Whenever you are looking to make an investment that will provide you with extra income, real estate is a common consideration. While buying and selling is not extremely profitable in the current economy, rental properties certainly can be. What many people are wondering, however, is whether the purchase of a mobile home is a sound real estate investment. Today, we will take a better look at this.
The first and most important thing you should know about investing in mobile homes is that their value works more like that of a vehicle than that of a home. While a standard home will gain value and equity over time, a mobile home’s value depreciates with age, as it is made out of metal that will rust, rather than brick that will withstand all weathers. This is absolutely something you will want to take into consideration when looking at them as a real estate investment. With that much said, however, there can still be benefits. If, for example, the mobile home you are looking at includes a prime piece of land as part of the asking price, it may be a sound real estate investment. Land is always valuable, and it is an increasingly rare commodity. If the parcel is big enough to build a home on in the future, you may still wish to consider it.
Mobile homes are not as good a real estate investment as the purchase of a brick-and-mortar home, but they still have value. With a good piece of land and the ability to live in the mobile home or rent it out for supplemental income, there is still something to be said for investing. If you want to enter the real estate market, don’t give up on mobile homes, but research them thoroughly before purchasing.