Is buying a park model a good investment?
The Short Answer
A park model is usually a lifestyle investment more than a financial one. Like most RVs, the unit itself typically loses value over time. It can still make strong financial sense compared to building a cabin, paying rent, or booking vacation rentals, and some owners offset costs by renting it out where allowed.
Be Clear-Eyed About Depreciation
Park models are titled as RVs, and like RVs they generally depreciate rather than appreciate. That is different from a house on its own land. If your goal is pure appreciation, the land a park model sits on is more likely to gain value than the unit itself.
Where a Park Model Pays Off
- Versus building a cabin: A park model typically costs far less than a site-built cabin of similar quality, and it arrives finished.
- Versus vacation rentals: Families who spend every summer at the lake can stop paying weekly rental rates and enjoy a place that is theirs.
- Versus rent: Where full-time occupancy is allowed, a payment plus lot rent can compare well against rising apartment rents.
- Rental income: Some campgrounds and resorts allow owners to rent their units when they are not using them. Policies vary, so ask first.
- Resale: A well-maintained unit from a respected builder holds its value better and is easier to sell when the time comes.
Protect the Value You Have
Buying from an established manufacturer, setting the unit up properly, and keeping up with roof, seal, and winterization maintenance all help a park model hold its value. Keep service records, since buyers ask for them.
