When it comes to investing in a property, a good option to consider is modular homes. It is a popular system in Scandinavia and North America for being a high-quality and inexpensive type of structure and starting to gain traction in the UK. So instead of spending all your hard-earned money on BTLs and HMOs, dealing with tenants or flipping conventional properties, why not go modular? There are a number of reasons to invest in modular construction projects.
Time is money (reduced time to completion)
As a developer or investor, the most important differentiating factors are the timeline and project management. Traditional construction takes over six to eighteen months to complete, whereas a modular home can be erected in significantly less time.
In a city where things take time to build, anything you can do to expedite the process without sacrificing quality is extremely advantageous. By using modular construction, the process becomes more streamlined. So while the site is getting set, the modules are being built at the factory.
Aside from the construction schedules being shorter, the fixed cost provided by the manufacturer significantly reduces the risk for the developer and investor. The cost is more predictable since the process is streamlined with greater coordination, fewer wastes, and reduced mistakes – and fixed delivery date.
Faster turnaround time
Faster turnaround is one of the major advantages of modular construction. For the investor, the faster turnaround means similar profit in half the time. In theory, you can do twice the number of projects in a year and massively increase returns. Modular construction allows for high-quality home and quick turnaround time that has helped developers and investors in the UK. It is revolutionising the construction sector and shows that buyers are attracted to the many advantages of sustainable living, modern materials, and even lower cost – without worrying about the compromised quality.
A modular home is often more sophisticated than a traditional home built by bricks and mortar. First of all, there are hundreds of designs to choose from, and you won’t lose flexibility by going modular. During the process, you can add options like extra outlets, upgrade flooring, or change the layout and specifications. Once the modules are installed, no-one will be able to see the difference compared to a traditional house. And because the modules are built indoors, materials are not subjected to harsh weather. And tradesmen shortcuts and snags are virtually a thing of the past..
Fewer delays and improved logistics
Modular construction reduces the major problem of temporary storage for building materials. As the units arrive 95% complete on the actual site on the agreed date, the materials need not be placed on the open space.
Likewise, management and coordination will not cause major delays or affect other project phases that otherwise will have to be rescheduled. The modular manufacturer will handle these processes effectively resulting in a smooth building process.
Reduced community impact
Traditional developments can have a significant burden on the immediate surroundings. It produces waste, noise, mud, and dust that are undesirable for people living within the community. In some cases, the planning authorities will impose restrictions that will not just increase project costs, but also complicate the entire building method.
Except for shipment and installation of modules, off-site construction reduces the communities suffering from unwanted pollution, noise, and wastes.
Sustainable and eco-friendly (increased popularity)
Many homeowners repair or rebuild to keep their properties in good condition. In some cases, people rebuild their homes to fix structural issues or dealing with pests and molds.
Materials used in modular construction methods are generally more environmentally friendly. The most common materials used for modular include timber or steel for the frame and drywall for panels. Other units are built with CLT panels that are more lightweight and easier to install than drywall. These are designed to have a high resistance to weather conditions, moisture, and molds. And because of these factors, the modular becomes easy to patch and repair.
Just like any other property investment, there is a risk attached to investing in modular, and results achieved will vary from investor to investor. There is, however, a good chance modular home’s value will appreciate over time, as the modern materials, design, and eco-friendliness become increasingly popular, ultimately affecting the values of properties built this way.
Vitae Investments can help you explore investment opportunities that benefit from the advantages mentioned above.
If you would like to learn how you can benefit from modular construction, either as an investor or a home buyer, have a chat with one of our advisors. Please email firstname.lastname@example.org, Call or Text +44 (0) 7365-515-684 or Book a free consultation here.