Is a Modular Home a Good Long-Term Investment?

One of the most frequently asked questions about factory-built or modular homes is how their value will change over time. Will they appreciate or depreciate?

This concern is not misplaced because, as much as the home is a place to live, it is also an investment, and like all investments, we want them to appreciate in case we want to sell in the future. Knowing what will happen to your property’s value over time can also help you stay on top of valuations for home insurance purposes. Unfortunately, there is a common misconception that modular homes depreciate over time. This belief, however, cannot be further from the truth. Modular homes appreciate at a similar rate, if not higher than traditional stick-built homes in the same neighbourhood

Modular Homes Vs. Manufactured & Mobile Homes

The association between modular and manufactured homes is one reason people wrongly think that modular homes lose their value over time. Therefore, it is essential to make the distinction between the two, for they are indeed very

different. Manufactured homes— sometimes also known as mobile homes—like their name, are built to be mobile. They are assembled in factories and then transported(towed) to the site for use. Unlike stick-built and modular homes that are meant to remain in one location, mobile homes are relocatable. They, therefore, tend to depreciate over time like automobiles and fetch a low resale price.

On the other hand, permanentlybuilt modular homes are manufactured in a factory but assembled on-site like traditional stick-built homes. With the advanced technology today, modular homes can be built in several styles and once assembled, they look like any other home. Just like on-site built homes, modular homes must also meet the local or state building codes.

Why Modular Homes Appreciate in Value

The construction building of modular homes is done in the factory simultaneously with the site development reducing the time and labour costs. Therefore, it costs less to build a modular home than the same stick-built house. This cost advantage means your modular home will instantly appreciate from its actual cost to the market price.

Superior Quality

In most cases, the quality of modular homes is as good or better than that of stick-built homes. They are built to meet stringent CSA and local step code requirements. It is more effi cient for manufacturers, who deliver modular homes to build to the most robust building codes of the combined regional building requirements.

Availability of Financing Options

One reason mobile houses have low resale prices is that many banks are reluctant to off er loans for their purchases. However, it is diff erent for modular homes as they are treated the same by fi nancial institutions as stick-built homes. They qualify for standard mortgages and home fi nancing. Therefore, if you want to sell your modular home in the future, you are as likely to fi nd potential buyers as anyone selling an on-site built house.

NEW

MEMBER DRIVE

Starting October 1, 2022

Join Blue Ocean for 2023 and receive signing bonuses*:

• Up to 15 months for the price of 12 • Up to $100 off your membership fee • $50 Range Ball Credit • $50 Merchandise Certificate • “Gift of Golf” complimentary tee time for 4 with carts

*Conditions apply. For pricing and further detail, call or visit our website.

Join us inside or on the patio at the Blue Ocean Bar & Grill

604.885.2700 blueoceangolf.ca

m o c y . h p a r g o t o h p n o s r e h p c m y l l o m D I T : E R C O T O H P

We value thinking that goes beyond aesthetics, to a fundamental understanding of the needs of our clients.

tschmidtarchitect.com 778-279-6268

Serving The Sunshine Coast & Gulf Islands

coast t bin bin r re en nt ta al ls s

Sunshine CoastCoast’s Waste Removal S’s Waste Removal Sp pe ec cialists ialists

• Bins ranging in size from small 2 yard bins to large 50 yard bins and many in between • With 3 di erent sizes of trucks,we can t into any spot and handle the largest loads

• No job too big, no job too small • Good for all projects: new construction, renovations, demolition, house and yard renovations, rock and concrete, drywall, roo ng or anything else SHIPPING CONTAINER & PERIMETER FENCE RENTALS AVAILABLE