Is a Mobile Home a Good Investment? The Answer is “Yes!”
August 14th, 2020
If you’d like to stop renting, you may be looking at alternatives to buying a single-family home, which continue to rise in price in many areas of the country due to high demand and low interest rates.
In your research, you may have considered a mobile home, also called a “manufactured home.” But is a mobile home a good investment? Can you benefit from purchasing a mobile home instead of a single-family home? The answer is “yes!” Read on to find out why a mobile home may be a good investment for you!
The Costs of Mobile Homes are Lower than Single-Family Homes
Because mobile homes are manufactured and then shipped to a destination site, they can be assembled at a much lower cost compared to a traditional single-family home. Because of this, a mobile home can be a great option to fit your budget. Check out homesdirect.com for information about the average cost of a manufactured home.
Another cost to consider in the purchase of a mobile home is that you typically do not own the land your home is placed on — you rent it from a mobile home “park.” We‘ll discuss this in more depth later in the article.
You can Avoid Wasting Money on Rent
If you’re currently renting, a mobile home is definitely a good investment. This is because you can avoid paying rent each month, and instead pay that money toward ownership of your mobile home.
Eventually, you will own your home outright — and if you ever want to move, you will be able to sell it and recoup most or all of your investment. That’s much better than simply paying rent to a landlord each month.
And if you have heard that mobile homes don’t appreciate in value — that may not be the case. Authorities in the industry like mobilehomeliving.org show how the value of a mobile home can appreciate over time.
In many cases, the cost of a mobile home loan is also less than what you may be paying in monthly rent for your current home — which means you’ll be able to save more money each month, and work toward other financial goals.
Mobile Home Lot Rent is Affordable, or You can Purchase a Lot for Your Home
In many cases, you’ll need to pay rent for the land that your mobile home is on. This rent covers things like utility hookups and gives you the right to have your mobile home on the property.
Your other option is to purchase property that’s zoned for a mobile home. By doing this, you can avoid paying lot rent. However, you may face costs of hooking up utilities, and it may be difficult to find a good location where you can buy a lot zoned for a mobile home.
See if a Mobile Home is Right for You — And Contact Us to Get A Loan!
At Community West Bank, we specialize in manufactured home loans in California. If you’re interested in a mobile home and need a loan, contact us right away. We’re happy to discuss your options and ensure you get the best loan for your needs and budget.