Adventures in Sustainable Living Podcast
Episode 129
Ten Tips for Building a Cabin on a Budget
If you have never lived outside of your home country most likely you have no appreciation for just how expensive it can be to live in the United States. While most people view the US as the land of opportunity, there are plenty of places in the world where life is much more simple. We get so caught up in just living day to day, that we never stop to realize that life could be so much different.
In this episode, I am going to give more practical advice on just how you can cut your cost of living, improve your standard of living, be debt free, and have more personal freedom than you ever thought possible. So stay tuned for E129 where I talk about ten tips for building a cabin on a budget.
Welcome back everyone to the Adventures in Sustainable Living Podcast. This is your host Patrick and this is E129 which is called Ten Tips for Building a Cabin on a Budget.
What I am going to present in this episode is something that is the exact opposite of the prevailing thoughts in our culture about home ownership. I first want to give you a little bit of a different perspective on the mortgage market and why you should change the way you think about it. Then by the end of this episode, you will have ten valuable tips on how you can have your own home yet avoid the expensive 30 year mortgage process.
In today’s world, one of my most prevailing thoughts is that life ought to be simple. Yet it seems that humanity loves to make things more difficult. It seems as if there is no longer any straight forward way to accomplish anything. And yet we go head long into this complexity all the while never realizing that the personal freedom we long for keeps fading away over the distance horizon.
As simple as my life is at this point, I too have been guilty of making things far more difficult than it needs to be. I have certainly discussed in previous episodes how I went about simplifying my life and getting completely out of debt. It took 5 years of focused effort, lots of hard work and sacrifice but the end result was well worth the effort.
One of the most common rabbits holes that we get drawn into is home ownership. Most people have the desire to own their own home perhaps because it gives them some sort of personal security. In most developed countries worldwide, home ownership ranges from 60% to as high as 96% of the population in Romania. In Kenya 75% of the population owns their own home. In Australia it is about 66%, which is similar to the US. In most European countries home ownership is about 75% of the population.
However, in most countries around the world home mortgages are out of reach for the average person. Yet in almost every developing country where I have lived and worked, most families live in their own homes.
So, how is this possible?
Most families live on properties that have been in the family for decades. In the beginning, someone in the family purchased the land. Then initially the home that was built was very small. The owners paid cash for building materials and most likely the majority of the building was performed by the owners. Each generation develops the property a little more. Over time, the family ends of with a larger much nicer home. Although most homes are a work in progress for decades, they are happy with the result because they owe money to no one.
This is similar to what I did when I purchased the cabin property. I mortgaged only the land and all improvements were paid for out of pocket. Initially I purchased the land under a rather expensive land contract. But over 2 years I managed to pay down the principle by 35%. This gave me enough financial leverage to acquire a much less expensive bank mortgage. That set the stage for my paying off the land in about 15 years.
Although part of how I developed the cabin property was made possible due to my previous construction experience, much of what I did was truly learn as you go. What most people these days do not realize is that they can actually do the same sort of thing with just a little forethought and planning.
In recent years I have noticed a very interesting trend in that more and more people want to either go off the grid or find a way to get back to the basics. But at the same time many of those people would like to do that very thing on a reasonable budget. However, this can be challenging to do when you are looking at purchasing land, building a home, and perhaps setting up a homestead.
So, why would you want to go to all this trouble? Is is not so much easier to purchase an existing home and simply pay a mortgage.The United States is unique in one respect when it comes to the mortgage market. We are the only country in the world that offers a fixed rate 30 year mortgage. While this may sound like the best way to go, I can assure you that the 30 year mortgage is not your friend. There are actually some very creative alternatives to the 30 years mortgage that will save you a substantial amount of money.
I used to own a house on which I carried a mortgage. It was the typical setup where my monthly payment included allotments for principle, interest, mortgage insurance, and escrow for property taxes. Since I was able to deduct mortgage interest off of my taxable income, this saved me about $2500 every year. At least that was a benefit because over a 5 year period that saved me $12,500 dollars in taxes.
At first glance, that appears to be a good deal. However, look at what I had to do to get that kind of savings. Over 5 years I am out of pocket $65,000. During that time, my principle on the loan is being reduced by about $15,000 and I am saving $12,500 in taxes. Therefore, the total benefit for me over 5 years is about $27,000. That means over 5 years I am out of pocket $38,000 for something that produces zero benefit for me because all of that is profit for the bank just for the privilege of loaning me money. And this means over the life of the mortgage I will be out of pocket $228,000 dollars for something that produces no benefit to me. Again, all of that money simply goes to the bank.
