Al Kemp, executive director of MHPOA, confirmed, “There are more buyers than sellers,” while a real estate agent said for the first time he is seeing multiple bids on quality communities in the greater Vancouver area.
Kemp, noting that many of the homes are occupied by seniors who seldom move, said the average vacancy rate is 0.8 percent, making them appealing to investors who see steady cash flow and relatively high yields.
Larger investors are seeking MHCs with 100+ home sites, but will turn their attention to portfolios of smaller ones if necessary. However, smaller, private investors are often the primary buyers of the small-town MHCs that comprise the bulk of the inventory.
Community owners will able to raise rents 2.9 percent in 2016 under BC regulations, as MHPronews has been informed by biv. Kemp says you can buy a new MH for $120,000 in Vancouver and pay less than $600 a month for site rental.
Noting 60,000 people live in manufactured homes in BC, Kemp says more than investing in MHCs, the MHPOA’s message is the lower cost of living in an MHC compared to soaring house prices in the province, and that municipalities should use zoning and tax allowances to encourage development and upgrades of MHCs. ##
(Photo credit: castanet--Sunrise Village MHC, British Columbia, Canada)
