Yes, overall living in an RV is usually cheaper than living in a house. However, this can be specifically affected by a variety of factors such as: where you live, your lifestyle, your spending habits, and so on.
As caravans have become more and more popular in recent years, and as the cost of living within a house has risen further. More and more young people are beginning to consider: should they choose to live in an RV full time? Will this reduce my cost of living? This article will help you analyses the questions and find the answers from a variety of perspectives.
1. What are the costs of living in an RV full-time?
The popularity of RVing has made many young people want to choose full-time RV living, but what are the costs of living full-time in an RV? Aside from eliminating the cost of purchasing real estate, what are some of the ways that full-time RV living can save us money? Here is a breakdown of the costs of full-time RV living.
Cost of Buying an RV
The cost of purchasing an RV is greatly influenced by factors such as the size of the RV, the capacity of the RV, and the level of luxury of the RV. If you go for the most basic travel trailer or camping RV, the price will be around $1,0000, and if you are looking for a premium RV with high end finishes and smart power supply, the price may go up to $50,0000-$60,0000.
Most young people go into RVing with the intention of wanting to save on their cost of living, and aside from small travel trailers, you also have the option of buying a used RV. Due to the high initial depreciation rate of RVs compared to many other types of vehicles, a brand new RV can depreciate a staggering 30-50% in the first 5 years of purchase, which can go a long way to minimizing the upfront cost of purchasing an RV. It is worth noting, however, that used motorhomes are not as favorable as brand new motorhomes, both in terms of longevity and the maintenance costs that need to be paid at a later date. It’s up to the buyer to take their financial situation into account and make a choice.
Of course, you can also choose to purchase an RV with a mortgage, with the same procedures as when purchasing a property with a mortgage. If you choose to put $2,000 down on a $20,000 RV and take out a three-year loan to pay it off, with interest rates of 3% up or down, you’ll pay $500-$600 per month.
RV Vehicle Insurance
The exact cost of RV vehicle insurance depends largely on the coverage you choose and the appraised value of your RV. The higher the appraised value of your RV means the higher the cost of insurance you will have to pay, and conversely, the lower the price of your RV, the lower the cost of insurance. Typically, the cost of basic RV insurance ranges from 1,000-3,000 per year, which averages out to $100-$200 per month for vehicle insurance.
RV Vehicle Maintenance Costs
There is also the cost of maintenance and repair of the RV, due to the special characteristics of the RV model, its maintenance and repair services will not only be limited to the performance of the vehicle, but also includes living facilities, energy supply system and so on. Therefore, its maintenance cost is usually higher than the general private car, the average annual maintenance cost of 2,000-5,000 U.S. dollars, that is 200-300 U.S. dollars per month.
Night Parking Campground Costs
The camping fees incurred for parking your RV depend largely on where you park it. If you choose to park at a campground such as an RV park, the nightly rate will be around $20-$50 per night, and you will save around 30% on your monthly payment, which is around $400-$800 per month. Although these specialized campgrounds are more expensive, these RV parks will have facilities for water and electricity, as well as amenities such as garbage collection and disposal areas and laundry rooms, which can make your RV life more convenient.
In addition to this, you can also choose to camp on public land such as national forest parks, which will be completely free, but you will lose your connection to the main power grid and water supply lines, which requires your RV to have an independent and reliable energy supply system as a way of keeping you on track.
The cost of essential living systems
Living in an RV full-time means that you will need to plan for sources of energy such as electricity and water that you may need to use during the course of your life, as well as consider your sewage and garbage disposal needs. For this reason, most RVs will be equipped with the necessary living equipment such as an electrical system.
For the required electricity, you can choose to install solar panels or a fuel engine in your RV. You can also choose to install only batteries and charge them when you enter the campground using a shore power connection, which will incur a cost of $10-$30 per charge. However, batteries don’t have enough capacity for all the loads in an RV, and if you plan to be off-grid for long periods of time, the batteries will run out quickly, so most owners consider installing solar panels to supply their own energy. A full solar system will cost about $2,000-$3,000.
Fuel Costs
In addition to the cost of purchasing an RV, its fuel costs are a relatively large part of the cost of living. If you plan on traveling long distances while living in your RV, then fuel will be your biggest ongoing expense. The cost of fuel for an RV depends largely on the type and size of the RV and the distance traveled. Generally speaking, the average fuel expense per mile for an RV is between $0.20 and $0.60. Of course, if you only think of your RV as a place to live and choose to park it in one place, the expense on fuel will be greatly reduced.
Cost of in-vehicle amenities
In order to be able to live a modern and convenient lifestyle in your RV, you need to make some adjustments to your RV and add some living infrastructure, such as a washer and dryer, Wi-Fi, and a TV, as a way to improve your quality of life.
These equipments together may increase the cost you invested in your RV, generally speaking, the supporting living facilities will bring you an extra $1,000-3,000 dollars to spend. Of course, you can choose to use the washing machine or drying machine in the laundromat or RV park, and access to WiFi in the RV park, etc., but for this, you need to add about $100 per month, which is not cost-effective in the long run.
2. What are the costs of living in a house?
For most areas, the cost of living in a house is more than living in an RV full time.
Down payment on a house
Since the current price of property is too high for most young people, many people choose to obtain a property by taking out a mortgage, paying a portion of the cost up front, and then repaying the interest and loan principal on a monthly basis. For homeowners who intend to purchase a property, you will need to make a one-time down payment on the property before you can move into the house, which can be anywhere from 10-30% of the total value of the property, depending on your financial situation, the rules of the real estate company, etc. The average monthly cost of a mortgage and the interest on the loan is about $10,000 per month.
