If you can’t afford your dream home just yet and your life can’t fit into a condo, it may seem you’re out of homeownership options. Not so fast. Manufactured homes are a more affordable option that give you space without the same price tag as a traditional stick-built home.
But are manufactured homes really a good investment? Can you build equity? Or are they a good option for people on a budget who want to break even? Let’s talk about it. After all, anything is better than renting when it comes to seeing a return on your housing costs.
What are manufactured homes?
Manufactured homes are constructed in a factory and then assembled later on a plot of land. They usually sit on concrete blocks and can circumvent some of the housing code requirements that traditional and modular homes are bound by. But, that doesn’t mean they aren’t safe. These days, manufactured homes can also be very customized. You can pick out everything from counters to floors and choose between a few floorplan options.
Manufactured homes made before June 1976 are called mobile homes, while any factory-made homes constructed these days goes by the modern moniker.
What are manufactured home expenses like?
Like any home, you’ll have to pay for repairs for a manufactured home. These homes can require anything from a new roof to an HVAC repair. Since manufactured homes often sit on concrete blocks (and never have a basement), you may also have to deal with fixing complicated foundation homes if the property starts to sink. For the most part, however, your housing expenses won’t be more burdensome than owning another type of home. If you live in a manufactured home park, you’ll also be responsible for the lease on your spot, often assessed monthly.
The main downside to buying a manufactured home is that many banks won’t offer a home loan to finance them. You will need to find alternative funding like a personal loan or pay with cash.
Are manufactured homes a good investment?
It’s harder to build equity in a manufactured home vs. a traditional home. For one, the limited financing options mean you’ll probably pay a higher interest rate on your loan. Plus, every buyer isn’t open to a manufactured home. You may find that the pool of potential buyers is smaller than if you had a similarly sized stick-build home. That being said, if you can maintain your property well and offer appealing amenities, you may be able to turn a profit on a manufactured house later on.
Can I sell a manufactured home?
Yes. As the owner of a manufactured home, you can sell it to a new owner. Your best bet may be to sell it to an investor who wants to rent it out. This can maximize profit. On the other hand, you may also find a person who wants a single-story forever home who loves the idea of a manufactured property.
At California Family Homebuyers, we may be able to purchase your manufactured home or refer you to someone who is in the market for this type of property. Give us a call today if you have a manufactured home that you want to turn a profit on!
