Manufacturing
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- Date Submitted: 02/01/2016 04:10 PM
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The Advantages and Disadvantages of Manufactured Homes
Manufactured homes, also known as factory-built homes, pre-cut homes, factory-made homes, and mobile homes are residences that are built in a factory and then transported to sites of use. Nearly every other component of the home is completed and only some of the finishing touches added when they arrive on site.
The Advantages
Cost: Manufactured and modular homes typically cost less than site-built homes. They are the most affordable form of home ownership for low and moderate income people and families.
Quality control: Because 70 to 90 percent of the home is completed in a factory, a manufactured home is built under controlled conditions and strict quality control standards.
Speed of construction: Factory-built homes can be installed onsite only in 1-2 days, as opposed to 3-6 months for a site-built home.
Indoor maintenance: There is less space to maintain and clean.
Exterior maintenance: Exteriors are made of vinyl or aluminum, which require lower maintenance than wood or brick.
Property maintenance: In some parks, landscaping and snow removal are taken care of (and covered by the monthly fee.)
Amenities: Some have swimming pools, tennis courts, etc.
Taxes: Taxes are lower because residents pay a property sales tax that is based on the value of the home, not on the land on which it sits.
The Disadvantages
Depreciation: The homes’ value tends to depreciate more quickly than site-built homes. A mobile home is not considered real estate unless it is securely attached to a permanent foundation. Residents receive a title to the home similar to the one for a car; if residents purchase the property the home is located on, this will be recorded as a deed on the land.
Refinancing: Manufactured homes can be difficult to refinance when certain segments are not placed on a permanent foundation.
Lack of important financial benefits: Because residents own the house but...
Manufactured homes, also known as factory-built homes, pre-cut homes, factory-made homes, and mobile homes are residences that are built in a factory and then transported to sites of use. Nearly every other component of the home is completed and only some of the finishing touches added when they arrive on site.
The Advantages
Cost: Manufactured and modular homes typically cost less than site-built homes. They are the most affordable form of home ownership for low and moderate income people and families.
Quality control: Because 70 to 90 percent of the home is completed in a factory, a manufactured home is built under controlled conditions and strict quality control standards.
Speed of construction: Factory-built homes can be installed onsite only in 1-2 days, as opposed to 3-6 months for a site-built home.
Indoor maintenance: There is less space to maintain and clean.
Exterior maintenance: Exteriors are made of vinyl or aluminum, which require lower maintenance than wood or brick.
Property maintenance: In some parks, landscaping and snow removal are taken care of (and covered by the monthly fee.)
Amenities: Some have swimming pools, tennis courts, etc.
Taxes: Taxes are lower because residents pay a property sales tax that is based on the value of the home, not on the land on which it sits.
The Disadvantages
Depreciation: The homes’ value tends to depreciate more quickly than site-built homes. A mobile home is not considered real estate unless it is securely attached to a permanent foundation. Residents receive a title to the home similar to the one for a car; if residents purchase the property the home is located on, this will be recorded as a deed on the land.
Refinancing: Manufactured homes can be difficult to refinance when certain segments are not placed on a permanent foundation.
Lack of important financial benefits: Because residents own the house but...