What most people never realize is that there is a simpler and better way to do this and I am going to give you ten tips on how to accomplish just that. It is quite possible to build your own place a little at a time and save yourself an incredible amount of money. Keep listening because I am going to give you 10 tips for building a cabin on a budget.
Now if you search the internet you will find numerous options for building an inexpensive cabin. These ideas range from cabin kits, sheds, pallet construction, tiny homes, and even cabins built from shipping containers.
All that being said, what I’ve always stressed is that whatever you decide to build, make sure that it will be comfortable for years to come. After all you have to establish a decent lifestyle and a decent standard of living if you are going to stick with this over the long haul.
So, I just want you to consider the following 10 tips for building a cabin on a budget.
1) Forethought and Planning
First and foremost, do not jump into anything. Take your time. Shop around and consider as many options as possible. Not only are the possibilities are truly endless but there is a tremendous amount of information available on how to build whatever type of structure you want. Most of the time you have to just plan ahead. Failure to plan properly for building any type of structure could easily cost you a significant amount of money to go back and correct mistakes. So think ahead.
2) Keep it simple
This should be a no brainer. The simpler the floor plan, the easier it will be to build. Consequently, it will also be much more cost affective. One of my cabins is 14 feet x 20 feet with a 3/4 loft and a deck off the back side. A very simple design that was built at $65 per square foot when local building cost average $250 per square foot.
3) Keep it small
Smaller structures are not only cost effective but they are less expensive to heat and cool. Furthermore, they require much less maintenance. You do not necessarily need to build a “tiny home”. But at the same time, do not over build and end up with something that means unnecessary future expense.
Most people, especially Americans, live in houses that are much larger than what they truly need. This simply adds to expenses such as maintenance, insurance, repairs, heating and cooling costs. And as many of those people age they sell the big house and downsize. So, why not keep it simple in the beginning and save yourself a tremendous amount of money.
4) Built it Yourself
Understandably, not everyone has the same skill level. But, if you have any construction knowledge at all, you can save yourself a considerable amount of money.
When I built my second cabin, I did the foundation work and then had a contractor frame and dry in the structure, as well as do the wiring. I then finished out the interior, built the deck and installed the solar array. By doing this I saved myself about $35,000.
When I built my storage shed, which measures 10 foot by 20 foot with 10 foot walls, a steep gable, and half loft. Total cost was $2,500. I recently priced a storage shed kit that was 14 foot by 16 foot with 8 foot walls for $16,500.
If you do not know a lot about construction then learn. Take a class. Perhaps work with a handyman and learn some new skills. This is similar to what I did when I installed the solar. I knew absolutely nothing about electricity when I started. I took a rather extensive class in solar design and installation, went back home and did all the work myself. My total investment in the class was about $2,000 and I save myself about $15K by doing the install myself.
My point being, do not let a lack of knowledge be a source of discouragement. Learn a new skill and do it yourself.
5) Use cost effective foundation options
There are several inexpensive options for foundations especially with smaller structures. Cinder blocks, concrete tubes, square concrete footings, and even patio bricks are good inexpensive options. I have used this technique rather extensively at the cabin and it has saved me thousands of dollars.
6) Stick to the basic floor plan when purchasing a package
If you decide to purchase a kit home, then stick to a very basic floor plan. Customizing can and will be expensive. If you want to change things later, most likely you can purchase extra materials locally and save yourself a considerable amount of money.
7) Always purchase quality material
Never purchase substandard material. The money saved up front will be put into extra repairs later and then some. This may seem counter productive when trying to build an affordable cabin, but as the saying goes, “You get what you pay for.”
Additionally, purchasing high quality windows and doors will save on heating and cooling bills. Even if you have to use smaller windows, you will be glad you purchased higher quality material.
That said, there are plenty of businesses that sell after market materials that are very high quality. For example, when I was adding onto the cabin this year, windows at the local big box hardware store were $350 each. I purchased some nice after market windows for $100 each and saved myself $1000.
8) Consider going off grid
If you want to go off grid consider installing renewable energy which can save you a considerable amount of money over the years. If you stick to a plan to keep things simple, then it will not cost you your right arm to install renewable energy. When I built my first cabin, the local utility company wanted to charge me $30,000 to run utility lines to the cabin. My solar array only cost $8,500 and paid for itself in 2 years. Now my electricity is free.
9) Standard construction versus logs
Many people love the look and feel of a log cabin. I know I do. However, many builders and real estate folks alike, will tell you that standard construction buildings are better insulated, easier to build, easier to repair, and less expensive to insure.
