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Use Land and Manufactured Homes to Take Financial Control



Use Land and Manufactured Homes to Take Financial Control


One way to take financial control of your future is by buying inexpensive land and using a manufactured home as your residence. Enjoying affordable housing as part of your desire to be financially independent is possible with some planning.

Cantu Land Plus’ mission is making property ownership possible. You can achieve property ownership and an affordable lifestyle by purchasing land parcels and buying a manufactured home as your primary residence.


Buy Your Land Vs Living in a Community

Be careful about buying a manufactured home in an existing community. The issues are complex since many residents in a Manufactured Home Community (MHC) own their dwelling but rent the land. Developers are eyeing those communities to buy and hold for the long term.

A December 2020 report in Commercial Property Executive notes that the transactions come with upgrades and “with that has come the increase in lot rents to pay for these improvements … and that is leading to resident turnover.”

If you own a manufactured home in a community setting, you can still have a loss of control over your financial future.


Evaluate Your Situation

Buying land and placing an affordable home on it is a strategy that fits many different lifestyles. Make sure you know your purpose for owning land.

If you have a young family and you’re just starting out in your career, then owning property that you landscape while living in a larger manufactured home can be a smart choice.

It’s also a smart move for many older couples who want to downsize from the homes where they raised their families.

Having a “pioneering” or independent spirit helps if you’re looking at turning raw land into a home that will meet your needs for years. There are also many lots and properties with all the utilities and infrastructure in place and ready to use.

Evaluate your skills and job prospects, especially if you’re younger. Most undeveloped land is in areas outside of larger or medium sized cities. That can impact your job prospects.

If you’re in a career like construction or work in an office setting, will you have to commute far from home?

Today’s online entrepreneurs and white- collar professionals can work from a variety of locations so you may have more flexibility.



Buying Your Own Land and Home

The move has to work financially.

If you’re a younger family or couple, then list what you pay for rent. Or, if you were to buy an existing home in your area (a traditional real estate transaction) then evaluate:

· how much are home prices?

· what would you have to put down to qualify for a home loan?

· how much would you pay in taxes and insurance?

· What’s the condition of a home you might buy and how much will improvements cost you in the first five years or decade?

Buying land can give you the place you need for an affordable home, but there are costs to be aware of. These are covered in the free e-book Your Guide to Buying Land: The Heart and Soul of America.

You’re going to have some expenses so ask:

· How much grading or preparing of the lot is needed?

· Do utilities need to be brought in or are they ready for hook-up?

· Do you need a septic tank or system?


Doing this basic math will clarify the picture.


What to Expect

Homeowners hope to build equity in their properties and that’s one of the motivations for owning a home and not paying rent. The closer the land that you buy is to a growing metro area, then the more likely it is to appreciate in value. Don’t expect your manufactured home to gain appreciation.

However, it can still be a financially smart move. If you don’t have to stress yourself or pour money into home improvements or high rent, you can have money to invest in other assets like stocks and mutual funds.

That can be your vehicle for growth so that your equity isn’t all tied up in your home.


Check with Sandra Cantu

Sandra uses her 35 years of real estate experience to help her clients understand the moves that they’re making and to be totally satisfied with the outcome of their decisions.

Contact her if you’re interested in buying land or disposing of a property. She can also bring sellers and buyers together.

And remember to download the free e-book, Your Guide to Buying Land: the Heart and Soul of America.

Get informed with these previous blog posts from Cantu Land Plus.

Learn more about manufactured homes through the Manufactured Housing Institute.