The Advantages of Living and Investing in a Mobile Home Park
Most people have dreams of owning a house and a lot. Television ads portray the traditional home as that of a family home, with a house complete with a porch. Who would not want to imagine children playing on the lawn and the head-of-the-family driving into the garage? They also target single men and women in the employment sector who longs to have a place they can call their own. While both can achieve this on their own merits, there is one growing real estate trend that is currently increasing in number.
Mobile home park investments gain traction in real estate because of the demand for affordable yet high-quality housing. The ones who need reasonably-priced accommodations are plenty – middle-aged employees who are starting to come off some financial responsibilities, couples who are starting with their families, and seniors on a pension. Most of them are part of a lower-income bracket, and they opt to live in rural areas instead of the crowded ones.
Why live in a mobile home?
Contrary to popular belief, living in a mobile home provides a lot of benefits. Also known as manufactured homes, living in one gives you a sense of safety and security. All of these prefabricated houses are built up to coding standards. So air conditioning and heating systems, plumbing, electrical, energy efficiency, transportation, sturdy structural design, and fire safety are considered to be par, if not better, than most apartment complexes. The basis of eco-friendliness and weather safety depends on the region of the mobile home park. These abodes go through strict checks by the local government for the protection of the tenants.
The best part of living in a mobile home is its affordability. Building a new house on site costs more than living in one. The price value is usually half or just a third of conventional housing construction, so it is currently the popular choice for most people who want more value out of their hard-earned money. It is even cheaper than renting out a house. The home is yours, and all you need to pay for is a lease for the land.
Regular apartments do not have much space. You rent out the house itself, but you should consider yourself lucky if you have your driveway, detached walls, or a garden. When you compare that to a mobile home, you have a more meaningful sense of community as you have an additional for receiving guests and interacting with neighbors. Also, most land-lease neighborhoods have social and fitness amenities where fellow region-dwellers can intermingle with one another.
Why do you need to invest in a mobile home park?
Mobile home park investments are currently in high demand. Starting with a mobile home park is the best choice if you are planning to invest in real estate. It has the lowest cost per unit. Since investors own the land – and not the house – it is more economical and understandably more affordable.
There are also fewer responsibilities when it comes to updates and house preservation. Regular wear and tear are often evident in any home, especially if it is more than a decade old already. There is a fee for the park or lot upkeep, but it is less costly than having to do maintenance work on a house. There is no need to repair the residence on the land since it is not yours in the first place.
When you invest in a mobile home park, you can start with just one plot of land. Since it is cheaper than an ordinary house and lot, it is inexpensive. If you have an excess budget, you may opt to buy more than one lot—the more lots in your portfolio, the more chances of earning monthly via land-rental. Also, statistics have shown that there is a low tenant turnover because moving out of the park will be costly for the occupant. Most of them have a lease of five years, so you earn five years on passive income. And for the ones who decide to leave the place, they usually leave the mobile home on your lot. So that will be more income for you since you can rent out both the house and the lot.
Also, the local government has zoning laws that change from time-to-time. Since there is a growing need for more affordable and budget-friendly housing, there is also a demand for well-kept parks for mobile homes. The senior retiring population has a desire for these areas since their numbers grow by the minute.
Mobile homes are the future of the real estate industry. So, rest assured you will make the best decision for your growing investment portfolio if you decide to live or invest in a mobile home.
As an alternative to mobile homes you could always look at vancouver condos for sale as the relative pricing of a condo and a mobile home is relatively the same.