For those on a low income, finding an affordable place to live is becoming increasingly difficult. Due to high down payment requirements, buying a property is out of the question for most people. However, renting traditional properties - especially in cities - is becoming unfeasible too. So where can you live nowadays on a tight budget?
There are a few alternative solutions to consider, but you need to be careful not to choose the wrong ones. This post explores 5 of the best budgeting living solutions to consider and 5 of the worst budget living solutions to avoid at all costs.
The Best
Living with parents
If you’re a young person, one of the most cost-effective solutions is to continue living with your parents. While the urge to move out and be independent can be strong, living at home can be a chance to save up money while you start your career and figure out your goals. In some cultures, an intergenerational home can even be the norm.
Studio apartments
A studio apartment can be another smart choice for those on a tight budget. These compact spaces have lower rent than larger apartments, making them ideal for single individuals or couples. Utilities and maintenance costs (if you buy a studio) can also be very cheap. Just be prepared to live a minimalist lifestyle - you won’t have the space to collect a lot of stuff.
Co-living spaces
Co-living spaces include house shares and apartments with roommates. You typically get your own private bedroom, but share communal areas such as a kitchen and lounge with other occupants. They are a great option for young professionals who want to save on rent and who do not want to live alone. Make sure to view a few co-living spaces and spend time talking to other occupants to determine whether you will get along.
Tiny homes
Tiny homes have skyrocketed in popularity in recent years. As the name suggests, these are houses that are much smaller and more compact than your average house. They can be a cheap route onto the property ladder, costing
less than traditional houses to build and requiring much less maintenance.
Trailers
Living in a trailer has long been a popular option for those on low incomes. This could be a static trailer or a mobile trailer such as an RV that you can travel around in. Pitch fees can vary a lot across the country, as can the cost of trailers themselves. When choosing a trailer park, make sure to consider the demographic - some are targeted at all ages, while others are targeted at retirees.
The Worst
Squatting
‘Squatters rights’ are not what they used to be - as a result of recent laws, it is
illegal to squat in a vacant property across most of the country nowadays. It is also often unsafe - especially if the property is not in good condition. Therefore, this extreme budget living solution should always be avoided.
Living in self-storage
Self-storage fees are much cheaper than most property fees, making living in a self-storage unit a tempting idea for some people. However, self-storage units are not designed for living in. In almost all facilities,
self storage unit rules strictly forbid living in your unit, and you could face eviction and legal penalties.
Uninhabitable fixer-uppers
It’s possible to buy properties in very poor condition cheaply. These ‘fixer uppers’ can be a cheap route onto the property ladder, however you will need to spend money to fix them up to make them safe and comfortable before you move in. Moving into a home that is not deemed habitable could put your health at great risk and you may be forcibly evicted if you cannot get it into a liveable condition.
Long-term couch surfing
You can save a lot of money by sleeping on a friend’s couch. This can be a good temporary option while looking for someone else to live. However, it is not a good long-term option - your friend’s generosity may only extend so far, and a lack of privacy and personal space for belongings could make it uncomfortable.
Properties in dangerous locations
It’s possible to buy very cheap properties in locations with extreme climates or a high risk of natural disasters, however living in these properties is rarely a good idea. Having to protect and repair your home could be very expensive and you could be putting your own life at risk. You may even completely lose your home (for example, a cheap coastal cliff top property could fall into the sea!).
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