Is a Manufactured Home a Good Investment?
Many potential home buyers never consider manufactured homes for purchase because of preconceived notions of the “mobile home” of long ago. One conception that has been passed down from generation to generation is that mobile homes are like automobiles: “They depreciate.” That characterization has not been accurate for many years, yet that myth is still prevalent with those that have not explored the realities of the manufactured home of today.
I have written extensively about this prevailing myth vs reality that continues to permeate the minds of would-be manufactured homeowners. The reality is that a manufactured home is generally a great investment. Appreciation of both manufactured homes and site built homes are affected by the same factors: the stability of the community (subdivision, neighborhood), supply and demand in the local market, type of home, how the home is maintained, and location. If all factors are equal, today’s manufactured home can appreciate in the same way as a site built home.
Sited On Private Property
The return on your investment in a manufactured home is determined by all of the aforementioned factors, however, location is probably the most influencing consideration in determining the amount of return on investment. How the manufactured home is sited is also important. If placed permanently on private property the manufactured home will become an affixture to real property, and the home value will be assessed in the same manner and equal to a comparable site-built home.
Sited In A Land-Lease Community
A manufactured home placed in a land-lease community, also known as a mobile home park, is evaluated as personal property with the land not considered in that evaluation. However there are numerous instances where a manufactured home will certainly increase in value over time. The location of the community and the supply and demand of affordable housing are the determining factors in appreciated value.
If the manufactured home is sited in a well-maintained community with resident amenities, located in a geographical area where people desire to live where affordable housing is not available, the resale value of a manufactured in this area will undoubtedly increase in value upon resale.
I recently posted a blog article on this web-site titled: RESALE MANUFACTURED HOMES ENHANCE “THE GOOD LIFE” IN SOUTHERN CALIFORNIA. The large return on investment, as noted in this article, is only possible if the resale home is located in an area where real estate is limited, all housing is expensive, and situated in an area where homeowners want to live.
Investment Return Compared To Site-Built Homes
Manufactured homes are equal and, in many respects, superior to stick-built homes, not only in quality of construction, but also, in the appraised value that dictates the return on investment. Moreover, they are subject to the same factors used to determine that value. This is reality!
Site home builders and sellers love to perpetuate the myth: “A mobile home depreciates.”
(Photo via Weneedahomeinfo.com )
Photo via: Fortikur
