When considering an investment in real estate, most people think only of a traditional residential market. Their money may go towards single family homes to flip and sell or multi-unit dwellings to hold onto as an income property. While these are great options, thinking outside the box can often mean all the difference in a return on your initial investment. One outside the box approach is investing in mobile homes.
Are mobile homes actually a good investment? According to the author and lead analyst of the Phoenix area housing market, Mike Orr, he states that “the fastest appreciation over the last 12 months has been experienced by mobile homes.” The numbers show just what a good buy a mobile home can be. From November 2015 to this month, the average price per square foot has increased by 12%. That’s an unusually large increase for one year’s time. The average price per square foot has continued to increase the last five years, jumping from $35.57 to $79.18. Orr claims, “This far outpaces the appreciation of more traditional homes. Only 1,736 mobile home listings closed in the last year across Greater Phoenix, making this segment pretty small- just 2% of the total market.” It’s not the traditional market for investors but it’s one of the highest returning markets in the Phoenix area!
If you’re thinking of investing in a patio home as opposed to a mobile home, you may want to reconsider. The appreciation is up only 2.6% from one year ago. The average price per square foot from the last five years has moved a short $109.22 to $161.67. Think twice before investing your cash here.
So are mobile homes a good investment? The short answer is Yes! Of course there are many factors that go into determining if the specific mobile home you are considering purchasing is priced right for you to make a great return on your investment. But, if you purchased a mobile home in 2011, chances are the value of that purchase in the greater Phoenix area is worth more than double what you paid for it! For more information about traditional or out of the box investing, such a finding a mobile home to invest in, turn to your local experts at Better Choice Homes.
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