Financial Benefits And Breakdown Of Costs Involved In Owning A Tiny Home

Housing costs are some of the highest monthly bills that people will have during the course of their lifetime. Where you choose to live, the size of home you have, and the amenities that go along with it all contribute to how much it will cost to live each month.

Many people find that living in traditional homes is not cost effective. The average home in the U.S. is around 2,300 square feet and at that size, utilities, water, entertainment, and not to mention mortgage costs can go through the roof.

Tiny homes are a way to get the shelter you need without all of the extra space that can add up to big bucks each month. Tiny house living however is not for the faint of heart. It can take real sacrifice but at the end of the day, you can get everything you need without all the hassle.

Breaking down the costs of living in a tiny home

Heating and cooling

The first and most obvious savings when living in a micro-home is that it does not cost as much to keep the space heated or cooled. Many tiny homes are only about 2-300 square feet in size give or take. Imagine only having to heat and cool one room in your home and that’s the experience you’re looking at.

The cost of natural gas and electricity is skyrocketing each month. The more you can save on costs for these essentials, the more you will have for other aspects of your life.

Electricity

You may not know it but electricity is more expensive than gas used for heating your home. Consumers often spend more in electric bills cooling their homes or running electric space heaters than they do heating with gas.

With a small home, you don’t have to make a cooling unit work as hard to fill the space with cool air. In fact, many tiny homes do not even need the huge central air units needed to cool average sized homes. Wall units are often more than enough for the typical tiny home to remain cool during high-heat summer months.

Furnishings

In case it wasn’t obvious, when you have a small home, you don’t need as many pieces of furniture to make it functional. In the average multi-family home, you’re looking at couches, chairs, dining room sets, bedroom sets, huge televisions, and all the other stuff you need to fill things out.

In a tiny home, you need a fraction of these items because the entire living space is in one room. Depending on the quality of items you purchase, you may only need to spend a few hundred dollars furnishing a tiny home.

Maintenance

Homes inevitably need maintenance work like paint, new windows, new appliances, and other updates or repairs. In an average sized home, it’s easy to multiply those costs by the dozen. In a tiny home however, there is simply less material to maintain. Should you have to repair or replace a roof, replace windows, install a compost toilet, upgrade a cook top, or other items, you won’t have to pay as much.

The appliances in these homes are also much different animals than in traditional homes. For example heating units are much smaller and require less maintenance costs than traditional forced air furnaces.

Taxes

Real estate taxes are another cost that home owners need to content with. In a tiny home however, you can position your home on a very small lot. A small lot plus the small home itself translates to a very small taxable value.

Real estate taxes are determined on the market value of a home so a lower cost home is not going to be taxed as much as average sized homes. Tax savings are a huge advantage for home owners as it frees up money for improvements.

Breaking down the costs of living in a tiny home can help you see the benefits of owning one. Cost of operating a home like gas and electricity can be far lower. The cost of furnishing a small home is also substantially less. Many times it can be thousands of dollars to furnish a larger home compared to a smaller one. Lastly the taxable value of a small home is far lower than larger counterparts.

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CPA Services Are Essential For Community Association Management

Although the consensus of community associations are non-profit entities, financial transactions are still happening all the time. Therefore, the utilization of professional accountants is undeniable. Along with carrying out the financial transactions according to law, the services offered by a CPA help the association management to carry out the audit and tax requirements with ease. Professional accountants have become the name of the association game, and whether you are a profit or a non-profit entity, you have to have the services of accounting experts which can help you stay on the right track.

Audits and Reviews

The most common services the association requires in terms of financial matters are preparation of the financial statement in accordance with the legal procedures, and the audit of all the financial transactions. Audit does not offer cent percent security against fraud, but still, it can be an accurate measure of coming across the authenticity and legality of all the financial transactions for a particular period. Only a professional accountant can apply the legal and financial rules and guidelines for reviewing and auditing the transactions. The clients get interested in funding the community only when the financial statements are provided, and if the association has the services of an accounting professional such as a CPA, then that community can enjoy an obvious advantage over the others.

For example, take a look at the following reviews:

Tax Issues

Not only the commercial entities require the services of tax analysts, rather the community associations also need to have the professional services which can offer the association helpful and meaningful advice as to what tax type to go with. This cannot be done without proper knowledge of the non-profit tax types and related matters. Considering the working of the community association, an accountant can offer priceless advice as to whether to go with the Form 1120 or the Form 1120-H. There is no clear-cut idea as to tax working for a community association, rather several aspects are considered before finalizing the decision. Along with that, filing a tax return can become a walk in the park, provided the association has the services of accounting experts.

Hiring an Accountant for Community Associations

When it comes to having the services of professional accountants, the association management needs to hit the bull’s eye by going with the services of professionals having ample market experience up their sleeves. Specializing in association taxation can offer the management a peace of mind, as corporate financial experts would require time to settle into the groove. Therefore, whenever you intend to hire a professional, ensure you keep the mentioned factors in mind all the time.

Concluding Points

As mentioned above, a community association is a non-profit entity, yet you cannot take for granted the benefits a CPA can offer. Listed above are some of the primary financial and taxation requirements, but the associations need many complex tasks to be done by the professionals. The community management need to have a clear idea of such requirements and should go with the professional catering to those needs in a serene manner.

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Getting the Best Deal Out of the Use of a Buyer Agent

Any person that is looking for an apartment, will often tell you that one of the better ways to get an apartment found, will be that of taking a little time and using a buyer’s agent for their needs. This to a number of people may sound like a lost cause, but in reality, this is actually a good idea. The reason that this is such a great concept, is because this will allow them the chance to get an inside leg in on the rest of the people looking at the same apartment.

This can also be of great use in the fact that this allows for a person to have a little better luck in finding an apartment that will meet all of a person’s requirements in relation to getting all of the amenities that they are seeking out. The agent can do all of the leg work for them in going from place to place in getting an apartment that will be perfect for them and their needs.

Since many of the agents are licensed to be both a selling agent as well as a buyer, you are able to many times get a two for the price of one special and make sure that you have only one agent that you need to handle all of your basic needs. This can simplify the entire process down to a matter of a few simple little steps. The more that is known about this, then the better that the end result will be for a number of these people.

While it is nice for a person to go from place to place and look at the different apartments that are offered, it is also a great idea to let the agent do a lot of the leg work for you. This saves you time that you might waste on going from one place to another to get the best amenities for their money. This can lead to the number being reduced down to a just a few places that you can choose from on a regular basis. These apartments can then be toured by you after your agent has set up an appointment for you to go and take a tour of the apartment. All of this will be important when dealing with a buyer agent for your needs of getting a new place to live. A little knowledge will go a long way in getting a person the results that they are seeking out.

Other real estate resources to check out:

 

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