It’s no shock that buying a traditional home is a fantasy for many, but not a reality. Interest rates and listing prices are climbing higher, and salaries have not kept up. Instead of buying into the “bigger house, better life” dream, many people are faced with making a tough decision: rent for the foreseeable future or try alternative options. One option that many are considering is a modular home. Today, we’re going to look at both the positives and negatives of living in a modular home, so you are able to consider this choice.
Even a few decades ago, modular homes were significantly lower quality when compared to stick-built homes. Today, the quality is roughly the same, and many aspects of modular homes are even superior to older traditional homes. Think about it: a custom-made home built in the past 10 years will naturally have a stronger build than a home built over 100 years ago, as many homes in the US were.
Millennials in particular are known for having less money to throw around, but in our current economy, the situation will only get more difficult for everyone. Modular homes are an inexpensive way to own a home of your own, as the price is often under $100K. That means, with a 20% down payment and an average interest rate, you can easily pay less money on a mortgage than you would toward a rental.
Often, modular homes reside in communities that provide benefits for residents. These can range anywhere from snow removal to a community center or a swimming pool, and are almost always included in the monthly payment.
Modular homes, particularly pre-existing ones, typically come in a uniform style. They may not be appealing to someone who prefers a more stylized home, and there isn’t much they can do about it.
If you aren’t buying the property your home resides on, you will likely pay a lot rent to a management company. While lot rent can cover the cost of amenities and some minor maintenance, it can increase year after year and can price people out of their homes if they aren’t careful.
Modular homes often decrease in value, rather than increasing. This means you may not get all of your money back if you go to sell. On top of that, modular homes sell slower than other homes, due to their stigma. However, for people who do not plan to move again, this issue is not a problem.
Modular homes may not be glamorous, but they provide a safe, private space for you and your family. Before deciding whether to buy one, make sure to take a serious look at the pros and cons of owning a modular home.