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Investors & Co-Ownership

Updated: May 18

Investment
Investment

You are looking for a way to invest money that does not involve speculative investments such as Bitcoin or shares.


Why invest in tiny houses?

Compared to volatile financial investments, real estate investments offer tangible advantages. You can invest in different types of property:

  • Houses

  • Plots of Land

  • Combination of both

  • Retreat centers with a focus on sustainability

The demand for eco products is currently particularly strong. Tiny houses perfectly reflect this zeitgeist and offer investors attractive return opportunities with a manageable capital investment.


Sample calculation: Tiny House as a real estate investment

Cost breakdown and total investment

A Tiny House on a trailer costs around €50,000 plus tax if you do not use your own labor to build it. (There are also houses that are delivered ready-made and can be assembled by yourself. [You can find a selection of providers here).


Let's assume you find a plot of land for €80,000 and want to place 3 Tiny Houses there:

  • Houses: 150.000 € (3 × 50.000 €)

  • Plot: 80.000 €

  • Connections / construction / other: 20.000 €

  • Total investment: 250.000 €


Rental model and income calculation

You can calculate the following income for tourist use:


You would rent out a house for €110 per night. With an average occupancy rate of 60%, this results in a return on investment of €26,766 per house per year.


The running costs are made up of

  • Maintenance costs: € 2,600 per year per house

  • Cleaning costs for short-term rentals: With a changeover every 3 nights, around € 4,055 per year per house


ROI analysis and amortization period

Total calculation for three Tiny Houses:

  • Income per year for 3 houses: € 80,298 (3 × € 26,766)

  • Costs per year: € 19,965 (3 × (€ 2,600 + € 4,055))

  • Annual net income: € 60,333

This results in an amortization period of around 4.14 years (€ 250,000 ÷ € 60,333). After just over 4 years, both the houses and the land are paid for. This means you will have made a profit equal to the value of the land plus at least 50% of the value of the house - an excellent real estate investment with a calculable risk.


Co-ownership real estate: investing in tiny houses together

The co-ownership model is revolutionizing the real estate market by significantly lowering the barriers to entry for investors. It enables asset sharing between several parties, which spreads the risk and reduces the capital requirement per investor.


Asset sharing in Tiny House projects

Let's take the above calculation as a basis: with a 50% split (each party invests €125,000), the investment would also be repaid after around 4 years. Both partners benefit from the same attractive returns, but only have to put up half of the capital.


Practical example: 7m Tiny House in Co-Ownership

It can be even simpler:

Let's assume we are talking about a 7m Tiny House. The costs amount to around €40,000 plus a week's personal contribution to the construction.

If divided into two, each party would only have to invest €20,000.

Depending on the location and usage concept, the house can then be rented out:

  • With a long-term rent of €750 per month, each partner receives a monthly income of €375

  • This equates to €4,500 per year per person

  • After around 4.5 years, the investment is amortized

The special advantage: you continue to own half of the house, which means you could theoretically pay off the other partner if you want to take over the property completely.


Diverse co-ownership models

With co-ownership in real estate investments, there are endless possibilities that can be individually designed:

  • Different investment amounts and participation rates

  • Different roles of partners in the project

  • Flexible profit sharing models

  • Combinations of capital and labor

  • Customizable exit scenarios


Current Tiny House investment opportunities

Currently, there are the following specific options for your real estate investment:

  1. Boxcode: Offers 10% return on investments in 3 houses for a total of €240,000 (3 × €80,000)

  2. Real Tiny House Estate: Offers 20% return on investments in 2 houses for a total of €80,000

These pre-selected offers provide an easy entry into the world of Tiny House investments without the hassle of independent project development.


Find a Co-Ownership partner

We offer a special matching platform for those interested in the co-ownership model. Simply let us know your preferences and we will find the right partner for your Tiny House investment:


Your preferences for the ideal partnership:

Property type:

  • House

  • Land

  • Land with house

  • Tiny House production


Investment amount: What amount would you like to invest in your real estate investment?

Time period: How long would you like your investment to be repaid?


Your role in the project:

  • I can also make a personal contribution

  • Personal contribution plus primary administration

  • Administration only

  • Secondary role (pure investor)


Explanation Administration: As the administrator, you manage the project for all other participants.

Secondary standard role: You only provide capital.

Secondary open role: You only provide capital and waive the right to pay out to others and only retain the asset value.


Sustainable returns with tiny house investments

The tiny house movement is growing steadily in Germany and Europe. More and more people are looking for alternative, sustainable living concepts - whether as a vacation home, temporary living solution or permanent center of life. This development offers investors excellent opportunities to benefit from a growing market.


Advantages of Tiny House investment at a glance:

  • Manageable capital investment

  • Flexible choice of location and usage concepts

  • Calculable returns

  • Short amortization periods

  • Potential for land and property appreciation

  • Sustainable investment strategy with ecological added value

Comments


How do I find the right land or house?

We at the Tiny Living Club have developed a special Tiny House newsletter for this purpose. We send you 3 new plots of land weekly that can be used on-grid or off-grid.

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