Is it Cheaper to Live in a House or an RV?

We have lived in our RV for 1 month now and there is so much we have learned in this short amount of time you kind of have to since the function, cost and space is so different from residential living.

But to the point:

Is it cheaper to live in a house or an RV? Living in an RV is significantly cheaper to pay for and ultimately worth less than a home when compared. If you are wondering if the monthly expense is less than a home, you may be looking at the same costs overall due to the rental spaces and upkeep that RV’s need.

Read on to see what expenses you will incur owning an RV and some things you will no longer need when leaving residential living.

 Of course, it will completely depend on your home cost and the price of your RV selection that will really determine which is cheaper or if they are pretty much the same when everything is broken down into a cost comparison.

In fact, since you are already looking you should break down the monthly expenses you have for your home and look into places you would park your RV. 

There are camping subscriptions that can ultimately save you money throughout the course of a year, and free places to park as well. 

These are all things you will want to consider when wondering whether RV living is cheaper or not.

Payments on an RV vs. House

Since my wife is also a Real Estate Agent she spotted off some facts about home payments vs RV.

Payments on an Rv and on a house are different because you’ll pay for an RV for up to 7 years compared to a 15- 30year loan on your house. 

If you have a $30,000 trailer at a 5% rate you’ll pay around $2,100 down and pay roughly $5,000 in interest over the life of the loan on a depreciating asset.

 If you have a home at $250,000 at 4% you’ll pay a $10,000 down payment and just about  $180,000 in interest over a 30 year loan period and likely have equity in the home. But is it going to be worth what you paid in interest? 

An RV is cheaper to live in but gives you less back since it was affordable in the first place.

Value on your Home vs. RV

 When you resell your home you will more than likely gain equity and it will hold value as opposed to an RV that is meant for recreation only and loses value immediately.

When buying a house and selling it, It’s kind of like cash back, you put money in and you get it back but in the form of your own money spent over a long period of time. Oof! 

 If you buy an older RV and make it new again, which is actually pretty popular these days.   You are building value in something you can make a profit from. 

You could also buy a used RV and save yourself the brunt of the loss then sell before it loses too much value then buy another. 

Home Size vs.RV Size

An Rv is significantly smaller than a home, so in comparison, there isn’t much at all. The only thing they have in common is that they contain all the necessary functions that you need to cook, bathe, and sleep.   

An RV is 200 + square feet and not much more than that, there are places to be but no real bedrooms aside from the main sleeping area.  The rest of the sleeping arrangements are made from pull-outs and table space. 

A home is on average 2,000 square feet and I’m sure I don’t need to go into detail on this one but for the sake of the article we will add a little something. 

A home will contain entertainment areas for guests and for the family at once as well as hallways and separate bedrooms with adequate size and ample room to host parties, large holiday gatherings, and jumping jack competitions.

Is It Cheaper To Live In An RV Than An Apartment?

Yes, remember that you are investing in something you own. If you purchase the RV outright or by monthly payment your expenses will likely be cheaper than renting.

If you are making payments on the trailer you will probably spend the same amount as renting, unless you park your rig on a friend or family member’s property then you are coming out cheaper again.

 Whereas when you are renting you are essentially trading money for a right here right now place to live.

Read on for more details on this matter:

If you need to make payments on the RV and then also rent your camping area, that could be as much as your rent is currently.

  An average camping spot is $33+ per night for 365 days a year that’s just over $12,000 and that is just a base price.

The positive side of living in an RV rather than renting is that you are close to owning an asset after 1 year if you make the same payment that you did as a renter. 

If you make the minimum payment you could save money or allocate it elsewhere until you’re ready to move on or sell. 

When you are renting, you aren’t responsible for maintenance, which is nice when the water heater or other appliances fail on you. However; you are left on the hook for damages and appliances that don’t work when you leave and your deposit becomes payment to your rental agency. 

Unfortunately, most deposits are kept even if there are no apparent issues with your apartment.  Funds are used to repaint and clean for the next tenant, leaving you with more money to come up with for the next rental property.

Is It Possible To Live In An RV?

Not only is living in an RV possible, but it is also a lifestyle that unless researched you may not know how big it truly is. People are traveling full time in their RVs, permanently lodging in campgrounds, and parking them on BLM lands all over the place!. 

People who live in RV’s love to share how they are creating their journey, much like us through trial and error. 

When people who RV have issues, or advice about how they upgrade or where they store items and how much downsizing is needed to go tiny they create a solution and if they share that information via YouTube or Blog, it helps others become better at being self-sufficient.

 Learning more about how going fulltime in an RV is possible and how people are able to have that kind of life makes people more comfortable in their decisions. 

Rving can provide the ability to be less reliant on the home buying process that takes years to achieve, that’s assuming that your financial situation never changes in 15-30 years and what the so-called ‘norm’ is can have an extremely freeing effect. Even if it is a little scary at first.  

Summary

Living in an RV is cheaper than purchasing a home. There is definitely a mind shift when you decide to live full-time in an RV. You will have different costs and maintenance than you would in a traditional home but the upkeep is just a part of the experience. 

If you want to travel more and you are retiring or you have a job that can allow you to do so I recommend trying it. Just keep in mind that RVing is not for everyone and that is okay. If you are considering taking the leap I would recommend renting an RV for a week and give yourself the time and experience necessary to make the decision. 

Thanks for reading and Happy Trails!