Issue link: https://read.dmtmag.com/i/506676
MAY 2015 22 THE JOURNAL Ask Eddie BY ED HICKS DEVELOPMENT MARKETING As someone who has always lived in an apartment or site built home in my younger years, I am now approaching retirement. Why should I seriously consider purchasing a man- ufactured home? Jeffrey J., Plano TX Those approaching retirement who are inde- pendent, read as "not one of the sheep", enough in their thinking to consider all the issues which may be facing you, an objective look at manufac- tured housing may be in order. I am not referring to consideration of older, sub-standard constructed "trailers" in obsolete rental parks, which may often come to mind, but real qualify factory built housing built in compli- ance with the strong, effective, modest cost HUD building codes, and properly installed on an ade- quate foundation or other approved siting system. When these attractive, safe, and well-built homes are installed in a seniors 55+ age restricted land lease community, as a new home or as a re- sale, the choice has many features and benefits to consider. If you are purchasing a new home, you have a choice of floor plans, decor, and design to match your tastes. In fact it becomes in effect a "custom" home. Living space is less, requiring adjustments in the use of furniture, but also more efficient in terms of use and accessibility. In most well managed communities, especially those which have significant in-community amenities or strong locational interests, home val- ues will appreciate at or above the rate of other area housing alternatives. Don't believe me? Just find one in you area and review the changes from new to resale home prices. Of course, the results are going to vary with the specific commu- nity and the market area. When you consider the amount of equity, which you will realize on the sale of your home, and how much may be left over after the purchase of a m/h, the size of the residual capital may sur- prise you. Over time, the costs of maintaining a site built home and homesite can be daunting and expen- sive. In many communities, homesite mainte- nance is a must. Less square footage means less house cleaning. And, down go the utility ex- penses when heating/cooling and providing water/sewer services to smaller homes. And, when provided for by the community the elimina- tion of the need for expensive maintenance equip- ment, chemicals, and tools for the homesite and lawn. More time to play and less to continually clean up. Property taxes will vary with the state and local laws, but in many cases provide for a substantially lower rate than for site built homes, especially over time. And, when the home is treated as real es- tate in a land-home configuration, such as in a cooperative, or homesite condominium commu- nity, your home will also qualify for Homestead exemption and status. As time progresses, and you build equity, as real property, you may be able to use the ability for using a reverse mortgage to crease additional long term income, supplement- ing your income needs. Most of us, as we progress in life, are normally concerned about increases in living cost when faced with a "fixed income" future. Many com- munities now have rent escalation clauses in them, which provide resident homeowners with protections against "unconscionable" increases, changes in land use, or "adjustments" in commu- nity utility or other services with adequate com- pensation. Resident's associations now have more oversight and control than ever before though the introduction and passage of reasonable state and local laws. Living in a retirement community in which reg- ular management oversight and compliance with lease regulations for the benefit of other resi- dent/homeowners homes and homesites is now, more than ever important. This is especially true when even in high priced site built home neigh- borhoods, home foreclosures are a serious "blight" on the value of your home and the community. Although today's chattel mortgage home fi- nancing terms are not yet on a par with site built housing for m/h sited in land lease communities, for cooperatives and condominium fee-simple transactions, they are coming closer. Resale fi- nancing terms using the FHA Title I program, are about as close as they can be now. And, with the more available equity from the sale of their previ- ous residence by older buyers, and generally have better credit, many communities can effectively be competitive with other housing alternatives housing expenses. The quality, strength and durability of factory built, HUD code homes constructed after passage and national implementation of the 1974 Housing Act, have steadily improved resulting in signifi- cant resident protections against fire, earth- quakes, high winds, all at a reduced housing cost. Energy efficiencies have lowered monthly ex- penses, and new floor plan designs have created interior designs which rival the best and most cre- ative of comparable site built housing. And, don't forget the positive community lifestyle aspects: you will be living with your peers, sharing your leisurely lifestyle together in a collec- tively protected environment, secure in the knowledge that you home, community, and se- curity are as safe as they can be reasonably made. And, your financial stability may be protected in the context of fixed income issues with all of today's increases in utilities, taxes, fuel, food costs and other expenses which are out of our di- rect control. Edward "Eddie" Hicks, lic. RE Broker, and Lic. Mortgage Broker has been a manufactured housing community devel- oper and industry consultant, retailer and home manufac- turer since 1963, and is currently a manufactured home resident and the sales manager for a seniors Age 55+ m/h condominium homesite community in Central Florida: Hid- den Harbor on Lake Harris. He may be reached at (813) 300-6150 and at easteddie@aol.com His websites are: www.mobilehomepark.com www.factorybuilthome.com T J