure to be familiar with the terms of your static caravan insurance.
People are finding greater and greater value in being free from the obligations of traditional lifestyles. With many mortgage crisis occurring around the globe, it’s worth considering whether forgoing that debt and living small is a good financial decision.
If you’re looking for static caravan insurance to protect your new lifestyle, send us at Frank Pickle Insurance a message. We’ve been protecting caravans and motorhomes since 1960.