When buyers come to view homes situated at any of our residential parks, one of the first questions they ask our team is do mobile homes lose value over time? The answer is yes, a mobile home will likely depreciate over time unlike a traditional house but there are several reasons as to why this is the case.
Firstly, unlike a bricks and mortar home, a park home does not come with its own land, which is why you are unable to get a mortgage on a mobile home. Part of the costs that residents will pay when they stay at any of our residential parks are plot fees, which effectively sees the resident renting the land in which their home sits on.
Secondly, as park homes are manufactured, they are considered in the same way that other commodities such as cars are; cars typically value the minute they are driven out of the showroom. In saying that, the better condition you keep your home in, the higher value it will have to a potential buyer - similar to looking after a car and regularly servicing it.
The main reason why mobile manufactured homes depreciate in value is that they are considered to be personal property as opposed to real property. The difference between personal and real property is that real property is defined as land and anything that is attached to it, while personal property is anything that can be moved without injury.
Because the land is not automatically attached to the property, it is the structure alone that is taken into consideration in its valuation. As with anything that has been manufactured, the home itself will deteriorate over time, and in turn its value will decrease year on year.
Very few of our residents purchase a park home looking at its potential re-sell value in the future. While it is true that mobile manufactured homes depreciate in value over time, it is also true that park homes offer a freedom and standard of living that simply isn't offered with traditional brick and mortar homes.
The typical mobile home buyer is someone that is looking to get away from the hustle and bustle of everyday life and is ready to begin a new chapter of their life. Park homes are considerably cheaper to purchase than houses, which sees many buyers financing their purchase by selling their property to facilitate buying a mobile home outright, leaving them with a lump sum of money left over.
As well as getting away from the rat race, the cost of living is another huge factor that is considered by many of our residents and those looking to make the move. Running a park home is considerably cheaper than your standard house and, on top of that, all our parks include onsite facilities such as shops, post offices and more, reducing your reliance on transport.
Our parks are situated in highly sought-after locations in the United Kingdom, including along the beautiful Welsh coastline, deep in the English countryside and near historic towns. The summer months, especially, see a huge spike in holidaymakers looking to visit the areas where our parks are located, and it is for this reason why so many residents choose to let out their properties.
It is a win-win situation for both the owner and guest, with the owner able to recoup some of the costs of purchasing and/or refurbishing the home (even if it wasn't with the direct intention of renting out the property), while the guest benefits from the same features as all other residents in the park.
This is a popular option for owners of park homes that do not use the property as a full-time residence, utilising it purely as a holiday home. When the caravan is not in use and is effectively vacant while the owners are elsewhere, it can be a good way of topping up your household income.
Only in rare circumstances will the value of your park home increase over time, so if you do intend on eventually selling the property in the future you should look at ways you can work to maintain its value, or at least the most of it. This means looking after the property like you would any other possession and putting in work to maintain or even improve it. Just as you accept that from the moment you drive home a new car, it immediately loses a significant amount of its market value, that doesn't mean you don't maintain or service it - after all, you want to benefit from its qualities for years to come.
Newly built mobile homes can be expected to last anywhere between 70 and 80 years, while most residents are only looking for a property that will stand for the next 25 to 30 years. If you invest in a completely new home, you expect it to have a considerable amount of life left in it by the time you are finished with it, so there is always means to re-sell if you are that way inclined.
With a large portion of residents investing in a park home as a retirement home, it may not be the residents themselves that look to sell the property on. This means that whoever the property is passed on to will benefit from the value of the home, who can then choose to either keep and maintain the property or put it on the market.
If you are interested in buying a park home located at any of our residential park homes across England and Wales, please get in touch with a member of our team today by calling 01564 792323. Equally, you can view all of the available park homes on our website by visiting our residential parks page here.