Lifespan of Palm Harbor Home

[John]

David, how can you say that the homes in a park appreciated in FL. You need to determine the true cost of the home and to do that you need to add in the lot rent because that is part of the cost of the home so if your $12,000 home pays $200 per month for 20 years the actual cost of the home is $60,000 not $12,000 so it did depreciate. The only place where it seems they don't depreciate in a park if CA and you cannot compare anything to that market. Buying any home without the land it sits on is a bad investment.

[David Oxhandler]

John -

Where did you learn Voodoo economics? That home gave me quiet a bit of profit each month. What kind of accounting adds the income back as an expense?

As far as the lot rent - there is an overhead to operate any kind of structure. If I owned the land I would have been paying taxes and higher insurance, would have had to mow the grass and maintain the grounds and provided my tenants with streetlights, sewer services and trash pickup all those years

If after enjoying ownership, and turning a profit, every month for years, I sell that structure, for more than double what I originally paid - at least in the accounting classes I took - I made a profit - I'm sure of it because as good as my accountant is, Uncle Sam insisted on his cut.

[John]

David, No voodo economics here because you are using income producing property not owner occupied property and the original question was about owner occupied. Any way you look at it lot rent is an expense that you never recover and is not an asset that you can sell unlike owned property. Except in a few instances, buying a home on rented land is a bad investment regardless of what accounting method you use.

[David Oxhandler]

John -

Im sorry but you are wrong. Your thinking is from 1950. You are reworking the facts to fit your outmoded thinking. Regardless if the home is income property or a personal residence there is an overhead to operate any kind of structure. If I owned the land I would have been paying taxes and higher insurance, would have had to mow the grass and maintain the grounds and suffered the cost of streetlights, sewer services and trash pickup all those years.

There really can be no doubt, a sales price that is three hundred percent greater than the purchase price indicates a serious profit and appreciation.

[Taylor]

I have been a real estate broker since 1969 and am now semi-retired and only handle a few transactions each year for friends. In our area manufactured homes from 1970s are selling at $160,000 on land or lots and banks are financing them. Site built homes that are smaller are selling for close to $200,000 and site built homes the size of the mfg homes are selling close to $300,000. I am amazed at this but I check the MLS every day and see it. Mfg homes in parks aren't a good investment as when land values get high enough then parks will evict the mfg and put in a subdivision or commercial.

[Barry Blythe]

When you title a manufactured home like a car it is not on its own land. In California the home is not titled like a car if it is on a permanent foundation. I think your position is correct when looking at a mobile/manufactured home set up on a space in a mobile home park, but not on the owner's land on a permanent foundation.

[JOHN]

HI PENNY,
I INSTALL 20 TO 40 HOMES A MONTH AND I CAN TELL YOU PALM HARBOR IS A GOOD HOME AND A SOUND INVESTMENT. BUT THE GUY THAT SAID A MOD IS A BETTER INVESTMENT IS RIGHT AND THE NUMBER ONE HOME BUILDER THAT HAS THE BEST MODULAR IN THE BUSINESS IS DISCOVER CUSTOM HOME, WHICH IS BUILT BY PALM HARBOR.
GO TO DISCOVERCUSTOMHOMES.COM TO SEE FOR YOURSELF. THANKS

[Candi]

Just a quick correction.......www.discoverycustomhomes.com

[Sylvia]

We bought our home in September of 03 for 38,900 on land in town. It's considered real estate not just a manufactured home in Iowa. Although we haven't had it appraised officially. The realtor finally came over and brought us our "closing gift" this spring. Because of the improvements we've made to it, he guessed a value of 75k. The insurance replacement value (insurance replacement value is home value only not the land) of 85k. The assessor valued it at 60,000 and depreciated many of the stick built homes. (the tax value is always under the true value considerably in this area)

So, in the right conditions, you're still going to see it appreciate. Good luck!

[Rene']

I live in northern Arizona, about 15 miles north of Prescott, called Chino Valley. The area I live in is rural and I'd say about 60 - 75% of the housing out here is manufactured form really old to brand new. Most of what gets built out here is brought in on a truck. There are new Shultz homes selling for over $100,000 - no land included! There is a manufactured home about two miles from me. It sits on an acre of land. It is fenced, and somewhat landscaped, no garage or other out buildings. It may be 5 +/- years old and has the pueblo style exterior. It is on the market for $270,000. The real estate market has exploded in this area. We get quite a few people moving here from California. Out here it doesn't really seem to matter that much wether it is site built or not.
I also want to say something else about manufactured homes. When a home is site built it goes through a series of inspections. The inspections pertain to certain aspects of the home, foundation, plumbing, electrical, framing and so on. Not every house is made with the same construction process, and workmanship is not inspected only that certain things meet minium codes for the area. Contractors will cut coners in every possible way to increase their bottom line. Unless you are very knowledgeable in home building and quality construction, able to do your own inspection of materials and workmanship, an owner could easily get screwed.
When a manufactured home is built the quality of the materials are always the same in every house. Everything is inspected as it is built in the factory and must meet a standard not a minium. There is value in consistancy.
Speaking as a person with a degree in Architectural Design, I've seen what can pass a code inspection around here and I'd rather have a manufactured home anyday. Site built is not always better.
I moved from a site built home in one of the best neighborhoods in this area. It was horribly built and terribly insulated. I moved to this 22 year old Golden West home and have lower utility bills. Yeah, it has its problems and needs some love but I am impressed by its construction even at its age. The new models, in my opion are better than almost anything site built as far as quality. Granted there are some disadvantages in the design area where you can not be creative, but the value is definatley there and you don't have to visit the site daily to be sure it is being put together right.
When I move from this house I would most certainly consider another, given the proper geographic location. No matter which way you decide to buy do your homework. Don't let anyone one discourage you with outdated views. You can certainly get more house for your money. Properly located and permantly set - there isn't any reason for it to not appreciate. I recommend that you find a nice piece of property, not a park unless your retired. Set it on a good fountation, I suggest looking into the Sure Safe System - FHA loves it. And enjoy your life! Don't spend your life making a morgage payment.