Bela and Spencer of thisxlife in Boulder Creek, California, were renters before they bought their 300-square-foot tiny house in 2007.
After including rent for the land, depreciation on the home, and loan interest, they cut housing costs by half, down from $30,000 to less than $15,000, they told Business Insider. They did that without a down payment or any first-time homebuyer incentives.
Because most banks don't consider tiny houses as "homes," many tiny-house buyers can't take out a mortgage and instead pay for the home through personal loans, they said. They did just that, but will have paid off their tiny house in just seven years — or less.
They also convert their tiny house into a vacation rental while they travel, which allows them to make a little income on the side, they said. "We could not have afforded to set up such a luxurious rental if we had continued to rent or even bought a starter home — and renting our house for a handful of months a year covers the costs of ownership," they said.
"There's no way we can really know the full financial picture of our tiny house, but it's easy to say that it's been a valuable investment," they said. "Much, much better than renting, as long as you can stomach the adventure!"