Buying a brick and mortar home is a significant investment—one of the biggest that most people make in their lifetimes. Despite the cost—and debt—associated with buying a home, though, the transaction is considered to be worthwhile. Smart real estate investments can hold or accrue value over time, making them a smart investment as well as a place to live. If you’re considering buying a park home, you may we wondering if the investment has the same value as a more traditional house. Said another way, is purchasing a park home worth it?
Park Home Finance
One thing you will want to know about before you buy a park home is how the financing works. When you buy a house, you would typically make a down payment of a certain percentage and then take on a mortgage loan to pay the remainder of the price of the home. Park home finance is different. You cannot secure a mortgage loan for a park home. You can only obtain a mortgage for properties that are listed on the UK Land Registry. Since buying a park home means purchasing the structure but not the land, it is not considered property in the same way that a house would be.
Instead, you will need to find a finance company that offers park home financing. As with a mortgage loan, you will probably want to shop around with multiple finance companies to get an idea of what your options are. Different finance companies will offer slightly different finance packages, structured based on the cost of your park home, the size and features of the dwelling, the residential park where you plan to live and more.
Ultimately, securing park home finance is not that different from obtaining a mortgage loan. Lenders will consider your down payment, your credit, your income, and other factors when deciding whether to offer you a financing package. Financing a park home might even be easier since park homes are usually considerably less expensive than brick and mortar homes. You probably won’t need as much financing as you would if you were taking out a mortgage loan. The crucial point to remember is that not all banks offer park home financing.
Lifespan of a Park Home
Another factor to consider when buying a park home is its lifespan. When you buy a house, it’s a promising investment in part because well-built dwellings can last hundreds of years if maintained properly. One oft-repeated drawback of park homes is that they don’t last as long as site-built homes.
With the right manufacturer, there is no reason that your park home can’t have a long lifespan. Maintenance and upkeep are still essential, and you may well have to replace structural components such as the roof every so often. All told, a well-built park home can last 70 to 80 years on average, and even longer with proper care. This figure is not fundamentally different from what you could expect from a site-built home. In fact, park homes usually require less maintenance to retain good condition than brick and mortar houses.
Deciding Whether to Buy a Park Home
Ultimately, you will need to decide for yourself whether buying a park home is worth it. The financing process can be confusing if you’ve never purchased a park home before, but no more so than navigating your first mortgage. Your home should last for years and years, so long as you find the right manufacturer and take care of the dwelling. Even though you won’t own the land on which your park home is situated, the leasing or licencing process is straightforward and should provide plenty of lifestyle security and peace of mind.