Amid rising student loan debt and skyrocketing real estate prices, homeownership is the last thing on most young professionals’ minds. But what if you could buy a home for a third of the price of a traditional house, with rental options that have the potential to outpace your mortgage?
Are Modular Homes Becoming More Popular?
Modular construction is constantly evolving as new technology is fueling innovation. Factories are becoming more efficient and using artificial intelligence and robotics to create modules with more speed and precision than ever before, which is why this option is so attractive to home buyers.
Modular homes are a great investment that will appreciate in value over time. However, modular homes can also be customized and made to order with flexible flooring plans. This means that individuals who can’t find their dream house on the market may choose to build a modular home.
Will Modular Homes Increase in Value Over Time?
While there is no one easy answer, recent data seems to suggest that manufactured homes can appreciate just like other forms of housing.
Modular homes are customizable, made to order, and durable. Additionally, they also increase in value over time. Like all homes, taking care of your modular home increases its worth through the years.
It is worth noting, however, that hiring an unprofessional modular home company will result in a home full of problems that may cause it to depreciate in value. However, most companies are reputable and will provide you with a home you can enjoy for years to come.
Is it Cheaper to Build a House or Buy a Modular?
There are several variables to consider when pondering this question. The size of your home, how quickly you want it built, and whether or not you factor in resale value can all affect the answer. In general, it is cheaper to buy a modular home than a traditional home.
Modular homes are a great housing option and a smart way to beat the tough housing market. Consider building a modular home and reach out to an expert today on how you can get started!
Financing Your Modular Home
Interest rates are down and money is flowing. This means cheap money is readily available and mortgage rates are the lowest we’ve seen in 50 years. Since the pandemic, some billionaires have increased their wealth by up to 479%, and now along with their shareholders and everyone else with the ability to work during the pandemic, they are buying up hard assets like real estate. When American society is described as a nation divided into two groups, the “haves” and the “have-nots,” we’re talking about asset owners and asset payers. Now maybe the time to leverage these mortgage rates, strategically pairing them with tax write-offs and home loans.
Modular housing allows that, but at a discount and with the potential to make money from this investment
Right now a Google search on modular home developments doesn’t lead to much. This is a market that is just starting to gain traction as developers and buyers can leverage the scale.
If you’re looking to go modular, your best bet may be to find a developer creating a planned community of modular as this allows you to utilize a conventional loan. After a down payment to reserve, you ideally won’t need to pay until the house is fully built and financing options are provided by the developers. Realtors in your local market will be able to pin down modular housing opportunities, which are becoming more and more commonplace.
Building your own modular home also has its benefits as the increase in profit margin will be yours to keep. The catch is that you will likely have to use a building loan (which typically has higher rates of interest) or possibly tap into your mortgage, as conventional loans are not available.
The Future Is Modular
While the concept of factory-built homes may seem strange today, in the next few years, planned modular communities may become much more commonplace.
At Premium Living, we know that choosing a home is one of the most important financial decisions you will make. As an experienced modular home builder, we are committed to being your guiding light throughout this process. If you need a modular home built in Colorado, or if you have any further questions regarding resale value, call us today.