A significant attraction of existing MHEs is the low-cost and access to redevelopment stock.
Ingenia has a strategy to buy back and recycle sites in their estates, most commonly occupied by permanent caravans. The sites range from $5000 to $40,000. They then presell a home for the site. Ingenia then orders it from ‘the factory’ which takes 6 to 8 weeks to manufacture, followed by 3 to 4 weeks to install – total 12 weeks.
Managing the cash, Ingenia obtains a deposit and payment terms for the manufacture of the home.
Through the journey Ingenia will have carried the site costs for say six months, building costs for two months and civics for two months.
Summarised, they receive their full development profit with their cash exposed for an average of four months plus they receive immediate site rental annuity ongoing from day of occupancy.