I Sold My Home And Bought An RV: Here’s How Much I Am Saving
Ever dream of just walking away from it all and driving off into the sunset?
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The RV lifestyle offers such a promise. And in many ways, it delivers — but it also comes with its share of drawbacks.
Before selling all your worldly possessions to hit the road as an RVer, consider the savings, costs, and other pros and cons.
Save on Housing Costs
“The amount of money you can save by living in an RV full-time or part-time can be significant,” explains Noah Guthart, COO and founder of Panacrypto. “I’ve seen clients save anywhere from $1,000 to $2,500 a month by cutting out traditional housing costs.”
And it makes sense. You ditch your rent or mortgage payment and replace it with an RV loan payment or rent. Dudi Shamir, founder of Proven House Buyers, says, “The average monthly RV rental costs around $400-$600. If you were to sell your home and live in an RV full-time, you could potentially save around $8,000-$12,000 per year in mortgage payments alone.”
The annual savings don’t stop with the loan payments, however.
Save on Property Taxes & Insurance
Without a house, you skip property tax bills and homeowners insurance premiums.
Granted, you still have to insure the RV. But with lower replacement costs come lower insurance premiums. And you may even be able to get rid of a car, avoiding that set of auto insurance in the bargain.
Save on a Car Costs
When a couple moves into an RV full-time, do they also need two other vehicles?
They can potentially get rid of one or both of their cars, and save tens of thousands each year in the process. Owning a new car in the US costs over $12,000 a year, between car payments, insurance, repairs, maintenance, gas, and parking.
Sell one of your cars and hitch the other to the RV. Or just use the RV as your transportation and call it a day.
Save on Utilities
“Living in an RV often means lower utility costs,” says real estate broker Colten Claus. “Many RV parks include water, sewer, and sometimes electricity in their lot fees. Monthly utility costs can be $100 to $200 compared to $200 to $400 for a traditional home.”
Plus, as an RVer, you can follow the mild weather to save on heating and cooling costs. “Even part-time RV living can help you avoid high utility bills and maintenance costs associated with your permanent home during peak seasons.”
Save by Minimizing “Stuff”
Mike Kotler, CEO of Move Ahead Homes, points out another oft-ignored benefit. “Minimalist lifestyle encourages decluttering.” Not only do you get rid of old items taking up space in your home, but you simply don’t have the room to buy more stuff.
Shopping temptation: nullified.
“This approach can help cut living expenses in the early retirement years by not only reducing mortgage or rent payments but also enabling a simpler, debt-free lifestyle.”
Factor in the Costs
While you avoid home repairs and maintenance as an RVer, you still have to maintain and repair the RV.
You don’t have to drop $25,000 on a new roof. But you also take on the costs of engine maintenance. “While RVs are designed to be self-sufficient, they still require regular maintenance to ensure they’re running smoothly,” notes Shamir.
Guthart adds, “While these are generally lower than home maintenance costs, they can still add up, especially if you’re traveling frequently and putting more wear and tear on your vehicle.”
The costs don’t end there, either. “In addition to maintenance, factor in costs like campground fees and fuel,” advises Ty Fischer, founder of TotalSoCalHomes.com.
Other Pros & Cons
Money matters, but it’s not everything. The RV lifestyle comes with some other pros and cons to consider.
Fischer continues: “Living in an RV offers unique advantages, such as the freedom to travel and explore new places without the constraints of a fixed location. It provides a minimalist lifestyle, and living in an RV fosters a close-knit community among fellow travelers and promotes a more eco-friendly way of living by reducing energy consumption and waste.
“However, there are also challenges to consider. Space is limited, which can make daily activities and storage more difficult. The lack of a permanent address can complicate matters like receiving mail and accessing healthcare. Additionally, living in an RV can sometimes lead to a sense of isolation, especially in remote areas without reliable internet or cell service.”
Noah Guthart notes, “Finding reliable and affordable places to park can be a challenge, particularly in popular tourist destinations during peak seasons.”
Still, it offers a great way to save more money now to put toward retirement investments and also a way to save money in the early years of your retirement. Just beware that you probably won’t want to live in an RV when you’re 85, so plan to return to a permanent home at some point in retirement.
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This article originally appeared on GOBankingRates.com: I Sold My Home And Bought An RV: Here’s How Much I Am Saving
