Are you thinking about investing in a manufactured home? If so, you’re not alone. A growing number of people are investing in these homes, thanks to the many benefits they offer. But is now the right time to buy?
In this blog post, we’ll take a look at the pros, cons and considerations of investing in a manufactured home. By the end, you’ll be able to make an informed decision about whether this type of home is right for you.
At MY SMART COUSIN, we help you take the first step in Real Estate Investing. We help new property investors and aspiring home buyers, use our step-by-step approach to conceptualize, fund, and buy their property. As seasoned Real Estate Investment coaches we help you identify and penetrate the still-lucrative housing market, and expose you to various financing strategies, whether you’re seeking to buy a multifamily or commercial property, a traditional single family property, or a manufactured home. Manufactured homes have several features that differentiate them from traditional single family properties— let’s dig in to learn more.
WHAT ARE THE PROS AND CONS OF MANUFACTURED HOMES COMPARED TO TRADITIONAL HOMES?
If you’re in the market for a new home, you might be wondering whether a manufactured home is right for you. Manufactured homes have come a long way in recent years, and they now offer many of the same amenities as traditional homes. However, there are also some important differences that you should be aware of before making your decision.
Here are a few of the pros and cons of manufactured homes compared to traditional homes:
· One of the biggest advantages of manufactured homes is that they can be built much faster than traditional homes. This is due to the fact that all of the components are factory-made and then transported to the building site. Once delivered to the building site, the assembly of the home can occur in a matter of days following the pouring and setting of the concrete foundation. As a result, you can move into your new home much sooner than if you were building a typical stick-built or frame home, which can take three to six months to build.
· Another advantage is that manufactured homes tend to be more affordable than traditional homes. This is because mass production of the homes creates economies of scale, which can lower the production costs of the property. Additionally, manufacture of the property in a factory can improve quality control, another cost saver.
However, there are also a few disadvantages to take into consideration.
· One potential downside is that manufactured homes can sometimes be less energy-efficient than traditional homes. Older manufactured homes in particular, can be prone to drafts and higher energy costs if there insufficient insulation, or not enough skirting around the bottom of the house.
· Additionally, manufactured homes may not appreciate in value as much as traditional homes. In this regard, a manufactured home can be more like a car in terms of depreciating in value the moment it leaves the factory floor rather than appreciating in value. This is something to keep in mind if you’re planning on selling your home in the future.
Overall, there are both pros and cons to consider when deciding between a manufactured home and a traditional home. It’s important to weigh all of the factors carefully before making your decision.
HOW HAVE MANUFACTURED HOMES CHANGED OVER THE YEARS, AND WHAT NEW FEATURES ARE AVAILABLE NOW?
When most people think of manufactured homes, they picture a double-wide trailer parked in a trailer park. While this may have been the reality fifty years ago, manufactured homes have come a long way since then.
· Today’s manufactured homes are built to high standards, with many of the same safety standards, architectural features and modern conveniences as site-built homes. The relatively new tiny-houses that are growing in popularity are one example of how manufactured homes are branching out in new directions. Besides coming in a ranges of sizes, manufactured homes can be built with various materials and finishes, enabling the buyer to customize the home much like a traditional house.
· In addition, new features such as energy-efficient windows and even solar panels are now available, making manufactured homes more sustainable than ever before. As the quality and features of manufactured homes continue to improve, they are becoming an increasingly popular option for homebuyers across the country.
ARE THERE ANY TAX BENEFITS TO OWNING A MANUFACTURED HOME, OR ANY OTHER INCENTIVES THAT MAKE THEM ATTRACTIVE INVESTMENTS?
Many people dream of owning their own home, but the high cost of traditional houses can make that dream seem out of reach. Manufactured homes offer a more affordable option, and they can also be a wise investment. In some cases, owners of manufactured homes may be eligible for tax breaks.
Additionally, manufactured homes qualify for the same types of homeowner mortgages as site-built homes, enabling home buyers to use a VA loan, FHA loan or USDA loan to make their purchase.
Lastly, manufactured homes can be easier and cheaper to maintain than traditional houses, particularly homes that sit on a small footprint in a manufactured home community, dramatically cutting back on yard work.
For all these reasons, manufactured homes offer an attractive option for those looking for an affordable investment.
WHAT ARE SOME OF THE RISKS ASSOCIATED WITH OWNING A MANUFACTURED HOME, AND HOW CAN YOU MITIGATE THEM?
· One of the biggest risks is that if the home is in a manufactured home community, then the land is not owned by the homeowner, it is rented from the community owner. The rent often covers water, sewer and common property features such as landscaping and upkeep. However, rent of any kind means that the homeowner is at risk of escalating prices.
· A related challenge is that the cost to insure manufactured homes can be higher than the cost for a stick-built property. Of course, if the manufactured home is not permanently connected to the foundation and is instead still a mobile home, the homeowner can transport the house to a different location if the costs of the land become too high.
FINAL THOUGHTS
So, are manufactured homes a good investment? The answer to that question depends on your personal circumstances and preferences. But with all the new features and benefits available now, it’s definitely worth considering if you’re in the market for a new home. And as more and more people are choosing them over traditional housing options, it seems likely that the market for manufactured homes will only continue to grow in years to come. If you’re ready to invest, we can help you find the perfect home for you. Give us a call today!
