If you are thinking about investing your money, then you are probably debating what the best investment route for you is.
There is an endless list of different ways that you could invest your money, from traditional methods, like the stock market, to alternative methods, such as cryptocurrency. So, deciding the best method for you isn’t always the easiest task.
One form of investment that has become very popular is property investment.
While the majority of people choose to invest their money into traditional property, by flipping homes and building rental portfolios, it has also become popular to invest in alternative property too.
From retirement flats to mobile homes, there are all sorts of things that you can invest your money in, and manufactured homes are one of them.
Before you invest in manufactured homes, you probably want to know if it is worth it.
In this guide, we’ll be taking a look at whether, or not, manufactured homes are a good investment, and lots more. So, if you want to find out more about this type of investment, then keep on reading.
What Are Manufactured Homes?
Before we take a look at whether, or not, investing in manufactured homes is a good idea, we need to take a look at what these are. At first glance, a lot of manufactured homes look very similar to traditional homes.
But, the real difference between these two styles of houses is the ways that they are made. Traditional homes are usually built with bricks, timber, or stone, and because of this, it often takes quite a lot of time to build them.
But manufactured homes are built a lot quicker, and that is because they are built in factories and then transported to their final destination.
Manufactured homes, also sometimes referred to as prefabricated housing or prefabs, are homes that are built in factories rather than on the plot of land that they will later reside.
Due to this, the amount of building work that goes on at the site of the house is minimal, and so these houses are able to be built a lot quicker.
Some of the major differences between these homes and traditional houses include the materials used to build them, and the fact that manufactured homes typically are not built with foundations.
Instead, they are anchored to the ground to ensure they remain there, until you wish to remove them.
Are Manufactured Homes a Good Investment?
Typically speaking, yes, manufactured homes are a good form of investment. Especially if you are interested in eventually moving onto traditional property investment.
If you are new to investment, and are looking for somewhere to start your portfolio, without having to blow your budget, then manufactured homes are a good place to begin.
Manufactured homes are cheaper to invest in than traditional housing, and you will be able to get excellent return on your investment, without blowing all the money that you have to invest.
The most common thing that people who are investing in traditional property are now going after is single person housing.
This is because single person housing is pretty affordable, and it is very high in demand, so you can get excellent return on your investment (ROI) if you go down this route.
But, we would argue that investing in manufactured homes is a better option. Even high-spec manufactured homes will be cheaper than traditional single person housing, and they will be better quality too.
This is why we think that manufactured homes are an outstanding investment route, especially if you are new to property investment.
Do Manufactured Homes Ever Go Up in Value?
So far, we have agreed that manufactured homes are very similar to traditional homes in a lot of ways. But from a financial perspective, there is one major difference between the two, and that is value.
A lot of people choose to invest in traditional homes because generally speaking, they only really appreciate in value.
The property market is usually on the rise, so most of the time, when you invest in a house, you will make your money back, and more, when you sell. But, this isn’t the case for manufactured homes.
As manufactured homes are built differently from traditional homes, they do not gain value in the same way that traditional housing does. In fact, most of the time, the value of a manufactured home will not increase.
Instead, it will depreciate. But, when you invest in manufactured homes, you generally do not invest with the idea of selling in the distant future.
Most of the time, you will invest in these homes to either sell them on quickly, or to build a rental portfolio. Either way, you will not be impacted by the manufactured homes depreciating in the future.
Things To Consider When Buying A Manufactured Home
Before you decide to go down the route of investing in manufactured homes, there are some things that you need to consider.
While there are lots of minor details that you will need to think about before you begin buying manufactured homes, there is only really one major consideration that you have to think about. This is whether you should buy new manufactured homes or used manufactured homes.
There are pros and cons to both of these options, and ultimately the best choice for you will depend on how easy you want the process to be.
In terms of affordability, used manufactured homes will be the better option because you will be able to purchase them at a much lower cost than new homes.
But, there is a much greater risk with buying used homes because without viewing them, you will be unable to know what condition they are in. If you buy a used manufactured home, then you might have to do some work on it yourself in order to make it habitable, and that is why a lot of investors instead choose to buy new homes.
These will be more expensive, but it will give you the opportunity to customize the buildings, and ensure they are at top quality.
Reasons To Invest In Manufactured Homes
As you can see, there are lots of great reasons why you should invest in manufactured homes, but not all of these reasons are connected to the financial benefits of this.
As well as manufactured homes being low cost to buy, allowing excellent ROI, they offer lots of great benefits too. Let’s take a look at what they are.
One of the other key benefits of investing in manufactured homes over traditional homes is how quick and easy they are to get started with. Manufactured homes are designed to be quick and easy to install, so once you invest your cash, you will quickly see results.
From start to finish it rarely takes longer than 3 months to build and install a manufactured home, and once it is in, you will be able to start making money right away.
As well as being quick, they are also low risk in terms of construction. So, with manufactured homes you don’t really need to worry about construction delays, you should be able to work tightly to your schedule.
But, the main reason why so many people are falling in love with manufactured homes is because they are much more eco-friendly than traditional houses. There is now a huge focus on the environment and taking steps to care for it, and manufactured homes can help this.
Due to their design, these homes are energy efficient, so they are much greener than traditional homes. So, your investment will actually be helping make the planet a better place.
Frequently Asked Questions
Are Manufactured Homes Profitable?
Yes, manufactured homes are profitable! That is assuming that you buy good quality manufactured homes at low costs, and then make improvements to them.
If you do this, then you will be able to charge a higher amount when selling/renting these homes, which will make them profitable.
Can You Remodel A Manufactured Home?
If you want to remodel a manufactured home, then you definitely can. In fact, this is one route of investing that a lot of people are starting to go down.
If you want to invest in manufactured homes, but also want to flip houses, then remodeling homes will allow you to do this simultaneously.
You will be able to strip out the manufactured home and completely remodel it, giving it a new lease of life, and giving you a much higher profit margin.
What Is The Lifespan Of A Manufactured Home?
There is no set lifespan for a manufactured home, and this is because it will ultimately depend on the maintenance of the manufactured home.
Generally speaking, a manufactured home will last for anywhere between 30 and 55 years. The lifespan for most manufactured homes will fall somewhere in the middle of these.
As long as you take good care of the manufactured home, and ensure that it is good quality when you purchase it, then these homes can easily last for many years.