As shipping containers become increasingly popular for homeowners, more and more questions are being raised as to whether or not they are actually a worthwhile investment. What sort of lifespan can you expect from a shipping container home? And do they hold their value or will they depreciate significantly over time? These are all important questions and we will answer each of them for you as we explore the container home phenomenon in greater depth…
Do shipping container homes depreciate?
First of all, it is rather difficult to put a specific resale value on shipping container homes. You see, each container home is made using various methods and materials with minute points of differentiation, making it tricky to put a standard resale value across the board. In other words, there are a number of factors that can affect the resale value and indeed, its depreciation.
The initial cost of a shipping container home is a factor in depreciation
The construction of a shipping container home (whilst affordable in comparison to a traditional home construction project) is a relatively complicated process. Not only do you need good insulation, plumbing, and wiring, but there are other factors that affect the overall resale value of the container home itself
In addition to that, you have to take into consideration the market rate for shipping containers and then multiply that by the number of containers that were used to construct the container home in question. This will give you a rough idea as to the resale value of the raw shipping containers themselves, absent the multitude of other factors that will influence the overall value.
Depreciation does exist
Depreciation does exist, but it isn’t always the case with shipping container homes. It all really depends on the initial quality of the construction, the materials used, and the state of wear and tear on the shipping container home. Whilst the value of real estate might rise, it doesn’t necessarily mean that there will never be any depreciation associated with container homes.
Of course, popularity is also a factor. And by the looks of things, shipping container homes are not going out of fashion any time soon. So, whilst a shipping container home that has been kept in poor condition will likely depreciate in value, those that were built to an exceptional standard and are well-cared for will almost certainly fetch an attractive resale price if and when the time comes.
There are many things that can help you retain the value of your shipping container home
Another point that you should consider when worrying about the resale value of a shipping container home is the additional features and functionalities installed. If you have made a point of fitting your container home with green technology (e.g., retractable flaps, solar panels, etc.) then the resale value of your home will certainly be much more attractive to prospective buyers.
In honesty, if you are looking to purchase a container home solely for the purpose of investment, then you are likely better off spending your money on bricks and mortar. Container homes are not renowned for being the most lucrative investment opportunities. However, that doesn’t mean that they will be a waste of money. Container homes are sought after and will remain popular for many years to come. In fact, studies show that they will only increase in popularity, so, should you end up in a position where you need to flip your container home, you will likely not have much trouble doing so.
Be mindful of poor resale valuations
You should also remember that there are many factors that will influence the overall resale value of your home. As such, be mindful of poor resale valuations from various real estate agents. Just because the first agent you meet gives you a low valuation, it doesn’t mean that it is necessarily accurate. Do not take it at face value, question everything, and always get a second opinion.
What is the lifespan of a container home?
Most shipping container homes should last you at least 25 years. However, they can last so much longer provided that they are well maintained. You should also consider adding cladding to the side of the container home in order to protect the exterior. Rust is the biggest issue that influences the overall lifespan of a shipping container home, so taking steps to prevent that can indeed extend the overall longevity of your container home.
Are shipping container homes a good investment?
Honestly, there are worse things that you can invest your money in. There is a good chance that you can get your money out of the overall cost to build the container home in just a couple of years (not including the land itself). Yes, there are limitations and disadvantages to owning a container home (legalities on where you can build), but for many investors, container homes are an attractive investment opportunity.
The main thing, however, is that a container home should be sought out if it is the lifestyle that you want. Investing in a container home solely for the purpose of flipping it and making money might not necessarily be the most effective use of your time and money. However, that’s not to say that investing in a container home is going to be a complete waste of your time. Again, it’s all about quality. Going through a reputable and established container home manufacturer is the best approach if you wish to get the most out of your money. This isn’t something that you should rush and choosing any old manufacturer to convert shipping containers into a home is never a good idea. Choose wisely!
