Frequently Asked Questions About Manufactured Homes and Living in Land Lease Communities
Why should I purchase a home in a land lease community?
- Residents desiring to preserve capital funds.
- Residents can use funds for other purposes.
- Does it make sense to tie up money in land?
- Money tied up in land is difficult to access.
Lower Capital Outlay
- Families and retirees are able to own their own home with less up front cash.
- Residents can live in higher priced locations they could not otherwise afford.
Lower Transaction Costs
- Cost of buying and selling land with title insurance, commissions, surveys, loan fees and other costs are significantly higher than costs associated with purchasing a manufactured home in a land lease community.
- Purchasing a manufactured home is more like purchasing a car. The title process is much less expensive.
Additional Costs and Exposure to Market
- Property taxes tend to increase dramatically from time to time. The base property taxes on manufactured homes are significantly less than a single family home on of a similar size because the resident is not paying the property taxes on the land component.
- The market value of land varies up and down with the overall real estate market which in certain economic times causes the value of a home on land to decline. Manufactured homes on leased land are not impacted by the decline in the value of the land they occupy.
Ease of Sale
- Manufactured Homes are lower priced than alternative housing for the same livable square footage which means a larger group of potential purchasers are available to purchase a manufactured home.
- Costs of sale are significantly less.
- Transfer of title is relatively quick and easy.
- Sale can be concluded quickly, often in a few days versus a land based home that can take weeks or months.
Similar to Owning a Single Family Home Located on Land
- No common walls as in apartments and condominiums.
- Parking for multiple vehicles in a private driveway next to your home.
- Small yards that are easily maintained but still allow for gardening, children’s play areas and pet accommodation.
- Minimum of steps unlike apartments or condominiums that may be on second or third floors of a building.
- Individual utility meters that allow the resident to pay for their individual usage.
Recreation Areas and Common Facilities Often Provided for Residents
- Swimming Pools
- Spa Pools
- Laundry Facilities
- Central Secure Mail Delivery
Major Maintenance Provided by the Ownership and Management
- Street repair and maintenance
- Tree trimming
- Utility system maintenance
- Street light maintenance
- Common area landscaping
- Common area facilities maintenance
Enforcement of Community Guidelines
- Management enforces the rules and regulations to maintain the quality of the community.
- Management can act as a mediator to resolve neighbor to neighbor problems.
Safety and Security
- Management tours the property daily and notices if something does not look right.
- Residents tend to look after their neighbors because residents are often long term residents of the community.
- Because residents tend to be long term residents there is peace of mind that neighbors will notice if a strange occurrence happens while a resident is away for an extended period of time.
Network of Friends
- Easy for residents to meet people through community social events or use of the common area facilities.
- People with a commonality of purpose and interests tend to congregate together.
- Community is not operated by volunteer boards with their own agenda.
- Community managers and staff take care of day to day operation of the community.
- No community politics or conflicts of interest in making decisions that impact residents.
- Management deals with sensitive matters fairly and objectively.
Build Equity Through Ownership
- Much better than paying apartment rent where nothing is recovered at the end of the tenancy.
- When resident leaves there is equity to take to the next housing choice.
- Pride in ownership.
Cost to Own Versus Cost to Rent
- Often costs less to rent than own.
- Borrowing money is essentially renting the money for your use to purchase other items.
- Everybody rents or leases items used for a specified period of time all the time, this includes such items as hotel rooms, airline seats, cars, mini-storage units, furniture and many other items.
- When a person rents or leases the person only pays for the time or item used.
Pride of Ownership
- A partnership exists between the resident who owns a manufactured home and the community owner to properly maintain the community and individual home sites.
- It is advantageous to both the resident and the community owner for the community to have a great overall appearance. This creates higher resale values of the individual homes and a higher value of the total community for the community owner
- Manufactured Housing in a land lease community is the best alternative for a large segment of the population. This style of living offers individual home ownership at a fraction of the cost of alternative types of housing
Why should I buy a manufactured home?
- Lower Cost: Per square foot, the price of a manufactured home is less than that of a site-built home.
- Factory Precision: Factory built homes are not subject to weather delays, vandalism and high on-site construction wages. Materials are bought in cost-saving volume, resulting in more efficient construction than conventionally built homes.
- Low Maintenance: The efficiencies of factory production and the constant updating of design and engineering aspects have kept maintenance costs of manufactured housing low.
- Quality Control: Manufactured homes are designed to be transported. Assembly line materials are of the highest quality. Federal Government code regulates factory certification and conducts frequent quality assurance inspections.
- Options Available: The price of a manufactured home includes not only the structure, but also typically major appliances, carpeting and window treatments. It also typically includes the cost of transporting the home, lot development, steps, skirting (or siding), concrete work (such as drives, walkways and patios) and full setup. Many options and color choices are available to the discriminating home buyer. Furthermore, some lines can be structurally customized to your needs.
- Reduce the Property Tax Burden: Property taxes on manufactured homes are much lower than those for site-built homes.
Where can I find the model and serial numbers on my current home?When the home is manufactured, a plate is affixed to the back of the home.
Do you have any used homes available?
As in all housing communities, typically there are pre-owned homes available for sale.>