A person can live in a manufactured home either by rented occupancy system or by owning it. People look for value for money when they purchase a modular home or a manufactured home. Let us dwell further and find out why manufactured homes are an excellent investment proposition to real estate builders.
Economies of Scale
Builders of manufactured and modular homes obtain all their ancillary parts from different suppliers, and perform fastening work on location. Thousands of manufactured homes are made in a factory year on year, with assembled parts. The economies of scale concept apply in not just production but buying as well. What are economies of scale? Cost benefits of bulk buying and bulk production.
Labor Cost Savings
The manufactured housing segment is capital intensive in relation to the labor charges involved production. Much like the case in modular homes prices, the costs involved would eventually reflect in the buying price of the home that the eventual homeowner need to pay. The builders, most of them, use large assembly lines with little to no production labor going by the assembly line concept that originated in Japan.
Savings on Wastage Cost
The construction cost of a manufactured home considers everything from insurance and warranty to the raw material cost, and savings on scrap. Provided you construct as per the blueprint laid down by the designer, tailor-made to the cause, you can avoid scrap and wastage. With eye for detail construction, you wouldn’t have to call the services of a waste disposal company either. Wastage may or may not occur when you place the manufactured home to a new location depending on the neatness of fastening work.
Manufactured Home with Land
A freehold land requires a lump sum amount of money, unlike in the case of a rented property. With constant manufacturer-buyer interactions, manufactured homes with lesser square feet cost can be built easily. Any change in the price may occur due to the negotiations with the buyer, but being an investor, you can still negotiate the manufactured home with land.
Did you know manufactured homes can be juxtaposed one by one in a community/ mobile park? Multiple locations in southeast Michigan especially are seeing the emergence of such communities.