For this month’s blog, I’m stepping in to share how Tiny Home Living—paired with financial advice—transformed my family’s future and got me out of a cash flow deficit. With the cost-of-living soaring, alternative housing solutions are gaining traction. Working in financial planning doesn’t exempt me from life’s expenses, but it does give me the advantage of first-hand experience as a Goldsworthy client. I am proof that financial advice can bring confidence and empowerment in major life decisions.
Where it started
Flashback to 2020. COVID hit Australia and Interest Rates were low. My husband and I were renting with our young daughter. The Government’s 5% low deposit scheme got us into the housing market with a Bayside townhouse for under $400K. We started with a 3 year fixed home loan rate of around 2%. Plus, we had money in the bank too. We were ‘living the dream’.
Where it unravelled
Over the next 4 years it felt like our dream was crumbling. I had time away from work as our family grew and we needed a bigger car. Interest rates started increasing and we came off our fixed period from 2% to 6%. Home maintenance demanded attention, emergency cash disappeared and we couldn’t save or put money aside for our children’s future. That ‘dream’ had changed to a cash flow deficit problem.
It was emotionally exhausting because we were always watching the dollars and worrying about the future.
The secret weapon
However, while our cash flow was fading, the value of our property was increasing and did by over $200K. How awesome! Except, it wasn’t helpful for our current situation. Our personal loan serviceability didn’t meet the bank’s requirements to pay a larger mortgage so we could borrow. Therefore, we felt stuck. BUT, equally grateful to have this home which would eventually give us options.
Meanwhile…
While all of this was happening, I had started a FREE government funded Diploma on Sustainable Living online through the University of Tasmania, as a personal passion project. It’s here that I did my first subject on Sustainable House design and my first Assignment on Tiny Home Living. I didn’t know it then, but a seed was planted.
Throughout 2024 – a few things started to come into play, which started to paint a picture of where the universe was pulling us as a solution to our cash flow deficit.
‘Thing 1’ – my husband received a salary increase that improved our loan serviceability.
‘Thing 2’ – friends of ours with 8 acres in the Noosa Hinterland ‘joked’ about us living on their property with them. Then the joke became a real offer.
‘Thing 3’- my grandmother passed, and I reminisced a lot about school holidays spent at their Toowoomba property over this time. I felt a pull towards that lifestyle for my kids too.
It was time to run the numbers with my Adviser while also working very closely with our Mortgage Broker, and this is where the value of advice really comes into play. It helped cement a plan, turning it from a dream to something real!
We were going to build our own Off Grid Shipping Container Tiny Home! (Google it!)
Financial Advice helped us:
- Keep our Bayside property as a long-term security strategy – it is slightly negatively geared, which means the expenses are marginally greater than the income, so that is providing some much needed tax relief for us as well keeping our foothold on the property ladder in the sought after south east Qld region
- Budget and manage new financial responsibilities as landlords
- Build future savings for our girls by using some of our surplus cashflow to establish new Investment Bond accounts to secure long-term growth for our children’s future – they are going to need it!
Where it ended – happily ever after Tiny Home Living
- COST – our build cost just 10% of the average price of an inner city home in Brisbane at the moment.
- SERVICES – We have no electricity or council water bills and live completely off grid which reduces our utility expenses.
- DEDUCTIONS – The rent we receive from our Bayside home covers 80-90% of our new refinanced mortgage and we have deductions that will work in our favour at tax time.
- COMMUNITY – Shared living has reduced our ‘parenting anxiety and stress’- the kids play together and we share the school run and weekend mealtimes.
- TIME – We can clean and tidy in under 30 minutes. More time back for fun!
- SUSTAINABILITY – our family’s carbon footprint is significantly less and we have space to grow food and improve that.
- COMMUTING – I visit Brisbane once a week to maintain my shared role on Goldsworthy Reception. I see my team and have ‘sleepovers’ with my parents and friends. My husband does the same, but fortnightly. The drive itself? That’s what podcasts, audiobooks and long phone chats are for.
- CASH FLOW – It’s back!! We can finally save! Bring on holidays, date nights, activities and being spontaneous!
The future is flexible!
In conclusion, conversations around alternative living arrangements are coming to the surface. Living in shared communities is how life used to be. Somewhere along the way modern day society altered expectations, however the same modern day financial pressures are making way for ‘old school’ living arrangements once more. Granny flats and tiny home options are growing in popularity, generational living is back on the table. ‘It takes a village’ comes from a place of truth.
Tiny Home Living has been a game changer for us. Our family unit is stronger and we are ‘wealthier’ in many ways we weren’t before. The combination of receiving experienced financial advice, having a mortgage broker in our corner and being open to alternative living solutions has provided us with a new lease on life. I can’t tell you how happy I am – actually, yes I can. I am very, VERY happy.
IMPORTANT INFORMATION: Goldsworthy Private Wealth Pty Ltd ABN 24 657 947 101 Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee and Australian Credit Licensee., based on our understanding of the relevant legislation at the time of writing. While every care has been taken, Goldsworthy Private Wealth Pty Ltd makes no representations as to the accuracy or completeness of the contents. The information is of a general nature only and has been prepared without consideration of your individual objectives, financial situation or needs. Before making any decisions, you should consider the appropriateness for your personal investment objectives, financial situation or individual needs. We recommend you see a financial adviser, registered tax agent or legal adviser before making any decisions based on this information.
