Shipping Container Homes: Are They A Good Investment?
POSTED ON WEDNESDAY, 22 JUNE 2022 20:21
Shipping Container Homes: Are They A Good Investment?
With the housing market rising unpredictably, some people forgo living in condominiums and large homes. Instead of buying residential real estate, they convert a shipping container into a house. Living in a shipping container home isn’t for everyone. However, investing in one is comparable to buying a traditional property.
If you want to try living in something other than a typical house, you may find the idea of a shipping container home fascinating. But it’s still a big decision to make. This article lists some factors to help you assess if you should invest in a shipping container home.
1. Size
One significant reason why some people enjoy living in a shipping container is its compact size. Containers often come in standardized sizes, so it’s easy to choose the one most suitable for you. You can find a shipping container (20ft+) that’s secure and strong enough to withstand the elements to convert into a home.
However, its size is also the reason that turns other people off. Some containers are only eight feet long and six feet high, which is much too small for most people. The interior will get even smaller if you consider installing heating, ventilation, and air conditioning (HVAC), plumbing, electrical wiring, and insulation. Shipping containers are also narrow, so traditional furniture may not fit inside.
Couples or people who live alone may benefit from the small proportions of a shipping container. Those who prefer a minimalist lifestyle will enjoy living in one, too. Even if you don’t plan to live in one, you could invest in a container home to rent out to vacationers. Some do this while waiting for the container home to appreciate so they can profit from their investment.
2. Safety And Durability
Everyone deserves a home that can withstand harsh weather conditions. So, you’ll probably have some doubts about living in a shipping container home. That’s understandable since a steel box isn’t the first thing on people’s minds when they think of a sturdy home.
However, shipping containers are durable. That’s why people began converting them into homes. Since they’re originally designed to protect products from intense pressure and terrible weather, they’re bound to protect their inhabitants from the same. So, it can be worthwhile to invest in shipping container homes.
On the other hand, there’s the factor of the containers being made of steel. Steel tends to rust when left exposed to water and wind. Furthermore, some containers have been chemically treated to ward off pests. If you wish to invest in a shipping container, you must have it checked and cleaned adequately before turning it into a home. You might want to have this done professionally to avoid health risks due to chemical residue.
3. Flexibility
If you’re planning to invest in a shipping container home, there are several ways to put one to good use. Aside from residing in it, you can also:
Rent it out to tourists, tenants, or groups
Convert it into a commercial or co-working space
Fix and flip the property
Buy it and hold it out to gain income
Any of the above are viable investment options, so you can choose whichever suits your interests. Physically speaking, shipping containers are more easily modifiable than typical homes. You can turn it into a residence with multiple floors or elevate it off the ground to make it an eco-friendly home. You could even include stairs, a patio, and windows.
There’s so much room for customization, which makes shipping container homes increasingly popular in the market. You can easily attract first-time homeowners who don’t want to spend much on residential space.
4. Low-Risk Investment
There’s a considerable market for shipping container homes. With the increasing cost of living, many people feel compelled to downsize and move into smaller homes. Many millennials and Gen Z individuals also choose to live in smaller dwellings. So, you’ll eventually find someone willing to buy a shipping container home from you.
Investing in a shipping container home is a low-risk move. Firstly, they’re much cheaper than traditional homes. Secondly, the containers are easily convertible and can fit on smaller plots of land. Container homes also tend to last longer than mini houses with the proper maintenance.
As long as you do things right, investing in shipping container homes is more profitable than investing in stocks. It’s like investing in a traditional residential property that could increase your cash flow well enough to provide for your present and future needs.
5. Location
Shipping containers are small enough to turn into homes and do not require a sizable piece of land. In states where land prices are prohibitive, minimalist homes are becoming more popular since they take up less space. Investing in a shipping container home near the beach or natural parks to rent it out is a practical option as its value will naturally rise due to its strategic location.
It’s essential to consider the location before building a container home. Try avoiding places prone to heavy rainfall that could cause it to rust. It would be good to pick all-season tourist spots. If you want to rent it out as much as possible, the location needs to have enough traffic for you to gain the most profit.
Note that some areas may require a permit for your shipping container home. You may also need land ownership and permission from the local municipality. When in doubt, request the help of a contractor to assist you with the procedure if you plan to invest in this unique type of home.
Conclusion
Shipping container homes are quickly becoming the favored accommodation for young and first-time homeowners. They’re affordable, easy to customize, and excellent for novice investors. Investing in a shipping container home early in your career is wise as it lets you try your hand at investing while earning a significant passive income.
AI
