Purchasing real estate is generally a good investment, whether it is undeveloped land, traditional houses, or manufactured homes. That said, if you are looking to invest in or buy a manufactured home, but are on the fence about it, then you have come to the right place. In the past few years, manufactured homes have been very much in demand for a variety of reasons.
In fact, one reason in particular is because they are becoming more of a lucrative investment. This is not too surprising as today’s mobile homes are completely different than those of yesterday. With energy-efficient features, fully-customized kitchens, ample storage, rooftop decks, and more, investors/buyers are changing their tune when it comes to this particular kind of housing. To better assist you in your decision, let’s go over the various reasons why mobile homes are good investments.
Low Risk and Less Competition
In addition to offering affordable luxury, buying a manufactured home is a great way to expand your portfolio while still being low risk. As a result, you can purchase several houses and still come out on top. In fact, if your sole purpose for buying a manufactured home is to capitalize on profitable investment opportunities, then it is highly recommended that you buy more than one, if you are looking to spread out your potential losses.
Moreover, as an investor in a manufactured home, you will quickly notice that there is less competition. Despite the recent increase in demand, traditional real estate investors are still a little wary of purchasing mobile homes. This means there are even more opportunities for you, if you play your cards right.
Downsize and Reap the Benefits
On the other hand, if you are looking for a manufactured home for yourself, then a mobile home is a great investment because it allows you to declutter and downsize. Typically, when people buy a mobile home, they are looking to live a more simplistic or minimalist lifestyle. Thus, moving from say a traditional size house to a smaller manufactured home provides homeowners with the opportunity to get organized. Most soon-to-be mobile home residents are able to sell unwanted or barely used furniture and donate to Goodwill. As a result, you can make a little money on the side or have a handful of tax write-offs for next year.
Energy Efficient and Environmentally Friendly
Furthermore, with energy-efficient technology and appliances, you can reduce your carbon footprint. Plus, today’s manufactured residences are more environmentally friendly as they use less power and can even have customized solar panels or green-energy tech installed. What’s more, manufactured homes still offer high-quality features that rival traditional or conventional houses. Similarly, custom-built mobile residences and manufactured homes, in general, tend to use less building materials or have minimal construction waste.
Maintenance and Repair Costs
Another reason why purchasing a mobile residence is a good idea for you is because routine maintenance and repairs are relatively inexpensive. Since you are buying the manufactured home outright, you are responsible for its upkeep and repairs. The good news is common electrical issues, plumbing repairs, and so on will cost you a lot less than if you had the same problems with a conventional-sized house.
Part of a Community
For people looking for an affordable luxury home, manufactured homes are great options, especially if qualifying for a sizable mortgage right now is not in the cards. Furthermore, a good portion of affordable luxury mobile homes are located in mobile home communities. This means that as a mobile homeowner, you now have access to communal amenities, plus you are actually a part of a real community. Of course, you do not have to take our word for it. Stop by a few manufactured home communities in your area. You will see that there are community centers, playgrounds, swimming pools/outdoor recreation areas, lush landscaping, management sponsored events, and more. Note, there are also age-restricted mobile home communities which offer activities and other perks that are specifically designed to meet the needs of individuals who are 55+.
Appreciation on Land
Alternatively, if you are looking to buy a manufactured home with land, you will be glad to know that mobile residences that are affixed to property actually appreciate in value. Therefore, you have home equity here and will more than likely be able to resell your mobile home down the road for more than you originally purchased it for. Even if your future mobile home is not affixed to property, you can still make a few upgrades here and there, which will likely ensure that you will make back what you put into the home.
Speaking of your mobile home’s resale value, newer manufactured homes tend to do well. For instance, pre-owned mobile homes tend to increase in value over time, just as traditional/conventional houses do. In contrast, brand new manufactured residences that need to be set-up or relocated tend to cost a pretty penny. Thus, you are less likely to make back all that you spent to purchase, set-up, and move your mobile home at the time of resale. Nevertheless, you may want to consider simply relocating your newer mobile home instead of selling it, if you are looking for the most cost-effective way to move/live somewhere new.
Good Value for Price
Mobile homes are also a great deal/value for the price. Think about it, most manufactured homes have up to four bedrooms, but are half the price of most two-bedroom stick built homes. For investors, particularly, the low costs associated with manufactured homes are too good to pass up. Consequently, many investors choose to build even larger manufactured residences due to the low price per square footage.
Depending on the location, you will notice that some manufactured homes make better long-term investments than others. As briefly mentioned, one of the main reasons some mobile homes fare better in certain areas rather than others is because the stigma of owning a portable residence is still present. That said, as this particular type of housing becomes more and more popular, or widely accepted, it is only a matter of time before manufactured homes are viewed as amazing long-term investments across the country.
Overall, purchasing a mobile home is a good investment. If you are looking to buy a few mobile residences, and rent them out, now is a good time to strike. Similarly, if you are considering a manufactured home for yourself, but are wondering if it is the right move, then stop.
There are a few disadvantages to purchasing a mobile home, like more strict lender requirements and limited design schemes, but these are obstacles that you can overcome. In the last few years alone, mobile housing has become more mainstream, which has caused lenders to ease up a little on their tough requirements. Moreover, mobile homes are customizable, and add-ons just need to be approved by the local authority/municipality. Note, if your manufactured residence is located in a mobile home community, you will also have to have add-ons approved by them as well.
Ultimately, if you have read this far, you should know that buying a mobile home is worth considering. With that said, if you have general questions about investing in a mobile home, then a local manufactured home dealer or retailer should be able to assist you further.