A static house is a detached bungalow-style residence. They are normally rented parcels of land in a privately owned park and are erected in the same way as static caravans.
Modern park homes have gone a long way from their mobile beginnings. The average park house nowadays has every contemporary amenity, both inside and out.
Static houses can be used as a year-round dwelling or a weekend destination. If you’re thinking of downsizing and moving full-time to a park home, it’s usually a good investment because the purchase and operating costs are usually substantially lower.
Park homes and their more affluent cousins, holiday lodges, are occasionally clubbed together. Park homes, despite their reduced size (with a maximum width of 14 feet), are designed to maximize space.
Within are many bedrooms, a magnificent bathroom, and the most up-to-date equipped kitchens. The residence is even equipped with central heating.
In this article, we will be looking at how static or mobile homes could be considered a potential investment, and how you might go about investing in one.
A well-built modern park home can last for eighty years or longer, but its monetary value diminishes as it ages. It’s probably easier to compare it to purchasing a car rather than a home.
The value should be determined by the opportunities it will bring your family in the future, as well as the additional money it may provide.
Why Should I Invest In Mobile Homes?
Even though it isn’t worth as much as a regular home, your park house might still be a good investment. Especially when you examine the bigger picture of life and the things that money can’t buy.
The majority of holiday parks are either in beautiful countryside or near the sea. That means you’ll get a lot of bang for your buck in the shape of fresh air and breathtaking views. The joy of waking up to the sound of birdsong and cooking a relaxed lunch on the barbecue. The capacity to go for long walks, ride a bike or a horse, or surf.
What you do with your park house is totally up to you. You might be able to rent it out to others and make enough money to pay for it if you can keep yourself away for long enough. When it comes to aiding you in locating guests and making them feel welcome, most holiday parks are fairly accommodating.
Keep in mind that owning a second home may allow you to save all of the money you would have spent on vacation packages and travel otherwise. Not to mention the stress and boredom of sitting at airports.
What Are The Benefits Of A Mobile Home?
A park house is far less expensive to maintain than a regular home, especially if you choose a model that satisfies the most modern thermal efficiency standards.
It also helps because holiday parks aren’t allowed to boost the rates of the utilities they give to park residents. You will typically be charged the market rate, minus a small administrative fee.
If you live in a mobile home park, you may be able to obtain additional units for less money. It is the most cost-effective investment per unit of any real estate asset type.
The majority of park owners do not own the units; they merely own the property. This means that when compared to the number of units, the investment cost is generally substantially cheaper.
A home or apartment unit, for example, may cost $100,000 or more, whereas a mobile home park property could cost as little as $10,000.
Repairs are generally affordable, and mobile home parks require minimal effort to invest in. The upkeep, improvements, and repairs of the mobile home are the responsibility of the owner, not the landlord.
While the upkeep of a mobile home park must be considered, it is far less than the upkeep of an apartment complex.
Investing in mobile home parks is a low-risk proposition. The risk of loss diminishes as the number of independent units increases. The danger is spread out more equally when you have a bigger number of tenants.
For multifamily buildings, tenant turnover is a considerable expense. Cleaning the property, finding a new renter, and not having any money during the vacancy all deplete your monthly revenue by hundreds of dollars.
Mobile home parks, on the other hand, have a low turnover rate due to the high expense of relocating a house out of the park. The majority of residents in mobile home parks want to stay for at least five years. This signifies a low degree of risk and a low rate of turnover.
When tenants opt to go, they often sell their mobile homes, allowing the lot’s rent to be raised.
How Do I Find Mobile Home Parks?
Mobile home parks are extremely localized investments. Most mobile home park investors must have a good awareness of the area in which they plan to invest. Finding reliable information about these parks may be difficult, so looking for signals of a possible sale is vital.
The most motivated merchants are found in parks that are run down or underperforming. To get the park back up and running, some hard labor will be required, but it will be well worth the effort.
One simple way to invest in mobile home parks is to use local realtors and the Multiple Listing Service (MLS). Some area realtors may be aware of properties that aren’t on the market right now or have expired listings.
You may also do your own research and contact park owners in your area. Send letters to property owners requesting that they contact you if they wish to sell, or speak with bank managers in the area.
Who owns a park for sale or is considering retiring and selling their park is known to bankers. Create a working relationship that might lead to future funding.
Every investment requires due diligence. The existing owners may have set the rents at a lower rate than the market rate.
Conduct interviews with employees, learn about the local economy and get to know the current park owners. Make yourself a buyers checklist that you can cross off as you go.