Is Buying A Mobile Home A Good Investment?
Mobile homes are factory-built living spaces. It is assembled in a factory and is then transported to a site. The shape, size, and other specifications of a mobile home may vary according to the demand of the area where it is set up. People use mobile homes for vacations, rental property, or even residence. The question about mobile homes as an investment is still hot and under speculation. There are various aspects of a mobile home like:
- What are your financial goals?
- Will you rent a place for the mobile home or buy the land?
- What use would you want to put it into?
- Are you going to buy a new one or a second-hand mobile home?
- If you are planning to use it as your residence, what is your current living situation?
These questions will help you to do an overall analysis of the situation. The decision of buying a mobile home has a lot of different views to it. The financial and real-estate value of this investment is one major area you should be looking into before deciding on the investment.Concerning this, there’s a list of pros and cons which will help you in making the decision of your investment much easier.
- If you have a small budget and are looking for full ownership of a real estate project instead of living rent-to-rent in different apartments, this is your go-to option. Since their production is on a large scale in factories and is done in huge numbers their prices are lower than the conventional residential properties.
- It gives you a wide range of usage. You can use it for purposes like residential property, rental property, or a vacation house.
- With lesser prices, you might still be left with some money in your hand which you can put into other uses like buying luxurious stuff for the home which may include expensive flooring or designer rug.
- The topic of the mobile home is still new to the field of real estate so the competition is relatively low as compared to the rest of the market real estate.
- It is an affordable investment and the market is ever-increasing. Using it as a rental property can also be a good source of income.
Along with all the advantages, there are still a few loopholes in the investment:
- A mobile home requires an additional investment in buying the land for it. Although there are other options like mobile parks, those are not easily available in most places. It also comes with this stigma attached to the mobile parks and the neighborhood.
- It is ideally difficult to get a loan approved for a mobile home because it is still a new concept in the world of both real estate and banking. It is even more difficult to get a legitimate loan especially when you do not buy it with a piece of land.
- Although the cost of maintenance of these mobile homes is not very high when compared to conventional apartments, the frequency of repairs is relatively higher. This indicates that to keep its value you need to take good care of the mobile home.
When buying a mobile home park as an investment, make sure you go through the list of both pros and cons. The decision should be made according to the king of market value in the specific area for such investment. Just like any other investment be prepared for it to go either way.