Homeownership is one of the privileges that Americans look for when buying a home for themselves. But not everyone ideally lands in the position to own or purchase a home as a permanent residence.
As an affordable and convenient option, manufactured or mobile homes have a myriad of advantages but there are potential drawbacks for owning a manufactured home as well. Before you opt to have a mobile home for yourself. Look at the risks of buying manufactured homes to be certain about your decision.
But first, let’s go through the term – manufactured homes.
What is a Manufactured Home?
You may have grown up calling a mobile home a manufactured home, but manufactured homes are much luxuriously designed and multi-functional as compared to mobile homes. However, there are some similar elements in cases where mobile homes and manufactured homes come in contrast to each other such as they both are assembled on a rectangular chassis instead of a foundation and are easily movable.
Typically, pre-installed mobile homes were meant to be on the chassis and were movable giving them a ‘mobile’ name. They were wide and small and mostly used for recreational purposes and home parks.
The modern manufactured home that we are currently discussing is lavishly created and is intended to move once.
Vice President of a manufactured home company ‘ Express homes’, Chase Daughtery says, ‘
“They are built on solid-steel frames, giving them a sturdiness that belies the stereotype of yesteryear.”
These movable homes can be astonishingly spacious. With a kitchen, living room, restrooms, and multiple bedrooms, these manufactured homes resemble site-built homes dramatically.
Daughtery added that:
“Many floor plans are available that range from basic models to more elaborate designs that feature vaulted ceilings, drywall, fully equipped modern kitchens, comfortable bedrooms with walk-in closets, and bathrooms with recessed bathtubs and whirlpools.”
How much do these manufacturing homes cost?
The greatest benefit that you can get through manufactured housing is its cost. The costs, however, may vary across states due to the general costs of manufacturing houses. But in most states, manufactured homes are much cheaper than site-built houses.
For instance, the cost of purchasing a double-wide home in Connecticut (an extended version of manufactured homes) costs $138,800 on an average. On the other hand, the same house can be obtained for $71,700 in Indiana, according to the U.S. Census Bureau estimates.
On the other hand, you may also need to consider the land cost for your manufactured home where you will rest your manufactured home. You have to rent out the space in a home park or buy real estate to settle your manufactured home for the rest of the time as it can only be moved once.
Look further to know the potential advantages and risks of buying a manufactured home.
Advantages of buying a manufactured home
One of the most sought-after advantages is the affordability of homes in low-cost options as compared to site-built homes. Apart from that, it makes it even easier for homeowners to obtain ownership. Additionally, mobile homes generally cost less per square foot as compared to site-built homes. Therefore, you can have more space in your manufactured home for your money.
Another advantage of having a manufactured home is that they are super flexible. Since they are affordable and semi-permanent, owning land and assembling a mobile home on it enables you to move in the future. Moving from one place to another may not be as simple as it may sound, due to plumbing and electrical adjustments and arrangements.
But it might become an option if you are not certain if you want to own land, want to commit to a site-built home or if it is difficult to achieve stick-built homeownership.
Although you may find it even difficult to move a mobile home once it is set up, they are easier to move than a site-built home. This is because, once the site-built home is constructed, it sticks on the land permanently until it gets demolished.
Another advantage that lies under mobile homes is that they are built-in controlled environments. This means that they are built under high standards to bear the wear and tear of the environment.
Risks of buying a manufactured home
Once you have considered the costs and benefits of having a manufactured home, it is now time to look for the risks associated with them.
The drawback of buying a manufactured home is that the value of these homes depreciates quickly. It’s just like a mobile phone or a brand new vehicle. The moment they leave the factory, they lose their actual worth.
Stick-built homes on the other hand, always appreciate in terms of value as they carry the value of land with them.
If a person is owning a manufactured home and land he may think that the price of the home is increasing with time. But in reality, the reason may be only the underlying land, not the manufactured home assembled over it.
Your manufactured home value also depreciates because it is not real estate that would be counted as permanent property. Rather it is your personal property that has no footprints on the land (if ownership of the land is not included).
Because it is your personal property, you have to finance it and look after providing sanitation and electricity facilities on your own. And that’s where it becomes tough to manage.
Another disadvantage is that it is not easy to resell manufactured homes. This is because they become immovable once placed. More difficulty comes into play when the seller wants to keep the manufactured home placed where it is. Looking for a buyer who buys the land along with the manufactured home is even tough.
The final risk attached to it is that, unlike stick-built homes, they have even greater risks of dismantling due to natural disasters. During hurricanes, floods, and earthquakes, manufactured or mobile homes are more prone to get damaged easily.
Manufactured homes may provide you with cost-effective solutions and you may find it convenient, you should consider the long-term effects that may affect your future financial conditions.
Consider the above-mentioned scenarios and be certain whether you want to invest in a manufactured home or take the risk.
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