Is a Log Home a Good Investment?

We all want to make good investment decisions and building or buying a log home is no exception. You can look at it from two perspectives, either a place to live or to rent out. One of the most significant benefits of investing in a log home is they never seem to go out of style! It won’t matter if it is built with log siding or full logs to retain its value.

 Build or acquire your log home by first making sure it is built by one of the best contractors available in your area. Next, make sure it is made of the highest quality materials you can afford. Once you or tenants move in, make sure the exterior and interior are kept in tip-top condition and perform any timely and necessary repairs.

What Makes a Good Investment?

Simply put, a good investment appreciates over time to give a profitable return on the original cost according to the investor’s goals. A good investment is also based on a person’s personal risk tolerance. What’s good for one individual may not be considered ‘good’ by another person.

The components of any ‘good’ investment are essentially the same, including:

• It is fairly valued from the start
• The underlying value will increase over time
• It is essentially a liquid investment
• The investment generates income regularly or when sold
• You understand it and its risks
• It is protected, and in this case, means it is insured

An investment in a log home meets all these requirements and should increase in value when it is maintained correctly and regularly. If any part of any house is neglected and shows deterioration, it will lose value even in a seller’s market. Your log home builder or building materials supplier will teach you how to keep a log home looking new.

Log Home Popularity Is on the Rise

• There were 10,676 log and timber frame homes built-in 2017.
• This represents a 22.7% increase from 2012’s 8,700 log and timber frame homes.
• The revenue from sales in 2017 was $940 million, or a 56% increase from 2012.
• More construction companies are building log homes now than in the past.

The popularity and investment potential is not a U.S. phenomenon because log home sales are also growing in Canada, Europe, and Asia.

Does Geographical Area Make a Difference?

 The geographical area does have some bearing on log home sales and investments. The 10 states that show the highest percentage of log homes in the U.S. are: 

 Many other states are showing steady growth spurts for not only log homes, but also for log businesses, state and natural parks, motels, and museums. Now is a great time to build a log home to sell or rent no matter where you live.

Log Cabin Versus Log Home

• Purpose and frequency of use – Vacation retreat, rental, or full-time living
• Cost of construction and maintenance – Cabins cost less to build and maintain
• Degree of modernization and furnishings – More rustic ones cost less
• Location: Lake, mountain, or suburb – The location can demand a premium price

Sales reports reveal it doesn’t matter if you’re renting or selling a cabin or larger house, the public wants both of them. As a bonus, the cost of construction materials is on the rise that adds to the market value of any log siding or full log structure.

Build Yours with Log Siding and Experience Big Savings

You can have the full log look with pine and cedar log siding and avoid the higher cost of full logs. High-quality siding, trim, paneling, flooring, doors, and other supermaterials are available online from the Log Home Shoppe. Check out all the great buys and receive hand-inspected, defect-free wood products at fair prices. Call us today!

References and Resources

Log cabins

A good investment