Affordable Housing Budgets Use Total Cost of Ownership (TCO)

New Home Total Cost of Ownership

New Home Total Cost of Ownership

Just as "beauty is in the eye if the beholder," affordable items are bought with the buyer's wallet.

For long term investments like homes, there's a need to determine if you measure cost in initial out-of-pocket, lifetime of loan, or total cost of ownership (TCO). This last metric leans toward a mix of up front fees, monthly loan service, maintenance, and utilities when totaled.

Using TCO as a guide is often necessary for justifying costs of up front investments in home efficiency including passive/active solar, high performance windows, super insulation, and other "green building" techniques including materials and finishes. Many costs carry higher up front expense and/or an advancement of site infrastructure, that slightly raises monthly loan service, while greatly lowering monthly utility expenses (and doing ol' Mama E some huge favors in the long run).

As you've probably seen, many buying McMansions opt for lots of extra space and premium surroundings. Consider the advantage of choosing smaller living spaces and Earth-friendly construction with high long term performance and advanced efficiencies as part of your lifestyle strategy.

In the end, you should save more money by making "affordable" synonymous with "efficient."

Just my though on affordable housing as a cabin, cottage, and tiny house guy.

Live Large -- Go Tiny! - Thom [>:-)