Around 6.12 million apartments were sold in 2021. While many, if not most, of these homes were intended for individual buyers to live in, some were intended for real estate investors.
Some of these investors will simply hold onto the property until they can sell it for a profit. Others will turn them into rental properties.
Buying a traditional 2,500 square foot home is not the only home investing method, however. You can also invest in prefabricated houses.
Not sure what this means for your potential future investments? Read on for the basics you need to know about investing in manufactured homes.
What are prefabricated houses?
Most likely the term you have heard of is camper or caravan. Although many people use the terms RV and prefab as if they are the same thing, this is not the case.
The Department of Housing and Urban Development took RV building codes and safety seriously in the mid-1970s. RVs are homes built prior to these new building codes. The houses built after the changes are prefab houses that meet the requirements.
In short, a prefab home is a house that is completely or nearly finished in a factory. Then it is sent to where the owner has the land and zoning to place it.
Benefits for Investors
Prefab homes offer several key benefits to investors. At the top of the list is the acquisition cost. While a traditional home can cost anywhere from $300,000 to $400,000, a prefab home typically costs around $111,000.
This means you can get three prefabs for the price of one. With lower upfront costs, you can maximize your return on investment with rental.
Prefab homes are also ideal for young singles who are primarily focused on advancing their early careers. They want affordable housing until they get their first raise. This makes prefabricated houses an attractive option for the cost-conscious young professional.
Prefab homes generally take a more conservative, evergreen approach to interior design. For example, they prefer neutral interior colors over more modern options that might turn off potential renters.
Things to consider in a prefab home
If you are considering investing in a prefab rental home(s) then you need to make sure you take a few important things into consideration. For example, you should make sure you pay close attention to your town or city's zoning laws.
You also needprefabricated home insurance to protect your investment.
Prefabs and you
A prefab home or multiple prefab homes can be a good investment for those interested in rental property. In most places, at least, you should expect the upfront cost to be much lower than when buying a traditional home.
This lower price allows you to increase your profits while offering a cheaper rental. This can attract young professionals who want to focus more on their careers than home.
Are you looking for more advice or information about real estate or investments? You can find more publications in our business section.
Khalil ur Rehman was proudly born and raised in Abbottabad. Khalil worked as a journalist for almost a decade, having contributed to several major publications including Yahoo News and The Verge. As a reporter for The Hear Up, Khalil covers climate and science news. [email protected]
Posts viewed: 37
Aucun commentaire:
Enregistrer un commentaire