Manufactured Homes: Friend or Foe?
Manufactured Homes August 27th, 2010I always have a fear of buying a manufactured home vs a stick built. I’m a first time homebuyer and really rather own than rent. I looked at various real estate agencies that sell stick built and manufactured homes. A stick built that falls within my range are 2 bedrooms 1 bath and are built in 1909-1920, while a manufactured home has 4 bedrooms 2 bathrooms and is 30K less than a stick built home and is built around 1998. I’m not planning to stay in the city more than 2 years until I’m finished with college, I have a very good credit score and manage my finances very well. I have a lot of reservations about purchasing a manu home because I fear that there must be something wrong with a manufactured home because the price is so cheap Can anyone give me insight on this? Is buying a manufactured home a horrible idea for a first time homebuyer?
August 27th, 2010 at 8:25 pm
If the MH is on its own land, and alot of the depreciation is already out if it is a 1998, I’d suggest you go for it. When you are ready to sell 2 years for now, you may not get what you paid for it, but you didn’t throw money away renting. Don’t make a bunch of high dollar improvements such as custom draperies, hot tub, new cabinets and expensive carpeting. It won’t help the value.
If it is in a park, you will lose money on it and it is not a good investment.
MH will never hold value like a stick built house does.
August 27th, 2010 at 8:25 pm
I wound’t tough it out. That’s always the first place a tornado hits. Good luck!
August 27th, 2010 at 8:25 pm
the manu. homes are very well built now a days, but the fact is that they are a fire hazard. they completely burn in 5 min. If you feel comfortable that you could loose all your possesions in 5 min, then i would go with the manu. home
stick built is still risky, since its so old. but you have 5 min to get out, not die in flames
August 27th, 2010 at 8:25 pm
Buy a real home not a manuf home. The problem with manuf is that they depreciate in value so you may as well be renting. A real home will appreciate in value. But seriously, if I were you and I was only going to live in the home 2 years or so, I would just rent. You can always buy a home once you land a good job and settle down somewhere after college.
August 27th, 2010 at 8:25 pm
Stick built are still better even for resale. What is more important, are you going to sell it in a couple of years or is this a purchase for keeps? Don’t buy anything you have to remodel unless you are specifically in that business and know what to look out for. Also if you go for an older home, make sure it is one that has updated wiring and plumbing, you don’t want those kind of expenses on your hands.
August 27th, 2010 at 8:25 pm
I have to agree with some of the comments. While manufactured homes are built better, they are not always a better resale. Lenders have tightened up on manufactured homes and usually require a larger down payment so obtaining financing on a refinance or for future buyers could become an issue and cause the property to depreciate.
Stick builts are always better. You can purchase a home for yourself and rent later. Better yet, why not look into purchasing units 2 or more. While they may be more expensive, you also have tenants that pay rent in the other units to help you make the payments. Then when you move in two years you now have a great investment property that pays for itself. BUT most important, if you think of going this route, make sure you find a real estate agent who actually invests in properties like this as they know how to find you the right deal so you don’t end up in a financial mess later. In other words, find someone who practices what they preach.