Manufactured homes always have quick depreciation in value?
Manufactured Homes August 25th, 2009I have heard from few people that manufactured/mobile homes always loose its value quickly over a time is that true?
even though the home is its own land?
It is not worth buying? is it a waste of money?
August 25th, 2009 at 3:53 pm
Yes, manufactured homes decrease in value. Even if it’s on it’s own land. The land may go up in value, but the home won’t. You are a lot better off building a smaller home that is a site built structure if you are worried about resale value. If you plan on living there the rest of your life, then it doesn’t matter about value. You can also find good deals on used homes sometimes. I had some land and bought a 2 year old mobile home for less than half of it’s "new" cost. I kept it there for about 5 years until I had my permanent home built. I was then able to sell it for the same price I bought it for. So it was basically free for 5 years. It all depends on the situation, just think it all through before you decide on something.
August 25th, 2009 at 3:53 pm
The old saying was "mobile homes are more like refrigerators than houses, they go down in value". Modern mobile homes can be just as good as "stick built" houses. But the old bias still exists. And zoning laws are tough on manufactured homes; which keeps values down.
They can be a great place to live. And the prices are half of a house. So yes, they are worth buying.
August 25th, 2009 at 3:53 pm
Homes needing rehabilitation aside, the way the home was built has nothing to do with its value, unless there is no market for that type of home in your area.
It’s like saying that homes built on lakes will always lose value. Before there was a market for lakefront property land owners could barely give the property away (and in a lot of instances did give it away). And if water levels start rising in lakes and these homes start falling in these will depreciate as well. In some areas custom built log cabins will sell for 10 times as much in areas where there is no demand for log cabins.
In the 1950’s Manufactured homes were all the rave and these units began increasing in value pretty quickly. Right now there is a stigma that goes with manufactured homes, since they are built in a factory there are factory defects which cause the home to lose longevity. Whether this is true or not probably depends on the company that builds it.
The biggest factor that attributes to the value of manufactured homes is how much OTHER Manufactured homes are selling for in the area. A real estate agent can usually assist with this pretty easily.
The average person should not look at a home strictly as an appreciating investment as much as a great tax break, lower monthly payment than a rental, and the ability to resell after the mortgage has been paid down. If the home fits your needs and is within your budget keep it as an option.