Investing in any type of real estate is all about earning passive income for most investors. With the real estate market’s diverse portfolio, it is one of the hottest destinations for investors who are aiming to put their money in both medium and long-term investments. Having said that, due to the increasing price of conventional homes, small investors are eying the mobile home market.
As prices continue to rise in the real estate market, apartment home rents are near an all-time high, and interest rates for traditional mortgages creep up to levels we have not seen in years one needs to think more about an affordable housing option.
There are many reasons why manufactured homes make great investments. For one, they are much more affordable than traditional stick-built homes, and they can be just as comfortable and stylish. Additionally, mobile homes appreciate at a much faster rate than stick-built homes, so your investment will grow more quickly.
Another big advantage of mobile homes is that they can be moved if you need to relocate. This means that you can take your home with you if you get a new job in a different town or city, or if you simply want to live in a different area. This flexibility is incredibly valuable, and it means that you won’t have to go through the hassle and expense of selling your home and buying another one every time you move.
Finally, mobile homes are much easier to finance than traditional homes. Because they are cheaper and faster to build, lenders are typically more willing to finance mobile homes than traditional homes. This makes it easier for you to get the financing you need to purchase a manufactured home, and it also means that you can get a lower interest rate on your loan.
But, with this thought, does one even exist?!
The answer, without a doubt, is yes!
Enter the world of mobile homes!
For the longest time mobile homes have been the pillar of affordable housing within the United States and now, more than ever, it stands head and shoulders above all other housing options when looking at affordability and how a Buyer can get the most bang for their housing buck.
Today, we want to discuss with all our readers the 5 reasons why mobile homes in and around the state of Florida are great investments.
- Affordable
Buying a house like a single-family home requires a considerable amount of money. Mobile homes cost much less. There are mobile homes that cost only a few hundred dollars per month if you’re financing one unit and putting a handsome amount of money on the downpayment.
As mentioned above, with all other housing options skyrocketing throughout the economy where else can one buy their own stand-alone home for the cost of an average used car? Not only that but when buying a mobile home within a mobile home park many parks offer the vast majority of the utilities and maintenance fees associated with owning a home in one payment called lot rent. Here, lot rent will usually cover the residents’ water, sewer, trash, lawn care, and usage of amenities such as the pool, clubhouse, dog parks, and workout facilities.
Where else in this economy can one have high-end amenities all paid for and taken care of for one low monthly fee?!
2. Tangible
When renting an apartment home the rent that is paid each month goes to the landlord or apartment complex. At the end of the rental period, there is nothing to show for this other than a paper invoice.
When owning your own mobile home you, as the owner, have something you can sell to recoup your expenses for living.
3. Easy To Maintain
As discussed in previous blogs, a mobile home has a much different structure than that of a single-family home. Many of the differences are in the wall, flooring, and roof structures.
When something needs to be fixed to one of the major components of a mobile home it is far less expensive to fix than that of a single-family home.
4. Say The Same Price
Most mobile homes do not gain much in value, likewise, they do not lose much in value either. The nice part about this fact is that by having the price stay around the same will help you, as the Buyer, to better estimate the cost of a mobile home when looking to purchase one in the future.
Keeping your costs set when buying a mobile home will help with your budgeting.
5. Cash Purchase
Most mobile home purchases are done within a cash transaction. With cash transactions being the main way how these homes are sold it avoids the extra expenses and time associated with the purchase or sale of a single-family home which normally has a mortgage associated with the ownership of the home.
Cash transactions will help the owner of the home buy or sell the property faster and for less money than a home with a traditional mortgage attached to it.
In addition to the five reasons mentioned above, another reason that many mobile home detractors always ignore is the STEADY DEMAND for mobile homes.
Although the demand for mobile homes can vary from state to state, there is always a steady demand for mobile homes in Sarasota Florida, especially during the winter season when people from the North flock down South to run away from the cold winter
Nonetheless, the data from Manufactured Housing Institute states that:
- 22 million Americans live in mobile homes
- 62% of residents expect to stay in their mobile homes for at least 10 years
- 90% of mobile homeowners are satisfied with their dwelling
These numbers prove that the demand for mobile homes as an affordable housing option cannot be ignored, especially in states like Texas, Florida, Alabama, and Tennessee.
If you are planning to invest in a mobile home and have money to buy, especially cash, don’t listen to naysayers. Mobile homes are here to stay and will only continue to get more popular as more people are looking for cheaper but more comfortable housing options.
When looking at all living situations one can partake in we highly suggest everyone take a long look at owning a mobile home as the cost savings, ease of maintenance, and speed of the transaction are all aspects that put the mobile home option at the top of affordable housing!
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.
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