There is a common misconception that manufactured homes depreciate as soon as they’re brought onto the property. Contrary to this popular belief, manufactured homes can appreciate over time. Here are some reasons why manufactured homes don't depreciate.
Manufactured homes are constructed to a higher quality than traditional stick-built homes. For example, manufactured homes must meet HUD construction standards, which stipulate that the walls, roofs, and floors must all be structurally sound and built with strong materials. This means manufactured homes can last longer and maintain their value better over time.
Lower Cost of Ownership
Another reason manufactured homes don't depreciate is they cost less to own compared to other types of housing. Manufactured homes tend to have lower utility, insurance, and even tax costs than traditional stick-built homes. This means that manufactured homeowners can save money monthly on their living expenses, which in turn can increase the value of their manufactured home.
In addition to quality construction and lower costs, manufactured homes don't depreciate because of location-specific factors. For example, manufactured homes that are located in desirable areas may appreciate over time due to desirability and population growth. On the other hand, manufactured homes that are located in less desirable areas may depreciate if there is a decrease in population.
Manufactured homes also don't depreciate because of their resale value. Manufactured homes can be sold for more money than they were originally purchased for, depending on the condition and location of the home. This means that manufactured homeowners can often recover their initial investment when they decide to sell their manufactured homes.
Maintenance and Upkeep
At the same time, manufactured homes don't depreciate because of proper maintenance and upkeep. Manufactured homeowners should make sure to regularly maintain their homes to keep them looking their best. This includes painting the exterior, cleaning gutters, and making repairs as needed. By taking these steps to keep manufactured homes looking their best, manufactured homeowners can increase the value of their homes over time.
Not to mention, manufactured homes don't depreciate because of their appreciation potential. In many cases, manufactured homeowners can increase the value of their manufactured homes if they make upgrades and additional features that are desirable to potential buyers. This could include adding a deck, landscaping, or even installing energy-efficient windows and appliances. By taking these steps, homeowners can often make a profit when they choose to sell their manufactured homes.
Lastly, manufactured homes don't depreciate because of tax benefits. Manufactured homeowners typically have the option to deduct certain items from their taxes, such as mortgage interest payments or depreciation expenses. This means that manufactured homeowners may be able to save money on their taxes each year, which can help increase the value of their manufactured homes over time.
How MCM Homes Can Help You
At MCM Homes, we understand that manufactured homes don't depreciate. That's why we offer investment opportunities to homeowners who are looking for ways to increase the value of their manufactured homes.
We provide services such as financing and leasing options, real estate transactions, and other services that can help homeowners reap the benefits of investing in manufactured homes.