Finance focus
The tiny house movement

As housing prices continue to soar, many people are increasingly considering whether to buy a tiny home to live in or as a holiday home.

The tiny house movement has been around for some time now, but despite its growing popularity, legislation is yet to catch up. This has left many confused about what’s legal, and what’s not.

If you’re interested in joining the tiny home movement, here are a few things you need to consider before buying.

Why people buy tiny homes 

What are the regulations?

Things can get a bit murky when you dive into the regulations around tiny houses. The rules vary depending on location, and many councils don’t even have clear tiny house regulations, making it tricky for aspiring tiny homeowners.

There are two types of tiny homes – those on a foundation, and those on a trailer on wheels. 

Tiny houses on a foundation are considered fixed dwellings and are usually treated like any other building, in the sense that you need council approval and building permits.

To get around these requirements, many people keep their tiny homes on wheels. Councils often apply the same rules to tiny houses as they do to caravans. The trailers that tiny houses are constructed on also need to comply with certain standards. 

In most states, there are limitations on how long you can permanently live in tiny homes on private land. Some councils are relaxing these rules

Bottom line: Contact your state/territory government and local council before buying a tiny house to see what the latest regulations are that apply to you. You’ll also need to look into the maximum size limits of your tiny home.

You can find more information, including local laws and state regulations, on the Australian Tiny House Association website

What about finance?

If you opt for a tiny home on wheels (and it’s legally classified as a caravan), applying for a home loan won’t work. But that doesn’t mean your tiny home dream is dead in the water. 

We may be able to line you up with a personal loan, for example, or in some instances, you may be able to use your existing equity to fund the build. Speak to us and we’ll run you through your finance options.

If you need finance to purchase land to park your tiny home on, or for the vehicle to tow it, we can also help with that.

If you’re interested in joining the tiny home movement, get in touch and let’s put the wheels in motion.

All information is intended to be a guide only and should not be considered legal advice, it’s always best to contact your state and local councils before purchasing a tiny house.

The information provided is general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.