Modular homes have gained in popularity in recent years. What was once considered a cheap and low-quality housing solution, modular housing has come a long way thanks to advancements in automation and modular construction technologies in general. Although they still face some challenges, they could be the saving grace for Australia’s housing crisis.
While there are advantages and disadvantages to modular homes, the lack of knowledge on the subject by the majority of the population makes them less desirable than conventionally constructed homes.
If you’re on the fence about whether you should opt for a prefab home, or you’re just curious and want to check out the prefab homes NSW prices, this article should give you a clear idea of what modular construction is, some interesting facts about it, and what benefits it offers over conventionally constructed homes.
Modular Homes in a Nutshell
So, what are modular homes? Modular homes, or prefab homes are homes constructed in a controlled factory-like setting. Almost the entirety of their construction is performed indoors. As a result, there are no delays due to unfavourable weather, all of the construction crews involved are in-sync, and they’re built to the highest standards.
Most modular homes are considered sustainable, as they’re filled with environmentally-friendly features and fixtures. Furthermore, there’s less waste, as all the remaining materials can be repurposed for a different project.
You get all of this at oftentimes lower prices than the price you’d have to pay for an equal or similar conventionally-constructed home.
Modular Home Facts
- They can be constructed on crawl spaces;
- They can withstand heavy winds;
- Are considered green;
- Are constructed much faster;
- The same tax rates apply to them as conventionally-constructed homes;
- The loans are generally the same as conventionally-constructed homes;
- Insurance rates are the same as conventionally-constructed homes.
Advantages of Modular Homes
While they once were considered an inferior product, modular construction has come a long way in the past decade or so, and it has improved considerably in quality. In fact, modular homes match or even exceed the quality of conventionally-built homes.
This is mainly because modular homes are built in a factory setting to exacting standards and by people who are familiar with the processes. The product goes through extensive testing to meet the stringent requirements every step of the way.
On the other hand, a conventionally-built home is constructed by a dozen different construction teams, and if one builder doesn’t do a proper job or if the materials are kept unprotected from the elements, for instance, you’re going to face issues down the road from this type of neglect.
Modular homes are generally constructed much faster than conventionally-built homes. This is mainly due to the fact that there are minimum or no delays.
The materials for a conventionally constructed home may have to be sourced from all around NSW, and every supplier needs to abide by the timeline, which isn’t always the case. There are many scenarios where something goes wrong in the transportation process alone.
On the other hand, in a factory setting, the materials needed for the construction of a modular home can be found in abundance. As briefly aforementioned, weather can also delay the construction of conventionally-built homes.
Contrary to what many people think, prefab houses are usually less expensive. Do your due diligence on prefab homes NSW prices and you’ll quickly notice that you may end up saving as much as 20% compared to conventionally constructed homes.
Again, this is related to the fact that prefab homes are made in a controlled, factory setting where there are no chances of delays, less need for transporting materials and dealing with unexpected delays and fees.
Furthermore, you have the ability to finance your prefab home directly through the manufacturer. Oftentimes, the manufacturers themselves offer better financing plans than other lenders, so you get more favourable financing on top of a more affordable home. Of course, this may not always be the case, so again – do your due diligence.
Disadvantages of Modular Homes
The disadvantages of modular homes are mostly related to how the majority of people perceive them. For instance, selling a modular home can pose to be a problem, simply because there’s still the myth of them being lower-quality homes circling around. In other words, the aforementioned advantages aren’t taken into account when it comes to selling your home.
Additionally, getting a mortgage for a modular home is more complicated than getting one for a conventionally constructed home. Most builders want to be paid in full before the project is finished and they may require periodic payments to finance the whole process.
That being said, you may have to get a construction loan to pay the builder, which is changed to a regular mortgage after the project is completed. Doing your due diligence and comparing interest rates on your loans is essential if you want to make the most financially-smart choice. This will ensure you don’t overspend on a mortgage.
Furthermore, keep in mind that even if you decide to buy a modular home, you’ll still need to buy land to place it on. The cost of land varies based on where it’s located, but a lot of people are surprised at the end-cost of their modular home. That being said, you may also need to take into account costs for a septic system, connection to the utility grid, etc.
At the end of the day, going for a modular home provides more advantages than disadvantages. The only disadvantages are related to getting a mortgage and reselling the home. As long as you do your due diligence and go with a modular constructing company that’s been in the business for a while, you’re getting a superior quality product of your liking.
Keep in mind that every modular company has different designs and specialties, so shop around to find the one that’s capable of building the home of your dreams. A reputable manufacturing company will employ experienced people who can guide you every step of the process and answer all of your questions.