A mobile home development is a great place to call home! You can have all the benefits of traditional home-ownership without the burden of tiresome maintenance and excessive property taxes. Manufactured home living is quickly becoming a top choice for our aging population and for good reason. There are many advantages and only a few disadvantages of living in a manufactured home community.
Let’s get one thing out of the way before we begin. The negative stereotype of mobile home parks couldn’t be further from the truth. Those parks filled with rectangle structures sandwiched together is a thing of the past. The developments built today are gorgeous! Oh and also, a mobile and manufactured home mean the same thing when we mention them in the article. Read more about the two terms in detail in this article by Prairie Lights Country Homes, a manufactured home retailer in Manitoba.
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Advantages of living in a mobile Home
The greatest advantage of living in a mobile home park is affordability. You get to enjoy the perks of homeownership without the burden of paying a large property tax sum or having to maintain the land and utilities.
Types manufactured home ownership
There a 3 types of ownership situations of mobile home developments. One most-often referred to as land-lease communities. In this situation you own the home (with a typical mortgage) but pay rent on the land your home sits on to the landlord or management company. The second situation being simply paying rent on the home and land. The third situation is you own the house and land, much like a conventional property. Where you’ll pay the mortgage, utilities and property tax. But you may still pay fees to the landlord of amenities like landscaping, snow clearing, and others. There are pros and cons on each situation, but we won’t get into that today.
Here’s a list of the greatest advantages of manufactured home living:
- Low and predictable costs.
- No overly close neighbors unlike an apartment or condo.
- Minimal maintenance due to small yards.
- Location. Often times, parks are conveniently situated, many with an amazing view of ponds and lakes.
- Pets are usually allowed.
- Age and population restrictions. Those living in a like-minded community are oftentimes happier and feel safer.
- Community perks include pools, fitness centers, and regularly scheduled community events.
Community restrictions
Many manufactured home communities are age-restricted, most being 55+ neighborhoods. This is a perfect setup for retirement living that appreciate limited disturbances and enjoy the company of those within their own age range. There’s something to be said about the quiet in a 55+ park – it’s so peaceful and serene. Our development in Teulon is a 50+ community outfitted with many walking paths, gardens and a recreation centre. Take a look at Crescent Creek Estates Teulon and inquire about our mobile homes for sale.
Some communities are more family-oriented which is great for families with small children – a best friend is bound to be found just a few houses down. Childhood memories made in these developments are often cherished. When a park is managed correctly, with proper background checks and safety protocols, the entire community becomes a safety net for the children within the park.
Investing in a manufactured home development
Manufactured home developments are increasingly becoming attractive to investors. They represent an investment that has lower maintenance costs, low tenant turnover, and smaller initial investments. Mobile home parks present an opportunity for real estate investors for relatively low-risk segment of the market.
These developments contain affordable housing for the general population. Therefore represents an investment that is typically resistant to economic downturn. This is a valuable investment for an investor to have in their portfolio since it can provide a steady stream of income even in the most bearish economy. These communities fill a need for society, especially since there is a decline in savings amongst retirees on average over the past decades. They are a low-cost option that provides an attractive opportunity for quality home-ownership.
Read how affordable housing is good for local economies
Smaller investment
The initial investment in owning a manufactured home development is a relatively cheap one. You are acquiring more housing units for less money than in any other domains of real estate investment. Consequently. these developments presents a minimal risk.
In a land-lease deal, you are not buying actual constructed units. Since you are investing in land rather than expensive constructed units, less money is needed to begin a venture. Mobile home parks also do not require expensive, premium plots of land – so you can hunt for bargains on land that will only increase your margins.
Lower Tenant turnover
There is a stability amongst tenants in these communities contrary to other sectors of real estate. Statistics show that mobile homeowners settle in a community, they do not usually leave. Low tenant turnover is a huge benefit of owning any real estate. Any landlord can tell you that finding new tenants and putting mobile homes for sale takes significant effort. Tenants like to stay where they are, for the simple fact that they are provided with affordability and low maintenance. Providing them with good management and a well-maintained park only sweetens the pot for them. Most owners and renters want to stay put because they like it that way.
Reduced maintenance costs
When you own a land-lease community you can essentially forget about having to deal with unreliable and expensive contractors. Because you only own the land, you are not obligated to worry about repairs to units. Ask any landlord of a multi-unit building, and he or she will tell you that forgoing this daily occurrence might be enticing enough on its own.
Our Crescent Creek Estate developments houses newly constructed manufactured homes. Thus built with quality products and a modern design for an elegant curb appeal. That being said, these units require very low repairs and maintenance due to the meticulous build process in the factory. Also, there’s regulations on modifications done on the homes. This is to avoid having to fix work not done properly or to code. Not only that, but to maintain the beautification of the entire community as a whole.
Homeowners are responsible for their units, limiting your financial liability and costs of maintenance. That said, they are paying you rent, and will expect some amenities that you should plan on providing. Like providing garden spaces, communal patios, walking paths, and more. On the whole. both the upfront and ongoing costs will almost certainly be far lower than if you had purchased a multi-unit building.
Disadvantages of Mobile Homes
The biggest disadvantage of mobile home parks is the horrible stereotype attached to them. All that matters, though, is that you know the truth about the homes and the communities – who cares what ‘they’ think? I encourage people to take a look at these manufactured home from Shelter Homes Systems and the Modular homes from Conquest. They look just like a stick-built home.
Another disadvantage of these homes is a slower home appreciation potential. Manufactured homes can and do appreciate but those situated within a community have a harder time. However, with the aging population and real estate being in high demand, that aspect may be turning around.
Conclusion
The affordable lifestyle of manufactured home living is perfect for anyone that wants to live life making memories instead of paying high bills. A mobile home isn’t just for retirees or low-income families anymore. We are seeing a rise in interest amongst first-time homebuyers of the ages 25-30. Due to the rising house prices on the market today, they are well out of reach for many individuals starting in the workforce. The younger generation is seeing the value of living affordably.
If you are interested in knowing more about acquiring a Crescent Creek Estates development in your community, Check out our acquisitions page. Or contact us to find out about any mobile homes for sale anytime!
