Depreciation on Manufactured Housing

Industry pros offer their experience in manufactured housing to help first time buyers to make informed decisions with confidence and peace of mind.
Mare

Re: Depreciation on Manufactured Housing

Post by Mare » Tue Nov 23, 2004 8:53 am

Hello -

My fiance and I have just started looking into Manufactured houses in the western NY area. We are planning on buying about 10 acres of land - a corn lot - and making improvements to the land. We are thinking about a full basement as well as a garage, and shed - not to mention the basics such as well, septic, and driveway for the 1700sq foot house.

What I'm wondering is what is the average depreciation for Manufacured homes that are more like stick built, or Modular homes?

Thanks in advance.

Linda

Re: Depreciation on Manufactured Housing

Post by Linda » Tue Nov 23, 2004 4:03 pm

Appreciation being linked to location is true only if you own the location. If you purchase the home and not the land, the park owner has the appreciating location while all you have is a depreciating manufactured home.

In fact, over the last decade, through legal maneuvers and legislation, park owners nationwide have been quite successful at insuring that you will not benefit from any land appreciation.

The only way your investment will appreciate or even be safe is if you purchase in a tenant owned park.

rmurray

Re: Depreciation on Manufactured Housing

Post by rmurray » Thu Nov 25, 2004 6:55 am

I am not sure you are getting the point...your manufactured home on this 10 acres..will appreciate..OR..depreciate the same as any other type of home at this location...

Good Luck with your new home..

rmurray

Re: Depreciation on Manufactured Housing

Post by rmurray » Thu Nov 25, 2004 6:58 am

What you say is generally true...Homes in parks will not hold thier value....but there are exceptions..we see this on these boards all of the time..homes in CA..and some areas of FL are doing very well in the resale market..I am sure there are other areas that they do..

Linda

Re: Depreciation on Manufactured Housing

Post by Linda » Sun Nov 28, 2004 4:13 pm

BUYER BEWARE!

Owners of homes in corporate owned parks, ESPECIALLY well located parks in Florida and California have seen their equities wiped out entirely by corporate owners. All the park owner need do is raise the space rent outrageously upon re-sale and voila! You cannot sell your manufactured home for anything at all.

This recently happened to my parents as well as all 250 of their neighbors in what was widely considered to be the nicest park in the country, perched on a bluff overlooking the Pacific Ocean in Santa Cruz, California.

And this scenario is playing out all over the United States.

Buy only in Resident Owned Parks. Reputable lenders do not offer loans for purchases in non resident owned parks. And knowledgeable, reputable Real Estate Agents will not touch non Resident Owned Parks. Anyone who claims differently is either lying or is uninformed.

Chris

Re: Depreciation on Manufactured Housing

Post by Chris » Tue Nov 30, 2004 9:14 pm

Last year my wife and I bought 10 acres of land near Sweet Home, Oregon, as income property. On the land sits a manufactured home (Palm Harbor 41X52). I believe the previous owners paid $60,000 in 1997. We just got our tax bill from Linn County and they are taxing his home at $87,000 market value, not any land just the home. We were taxed for the land with a second bill. Now there are minor improvements, but not much. Is this something we should appeal? I thought that manufactured homes depreciated in value.

rmurray

Re: Depreciation on Manufactured Housing

Post by rmurray » Wed Dec 01, 2004 6:15 am

You were wrong..

Linda

Re: Depreciation on Manufactured Housing

Post by Linda » Fri Dec 03, 2004 1:46 am

murray is grossly misinformed and is misleading others.

Manufactured homes depreciate just like a car only WORSE because they are not easily moved. What appreciates in value is the land they sit on. If you do not own the land you will always be subject to the landowner raising rents at his sole discretion. And when that happens the manufactured home will be worthless. This has been tested in court case after court case all over the country. Check out a website www.MHCvsTheLilliputians.cjb.net. You will see testimony from mobile home owners all across the US who are suffering huge financial losses at the hands of landowners. BUYERS BEWARE

P.S. Chris,
If I were you I would definitely appeal. It is common knowledge that manufactured homes depreciate.

rmurray

Re: Depreciation on Manufactured Housing

Post by rmurray » Fri Dec 03, 2004 5:46 am

This man is talking about taxing authorities...taxing authorities tax by current use...not the value of the home if moved..if they did tax by moved value..

A $1,000,000 site built would be taxed at 0..Its value if sold to be moved...

Treat your manufactured home as a home...and you will do fine..treat it like a car..it will treat you like a car..Except finance is much longer..Therefore balances are much higher...If you insist on treating your home as a car...you should finance like a car...60 to 72 months...

As a matter of fact..this is why lenders have shortened the term on homes not on private property...they realize the cost of moving is so high..homes are NOT meant to be moved...Some nice parks in some of the best areas of the country have had fine returns for their owners...but just like privately owned real estate...location is everything..

Linda

Re: Depreciation on Manufactured Housing

Post by Linda » Sun Dec 05, 2004 12:40 pm

murray is right; even lenders realize if you don't purchase the LAND on which the manufactured home sits, you will merely have a depreciating asset much like a car.

The appreciating asset "Location, Location, Location" belongs to the Land (Location) Owner.

The moral of the story is "Buy only in situations where you purchase the land (Location) as well as the manufactured home."

Otherwise you will always be at the mercy of the landowner.

For stories from people all over the country who lost their home equities because they purchased in parks where they did not own the land visit this website: www.mhcvsthelilliputians.cjb.net

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