The choice of home we make can determine how we live our lives. It can determine our dreams and goals in the future as well. So you should think hard about your choice of a home before anything else.
One particular home choice that does not require as much dedication and commitment is mobile homes. Mobile homes were prevalent in the early 1980s and during the early 2000s. They were affordable and accessible to many Americans. But nowadays, this home choice might not be as good, because of the changing times.
This article will discuss whether mobile homes are an excellent choice for you. We will also be discussing other options for you when it comes to manufactured homes.
Decreasing in Numbers
Mobile homes are decreasing in numbers. There were about four million mobile homes in 2018, and numbers are expected to fall to nearly two million by 2023. This decrease in numbers is primarily because of homebuyers’ changing perceptions of mobile homes. The first reason as to why is because of the current generation’s investment mentality.
Not a Good Investment
Mobile homes aren’t a good investment. They aren’t an excellent asset to have in your portfolio, and when you do sell them, you won’t make your money back. There are various reasons for this. The first reason is depreciation.
Mobile homes depreciate by a decent amount every year. Unfortunately, they also depreciate faster than traditional homes. Many mobile homes are built from lightweight materials, so they can be easy to move, but this isn’t an advantage if you’re planning to sell or live in one area for some time. Another reason why they’re not a good investment is if you purchase the home through a loan.
Purchasing a mobile home through a loan isn’t a wise decision because the outstanding loan can easily overtake your home value in three to five years, which means that you’re paying for something that isn’t paying you back. This is on top of the expenses you gain from maintenance and other necessities.
An example of this comes in the extension you might have with your mobile home, such as a garage. Garages prove good value in homes because they are a necessity, but not for mobile homes. Simple fixes, such as professional garage door repairs, aren’t all that costly, but they are certainly costly if you’re paying for a home that only depreciates in value over time and a home that no one is willing to buy in the future. This is why it’s not worthwhile to spend money on maintaining mobile homes aside from foundational issues you might face.
The last reason why they aren’t a good investment is that they are tough to resell. With people’s perceptions about mobile homes changing, there isn’t really anyone willing to purchase them from your hands.
However, there is a way for you to make your mobile home a worthwhile investment, and that is to purchase the land under your mobile home. Your mobile home might depreciate in value, but the land will continue to appreciate. This offsets the costs that the mobile home might have, but it’s quite counter-intuitive because the main reason you’d want to purchase a mobile home is that you don’t want to stay in one area.
Good if You Badly Need a Place to Stay
However, if you’re in dire need of shelter, and something that you own, then a mobile home is for you. If rent is pretty expensive within your area, you can save a lot more money by purchasing a mobile home. The quality of construction of these homes is also pretty good, but you need someone to inspect it first if you’re planning to buy a used mobile home.
Mobile homes are also good if you plan to move a lot. However, there is also a decreasing amount of mobile home parks in the US, so you should take note of that.
If you’re planning to save money for the future to make some investments, then a mobile home is a smart choice. But don’t make it your investment option because it’ll only drag you down. If you’re looking for manufactured homes, you should consider modular homes instead.
Modular Homes of the Future
A replacement for mobile homes in the coming future is modular homes. They are far cheaper than mobile homes and traditional homes. Moreover, they are much faster to build. The best part about modular homes is that you own the land under these homes, so they only appreciate as time goes on.
Mobile homes are great if your lifestyle relies on moving a lot. However, don’t purchase a mobile home as an investment or only plan to stay in one place.