Investing in a Manufactured Home Property

Property Investment - Moving a manufactured home is not as hard a task as you might think, it can also be a massive financial benefit to yourself in short space of time. Think property and you often find your assessment being a large cash amount of investment. This I can tell you is not the case from my own experience. When you way up the difference in figures between purchasing a manufactured home and a foundation built home you will begin to notice some big financial margins which can produce nice net gains.

What are those and why?

Manufactured homes are quickly becoming the fashionable and more affordable alternative to a more expensive 3 bedroom 3 bathroom house built on foundations. It is not hard to see why.

Many people are currently experiencing a financial downturn and are considering moving home due to either a loss of employment or reduction in wages due to less working hours. So to counter this they are selling up and downsizing property.

In my view this is very bold and great idea if a person or family already has a home they can sell. Providing you can sell your home pretty quickly at a reasonable price with enough cash left over to look elsewhere for property, it seems you could be onto a bit of a winner in the current economic climate.

For most of us the cost of buying a house has actually gone down quite a considerable amount, this is also true for the manufactured home. When you compare the cost of a manufactured home too that of a foundation built house you will see a massive difference in price.

The cost of you average house which has 3 bedrooms and 2 bathrooms is somewhere in the region of just over $200,000 depending on the State you live in. The cost of a manufactured home depending on age and area can be as little as $35,000 on average for a 3 bed, 3 bath 1200 square feet property.

Basically this is a massive $165,000 difference on average which can be used to maximum effect if you use some brain matter and a bit of research.

A quick example would be if a person was to look at manufactured homes and land in close relation too each other (within 2 miles) which can have a significant reduction in the cost of moving a manufactured home from a mobile park to the fore mentioned parcel of land.

The average cost of moving a manufactured home is $10,000 which can be greatly reduced to as little as $6000 if the home is to be moved close by.

Now let's assume you have all the permissions to have a house on a particular piece of land that has cost you $50,000, there is an electrical supply line and a road close to the land. You have just shaved off $4000 on the bill of moving a home you have just placed on that land, which in turn can be used to foot the bill of connecting up the electrical supply to the house too the national grid.

Now if you do the simple mathematics on these averages you will come up with a total of $95,000 all that is left is connection to a water supply which can be as little as $5000 bringing your total to $100,000.

Now if you had just sold your home and was left with $165,000, you will have just profited to the tune of $65,000 which could be used for a multitude of purposes including purchasing another cheap manufactured home and moving it to you land if it is big enough and renting it out.

This simple pdf at ruralhome.org can give you some more information about moving a manufactured home and some regulations advice.

Many people are following this path as a more affordable way of owning their own home; which is fantastic advice for first time property investors or first time buyers.

This gives hope to those who may have felt the pinch financially and are selling their home, as it does open up new opportunities for investment and an opportunity to either use excess money from the sale of their home to start a business or as breathing space until they find more employment.

The manufactured home is definitely one project or investment people should look at if they are getting a foot on the property ladder or as an investment. Let not forget once you have moved the home onto your own piece of land, you will also be increasing its value sometimes more than three times. So there is even more to be gained by going down the path of purchasing, moving and owning a manufactured home.

Source: ruralhome.org