Bailout Bill
The $700 billion set aside for the acquisition of distressed properties — will it apply to mobile home parks? Many communities might have a stake in the answer. It certainly would not appear that such a use is going to develop. Nonetheless, many parks are in financial trouble. I spoke with a park owner in Harnett County, North Carolina who was struggling. He owned two parks that were both at about 50 percent occupancy. He was hoping for the days when dealers paid down on a spot in his park so that they would have an edge in selling the next home out on 15-501.
It is only worth mentioning because there is no doubt that both the park owners and park residents will be contributing to the costs for the creation of this fund. $700 billion! That’s a lot of money. That’s about one-quarter of the sum of the Federal budget in a year. Its almost twice the amount that the government (federal) spends on all of its discretionary programs — housing, nutrition, education, et al (not defense, social security, medicare, interest payments).
Filed under: Manufactured Housing in the News | Tags: Wall Street Bailout
Bailout » Blog Archive » Bailout Bill
October 13, 2008
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David Oxhandler
October 14, 2008
Mobile home parks are still the best investment on earth. With mortgage rates dipping below six percent the cost of all residential loans will go down including mobile homes in parks. The current market should be a gold mine for sharp Park owners. With e cost of homes out of the reach of many Americans a home in a park is an excellent alternative and park owners that are not promoting this are really missing the best opportunity in history to fill their vacant spaces. See the article Social fabric of mobile home park living has new threads at http://www.mercurynews.com/ci_10679047?source=rss
There are any number of reasons that a home in a park would be favored over one on private property today. There is a great article by Chrissy Jackson. “Private Property or a Land-Lease Community?” that cam be found online at http://mhweekly.com/stories.php?nid=5014 that should give park owners most of the ammunition they need.
Price is perhaps the greatest point in favor of a home in a park. Many well located, comfortable and secure location older homes in excellent condition can be purchased for about what the average home buyer would have to put down for a new home and land.
Any park owner that is not making it at this time should consider selling. At this time there are more buyers than sellers for mobile home parks, making it one of the few seller markets in real-estate. Take a look at http://www.mobilehomeparkstore.com where they are selling dozens of parks a month.
Mobile home parks have remained one of the most stable and predictable of real estate asset classes. The loan failure rate is nearly zero….Also, affordable housing is as much in demand today (or maybe more) than it was twenty years ago. And there are virtually no new mobile home parks built in the U.S. each year, so the supply side never increases. In fact, in some areas, such as Florida, the number of parks sold and converted to a higher use is alarmingly high. So, in effect, the number of parks in the U.S. is shrinking, not growing. More at http://mfdhousing.com/portal/stories.php3?nid=6711