Purchasing real estate is generally a good investment, whether it is undeveloped land, traditional site-built/stick-built homes, or manufactured homes. Read our guide on mobile home vs. stick-built to learn which is more cost-efficient.
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 from those of yesterday. Learn the answer to: “should I buy a used manufactured home” here.
Investors/buyers are changing their tune when it comes to what is manufactured housing due to:
● Fully-Customized Kitchens
● Ample Storage
● Rooftop Decks
● and more…
Read on to learn the answer to…
Is Buying a Manufactured Home a Good Investment?
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 luxury that costs less, buying a manufactured home is a great way to expand your portfolio, while still being low risk. As a result, you can purchase several manufactured homes, and still come out on top. Learn some tips for buying a manufactured home here.
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. This way you can 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 into a manufactured home, from say a traditional site-built/stick-built house, 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
With the energy-efficient technology and appliances in manufactured housing, you can reduce your carbon footprint. Plus, today’s manufactured homes are more environmentally friendly as they use less power and can even have customized solar panels or green-energy tech installed.
What is more, manufactured homes still offer high-quality features that rival traditional site-built homes. Similarly, custom-built mobile and manufactured homes, in general, tend to use less building materials and have minimal construction waste.
Maintenance and Repair Costs
Another reason why buying mobile homes is a good investment for you is because routine maintenance and repairs are relatively inexpensive.
Since you are buying the modular 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 stick-built home. Learn some manufactured home maintenance tips here.
Part of a Community
For people looking for a luxury home that costs less, manufactured homes are great options, especially if qualifying for a sizable mortgage right now is just not in the cards. Learn about manufactured home financing and chattel financing options here.
Furthermore, a good portion of affordable luxury mobile homes are located in mobile home communities (see our top 10 manufactured home communities in Michigan). 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 mobile home park or two in your area. You will see that there are:
● Community Centers
● 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+ years of age. Learn more about the benefits of a mobile home land-lease community here.
Appreciation on Land
Alternatively, if you are looking to buy a manufactured home with land, you will be glad to know that it being affixed to real estate property, i.e. on permanent foundation, makes your mobile home a good investment because it will 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. Learn how to increase the value of a manufactured home here.
Speaking of mobile homes, a good investment means good resale value, and newer manufactured homes tend to do well.
For instance, pre-owned mobile homes tend to increase in value over time, just as site-built homes do. In contrast, brand new manufactured homes 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. So, how much does it cost to move a manufactured home? Learn here.
Good Value for Price
Mobile homes are also a great deal/value for the price. Think about it, most manufactured homes, which are built in a factory, have up to four bedrooms, but are half the price of most two-bedroom stick-built traditional homes. Learn how double-wide mobile homes are built here.
For real estate investors, particularly, the low costs associated with manufactured homes are too good to pass up. Consequently, many real estate investors choose to build even larger manufactured homes 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. Learn more about why manufactured homes are becoming more popular here.
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 financing options and limited design schemes, but these are obstacles that you can certainly 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 building codes and the U.S. Housing and Urban Development (HUD Code for manufactured homes).
Note, if your manufactured residence is located in a mobile home park, you will also have to have add-ons approved by them as well.