Average Monthly Costs of Purchasing a Home and Mortgage Interest
For homeowners who buy a home outright, most will take out a mortgage, paying a portion of the price of the home up front and then paying it off in monthly installments. This expense is the largest portion of ongoing expenses and can vary greatly depending on the value of the home you are purchasing, the percentage of the down payment on the home, the year of the mortgage, and other influencing factors, with monthly mortgage repayment costs ranging from $1,000-$3,000, based on current averages.
Property Taxes
Property tax rates vary from region to region, but the average rate is between 1% and 3%, which means that if an organization values your property at $20,000, you will need to pay between $2,000 and $6,000 in taxes.
Home Inspection and Appraisal Costs
The cost of a home inspection is usually paid after you have made a down payment and a professional inspector has inspected the property to determine the safety of the property and the condition of the finishes. For the purpose of needing to inspect the results of the real estate company’s work, most homeowners choose to have a home inspection, with expenses ranging from $200-$800. Next, the organization will need to assess the value of your home as a whole, and based on this value, calculate the amount of property taxes that you will need to pay. The cost of a property appraisal is around $500-$1000.
Home Maintenance Costs
Over the next few decades, homeowners will also need to regularly inspect and maintain their homes, including the condition of the installations. The cost of maintenance will depend largely on the size of your home and the value of the parts that need to be replaced and repaired. Generally speaking, the total annual maintenance cost is between 1% and 5% of the total value of the property. This cost will continue for as long as you live in the property.
Insurance costs
The cost of insurance for your property varies greatly depending on the size of your home, the coverage you choose, and the pricing of the insurance company, but the average cost of property insurance ranges from $2,000-$5,000 per year.
3. What are some ways to help minimize the cost of living full-time in an RV?
While living full-time in an RV can save you a lot of money compared to living in a property, you can still find ways to save even more.
3.1 Buying a used RV
As mentioned above, due to the unique nature of motorhomes, the rate of depreciation and depreciation is much higher than other types of vehicles. While this is a loss for most motorhome owners, for those who want to start the motorhome lifestyle, it means that you can save a lot of money by choosing to buy a used motorhome.
The benefits of buying a used RV are not only in terms of reducing the cost of the upfront investment, but it can also be a good option for people who are looking for an RV with a specific feature, but don’t want to spend the money to do it themselves. However, it is important to note that when purchasing a used RV, make sure you check all aspects of the RV’s performance to prevent being cheated by the owner.
3.2 Consider seasonal campground parking and joining an RV club
Overall, fewer people live in their RVs full-time, and most people use their RVs as a place to live and a means of transportation while traveling. As a result, most RV parks and campgrounds vary their rates with the seasons, and there are generally 3-5 months of the year when camping rates are discounted. You can get convenience and save hundreds of dollars by opting for RV park parking during these months.
In addition to this, you can also consider joining large RV clubs, and typical RV campgrounds offer privileged discounts to members of these clubs.
3.3 Budget your living expenses
In order to save money on your living expenses, it is a good idea to budget all of your expenses. Creating a budget can help you think about whether or not each expense is a necessity before you pay for it, and whether or not you have enough money to cover your regular monthly expenses.
3.4 Learn Basic Vehicle Repair and Maintenance
RV costs can range from $2,000-$5,000 per year for maintenance and repairs, so if you can learn some basic maintenance and repairs, you can save a lot of money on maintenance costs and the hassle of finding a mechanic. Generally speaking, new RVs don’t have major problems, and in the later stages of use, there may be minor problems that require oil changes, tires, etc., which you can completely fix yourself and save a ton of money.
3.5 Learn to cook for yourself
Always eating at restaurants can put a big burden on your expenses, while buying ingredients directly and cooking by yourself can save 40%-50% of your expenses on food. And when you want to go camping away from the beaten track, being able to cook for yourself will go a long way in improving the quality of your meals.
4. What are the advantages and disadvantages of living in a caravan full time?
4.1 Advantages of living in a motorhome full-time
The most significant advantage of living in a motorhome is its mobility, which allows the owner to experience the scenery and characteristics of different regions. At the same time, living in an RV can simplify the lifestyle and save a lot of living costs.
4.2 Disadvantages of living in an RV full-time
The disadvantages of living full-time in an RV are also significant, for example, its limited space is usually only suitable for single person living, followed by the lack of stability and regularity of full-time RV life. It also cuts off most of the owner’s relationships. Overall, full-time RV living is not suitable for everyone.
5. Common problems that may be encountered regarding full-time living in an RV
5.1 Is full-time living in an RV allowed?
First of all, it is legal to live in your RV full-time, but you are required to park and use your RV at all times in accordance with local laws and guidelines.
5.2 How do I ensure that living in my RV full-time is safe?
Some people may feel that living in a caravan full time is not as safe as living in a house. In fact, even living full-time in a motorhome is safe if you follow the relevant safety regulations and take the appropriate precautions. If you are concerned about the safety of living full-time in an RV, you can take the following steps:
First, make sure that safety devices such as smoke detectors as well as fire extinguishers in your RV are in good working order and under warranty. You should also know how to use these emergency devices so that you can save your life in case of an emergency.
Secondly, when choosing a place to park and camp, try to choose a safe area that is readily accessible to the outside world to prevent extreme weather or dangerous wildlife.
Lastly, as the owner needs to live in the caravan for a long time, which is usually equipped with electricity, gas and other supply equipment, you need to regularly check whether there are leaks, and properly maintain the caravan.
To summarize:
living in an RV is cheaper than living in a house, but this lifestyle doesn’t apply to everyone. Real estate can serve as your investment asset, but the value of an RV will only depreciate over time, and that depreciation loss comes quickly and often. If you really want to experience the RV lifestyle full time, we recommend that you review the article and rent an RV for a few months to experience the lifestyle before making a decision.
