|
Home::Real Estate
Why Buy Mobile Homes?
Author : Steve Gillman
You can buy mobile homes for much less than stick-built houses in most areas of the country. Despite the common predjudice against them, mobile homes are the cheap housing choice of millions. While the advantages are not always obvious, they are real.
One of the advantages is fast equity buiding. You see, the myth about mobile homes depreciating is only half true. In parks they generally go down in value over time. Buy mobile homes on land, though, and they'll usually go up in value.
Buy Mobile Homes With Real Estate
My first home was a mobile, and it doubled in value in the twelve years I lived in it. The home deteriorated a little (don't all houses?), but the value of the land rose. With a lower price than a "stick-built house, the mortgage payments were lower. Because of the shortened amortization (seven years), and lower loan amount, I built equity fast.
Buy Mobile Homes To Build Equity Fast
A house with a $100,000, 6%, 30-year mortgage loan gives you a payment of $599.60. $500 of the frst payment will go to interest, $99.60 to principal. You built equity of $99.60 (I'm ignoring appreciation for the moment).
A mobile home on land, with a $30,000, 8%, 10-year mortgage gives you a payment of $363.99. The higher interest rate is normal with mobiles. The shorter term is normal too, so you'll own the home free-and-clear in 10 years instead of 30. The first month, $200 will go to interest, meaning $163.99 goes to principal. You built more equity in this scenario.
A mobile home on land might appreciate more slowly than a "regular" house, but faster loan pay-down probably may cover this factor. Now, if you also chose to bank the difference in payments ($235.61 per month), you'd definitely be better off financially with the mobile home versus the more expensive home (Except during times of fast appreciation).
You can pay less per month and build more equity. Your real estate agent won't tell you this, and don't expect him to agree even after you explain it. Math skills aren't part of the licensing requirements (at least they weren't when I sold real estate).
Other Advantages
You can do what you like with the home when you own the land. I rented rooms in my home, and took in more money than it originally cost.
Mobiles are cheap to maintain. I once had a furnace die in a mobile home I owned as a rental.This is about the most expensive repair you'll have in a mobile. I replaced it for $1,200, which is much less than a furnace for a larger home. For $200 you can tar the roof, or $30 if you do it yourself, instead of $5,000 to re-shingle a traditional roof. Windows, plumbing, and doors are all cheaper.
Property taxes, because they're based on value, cost less. Insurance is less because you're insuring less value. Just be sure you can get insurance before you buy. Some old mobiles may be uninsurable in some areas.
I wouldn't buy a mobile home if house prices for houses are just as low in the area. We bought a house near Butte, Montana for $17,500 - less than mobile homes for sale there (See a photo on our site).
Will your own needs and predjudices let you be comfortable in a mobile home? It's something to consider. They may be in areas you don't want to live (true of houses as well). These are personal things you have to consider.
Why buy mobile homes? The advantages are clear for young people starting out, who may have no other options. It may also be your better option, when you consider the lower price, the simpler, cheaper maintainance, lower monthly payments, low property taxes, lower insurance costs, and faster equity build-up. Why not buy mobile homes?
Article Source: http://www.articledashboard.com
Steve Gillman has invested in real estate for years. See a photo of a beautiful house he and his wife bought for $17,500 on his home page, or go straight to the section on Investing In Real Estate: www.HousesUnderFiftyThousand.com
Spam emails More free articles Related articles
|
More related feeds |
Evacuee talks about aftermath of Oakridge Mobile Home Park fire ...
Evacuee talks about aftermath of Oakridge Mobile Home Park fire. A young couple with two small children salvaged slightly-charred pieces of a nativity scene from their home at Sylmar’s Oakridge Mobile Home Park. ...Residents return to LA mobile home park destroyed by wildfire ...
LOS ANGELES (AP) - A sad procession of residents returned Monday to see for themselves the devastation wrought by a wind-swept wildfire that incinerated nearly 500 houses in a neatly kept mobile home park. ... Happiness, fear and hope at Oakridge mobile home park in Sylmar ...
But the neighborhood was a little dicey, so in July, they jumped when a friend moved out of state and offered to rent them her trailer in Sylmar’s Oakridge Mobile Home Park. “It was wonderful,” Bloss said. The homes were owned by good, ... California firefighters make gains on fires - Nation - Wire ...
Starting Monday morning, anxious residents of the Oakridge Mobile Home Park in Sylmar, where 484 homes were destroyed by fire early Saturday, will be allowed to return to inspect their property. Firefighters were able to save about 120 ... Residents return to devastated LA mobile home park - KFTY TV50
Anxious residents of the Oakridge Mobile Home Park in Sylmar are being allowed to inspect their property for the first time since a wildfire destroyed 484 homes in the area. Real Estate Blog - Mobile Home loans in Florida
A day doesn't go by that we don't get a call for financing ideas on single wide mobile homes. There are so many in Florida, because people retire here on fixed incomes and single wides are a super value. But, if you can't pay cash for ... Four Benefits on Owning a Mobile Home | Park Model & Manufactured ...
Mobile homes can be moved, with the assistance of professional trailer moving companies. Thus, if you buy a mobile home you can choose to move it anywhere you’d like. If you have a job that requires you to move often, you can easily ... Daily-Jeff.com - Mobile home park is ground zero of California ...
Firefighters douse a hot spot in the ruins of a home, one of hundreds destroyed in the Oak Ridge Mobile Home Park, in the northern San Fernando Valley area of Sylmar in Los Angeles Saturday, Nov. 15, 2008. ... WowWee Rovio Home Exploration and Mobile Webcam - $349.99 Shipped ...
WowWee Rovio Home Exploration and Mobile Webcam - $349.99 Shipped - Buy.com · Transformers Electronic Tabletop Pinball Machine - $15.97 w/ Free Pickup - Walmart.com · Razor E150 Electric Scooter (Red or Blue) - $99.67 with 97 Cent ... Sayre Fire -- Sylmar California: Oak Ridge Mobile Home Park 90 ...
Sayre Fire started in Sylmar California. It started last night about 10:30. (Sayre pronounced SAY-ER) At 6:00 a.m. official report says 10 homes lost, but TV views showed at least 24 mobile homes burning in addition to those reported 10 ...
|
|
|
