For investors looking to maximize their earnings quickly, modular homes are an excellent choice. In terms of global properties, many foreign nations haven’t fully grasped the high turnaround value of modular homes. As an investor, you could corner the market, thus creating profits, as well as providing affordable homes for the nation’s residents.
Factory built homes are sold worldwide for big bucks. Keeping reading to learn how you make this solid real estate investment, and turn your sale around quickly, for huge profits.
Investing in Modular Homes
Investing in modular homes can result in a quick sale, and therefore a fast influx of cash. These homes are built in a factory, in as little as two weeks. The home is constructed in pieces, and then it’s put together at your build site. After that, it’s just another two – four weeks until your builder completes the project. Overall, construction costs are affordable, meaning you can expect to sell the property for considerably more than it would cost you to build it – and, all in less than two months.
It’s up to you whether you sell the property or rent it. Investors have made considerable funds doing both. Modular home manufacturers create different models for different investment options. For example, Palm Harbor in Dallas, Texas offers floor plans for single-family homes, as well as floor plans for duplexes and other rental properties.
Location and land value will factor into the sale price, so it’s important to build the house in a desirable area that’s enticing to buyers. If you choose to split the house into apartments you’ll be paid rent each month and over time, the modular home will result in considerable profits.
Modular Homes are More Valuable than You May Think
In truth, modular homes are a valuable purchase, and well worth investing in. People assume that modular homes depreciate in value, but this is one of many myths surrounding modular homes. In fact, it’s quite the opposite. Just like site-build homes, modular homes can increase in value.
It’s all about location and maintenance. If your modular home is built in a bad neighborhood, it may depreciate in value, but so do the site-built homes in that neighborhood. A good location can secure the property as highly valuable, so keep that in mind when you’re considering land for the home. Regular maintenance will ensure the home holds up against the test of time, but that doesn’t mean the home isn’t well-built. All homes require regular maintenance to retain their value.
Modular homes are built to remain strong, even in the event of natural disasters. The 2004 Hurricane Charley showed this strength in action. The storm caused about $11 billion in damage, and yet the modular and manufactured homes by Palm Harbor seemed to withstand the 130 mph winds, despite being directly in the path of the storm. Palm Harbor’s survival rate during the second-worst hurricane in U.S. history was extremely high and so is this town’s opinion of modular homes.
A Smart Investment
The cost ratio falls in the investor’s favor. It costs significantly less to build a modular home, which results in an instant appreciation when the modular home hits the market. Your home will be worth more the very moment you list it. This is a dream come true for investors, especially those looking for a foreign real estate market that isn’t already saturated in investment developments and site-built homes.