Is it ever better to buy a mobile home instead of renting an apt?
Manufactured Homes August 2nd, 2009Sometimes, i’ve heard it’s cheaper to have a mortgage and rent space for a mobile home than renting an apt. If i don’t plan on buying a home for a while, until i know where to settle, is buying a mobile home an alternate option? Does this make any sense?
August 2nd, 2009 at 11:06 am
It’s hard to say without knowing what your numbers are. It depends on your cash flow. It’s true you build up no equity paying rent but you don’t build up much equity buying a mobile home either. It’s like buying a car. Like a car, the mobile home depreciates much faster than you can build up equity so for many years you’ll owe more money than the place is worth. Then, you have to find a trailer park that will rent a space to you. And if you find one, you’re at the mercy of the park, because what are you going to do if the park tells you to move out? What do you do with your home then? It’s a rather insecure home. Most parks are far from cities, too, which means you have to commute. Some jurisdictions don’t have any parks at all. As an investment goes, it’s no better than renting, at least for a long time till you start to get the loan paid off and build up equity.
August 2nd, 2009 at 11:06 am
While houses appreciate, mobile homes DEpreciate. They are not a good investment.
August 2nd, 2009 at 11:06 am
Mobile homes drop in value very quickly and are hard to ever sell for more or even what you paid for them!
daveramsey.com has a good website to follow.
It is better to rent and save like crazy (his plan works!) and buy a property that will increase in value over time.
August 2nd, 2009 at 11:06 am
I think I would prefer the mobile home over an apartment. At least you don’t have to listen to every step your neighbors take or every argument they have night and day. Although it has drawbacks too, you would probably have some equity in it when you were finished with it, unlike an apt.
August 2nd, 2009 at 11:06 am
You will at least get your money back when you sell the mobile home – possibly a lot depending upon what market you’re in. But take your lifestyle into consideration too. Mobile homes are generally in not so desirable locations on the outskirts of town and if you like to go out and meet your friends a lot, you may regret the move. (I’m speaking from experience.)