From a personal perspective, I have experience building and living in both types of structures. Just like anything else, there are advantages and disadvantages to both. Take for example:
-If your access is challenging, it is easier to haul in lumber as opposed to logs.
-Standard lumber is easier to handle due to weight.
-Framing is easier with lumber as opposed to logs
-Standard construction buildings can easily be insulated. Log structures are simply dependent on the thickness of the walls for construction.
-Log structures are going to be A LOT heavier.
-If working alone, construction with standard lumber is much easier.
All this being said, I have built both types of structures and did the work almost entirely alone. As I said, each has its advantages and disadvantages. So weigh your options and go with something you really want. Just keep in mind that if you want to live somewhat remote, you ease of access is going to be a deciding factor in what you build.
10) Purchase milled logs from a lumber company
Logs used for cabin kits are precisely milled for a tight fit, improved insulation, and easier construction. Instead of purchasing a kit, considering purchasing only the logs and doing the construction work yourself. You can find lumber companies that mill logs by simply searching for "house logs". Most places are going to charge for delivery because the logs have to be shipped on a large flatbed truck.
Based on my recent search, if I purchased premised logs I calculated it would cost me about $8,000 to build a 20 foot by 20 foot single story cabin. That is an extremely fair price.
Trust me when I say that if you want to build a log cabin the old fashion way, it requires a tremendous amount of physical labor. I know from personal experience because that is exactly how I built my first cabin. At this point in time, if I were to build another log cabin I would simply purchase pre-milled logs.
Final comments
In the end I certainly hope you have found these tips to be helpful. I actually followed many of these ideas when it came to building my cabins. Consequently, I saved a significant amount of money.
For example, my latest project at the cabin was to add on a 14 foot by 14 foot sunroom. So that measures about . I completely this project over a period of two years. The first year I did the foundation work and the brick floor. I waited and shopped around for patio brick to go on sale and ended up purchasing brick at a 60% discount. Shortly thereafter, the price of lumber skyrocketed. So I put the framing work off until the following year. Once lumber prices went down by literally 75% I purchased materials and completed the construction. Cost of construction was $13K USD which is the equivalent of $66.32 per square foot. Based on local market value construction costs, if I had had someone else do the work it would have cost me almost $50K USD.
Yet, once again during this construction process I was confronted with doing things I did not know how to do. So, I had to learn.
Once again I want to stress that there are so many alternatives to having your own home. You do not have to go with the 30 year mortgage. That financial beast is just not your friend and I would strongly encourage you to not go that route if you can at all avoid it.
Now, many of you likely remember the mortgage crisis back around 2008. Hundreds of thousands of people lost their homes, lost their life savings, and lost their retirement funds. This all happened because of bad investment decisions made by numerous banking executives. Yet those same executives were able to keep their millions of dollars while millions of other lost everything they owned. This goes to show just how unfair and one sided the financial market can be. So, why would you enslave yourself to a 30 year mortgage if you don’t have to?
By learning new skills, doing things yourself, and investing your own personal time, you can have a fantastic home, and even live off grid if you so desire, save yourself hundreds of thousands of dollars and have a whole lot more personal freedom. Furthermore, if you plan carefully, you can even be completely debt free.
You can even manage to avoid the 30 year mortgage trap by:
A little forethought and planning
Keeping it simple.
Keeping it small.
Building it yourself.
Using cost effective design with foundations
Sticking to a basic floor plan.
Purchasing quality materials
Going off grid
Considering your construction options such as standard framing versus log construction
Using pre-milled logs.
On a personal note, I have incorporated every single one of these principles in all of the building projects on the homestead. Furthermore, much of what I did required a lot of learning. So, don’t be afraid to learn a new skill and try something completely new and different. What happens when you first start doing this kind of thing is that you start with a small success and that encourages you to do a little more, then a little more, then a little more. Before you know it you are building things like a pro.
So, step outside of mainstream. Step outside of what people normally expect of you. Take a chance and learn something new.
Well that’s about it for this week folks. I hope you have enjoyed this episode and it has encouraged you to build your own cabin on a budget.
And if you enjoy my podcast then please take the time to leave me with a review and don’t forget to subscribe to the Adventures in Sustainable Living Podcast as well as my companion blog Off Grid Living News.
But for now I want to close with episode with a quote from Leo Durocher, who was professional baseball player, manager and coach.
He once said, “I believe in rules. Sure I do. If there weren’t any rules, how could you break them?”
So, that is my final encouragement for all of you to step out there and do something outside the norm.
I hope you will join me next week for another episode. Until then, always remember to live sustainably because this is how we build a better future.
