| There are mobile homes for sale, for much less than | | | | scenario.It's true that a mobile home on land might |
| stick-built houses, in most areas of the country. | | | | appreciate more slowly than a "regular" house, but |
| Despite persistent predjudice against them, and | | | | the faster loan pay-down probably more than covers |
| sometimes the people living in them, mobile homes | | | | this factor. If you also chose to bank the difference |
| are the cheap housing choice of millions. The | | | | in payments ($235.61 per month), you'd definitely be |
| advantages are not always obvious, but they are | | | | better off financially with the mobile home versus the |
| real.First of all, let's acknowledge the big "truth" about | | | | more expensive home.Pay less per month and build |
| mobile homes and appreciation or depreciation. It's | | | | more equity! Don't expect your real estate agent to |
| true in most areas that mobile homes in parks go | | | | tell you this. Don't expect him to even agree with me |
| down in value over time. That's why I don't | | | | after you explain it. I sold real estate years ago, and |
| recommend buying in a park, unless you absolutely | | | | math skills were not a big part of the licensing |
| can't buy real estate, and you have done the math | | | | requirements.Mobile Homes For Sale; Other |
| to see if you are better off than renting a nice | | | | AdvantagesMobile homes are cheaper to maintain. |
| apartment.To "do the math" consider lot rent, | | | | Years ago I had a mobile home as a rental, and the |
| payment, and the remaining value of the mobile | | | | furnace in it died. This is the most expensive repair |
| when you put it up for sale, minus what you will still | | | | you'll have in a mobile. I had to replace it for $1,200, |
| owe, when you are likely to move. These are | | | | but that was still less than a furnace for a larger |
| guesses, but still better than nothing if you are as | | | | home. Consider that for $200 you can tar the roof |
| objective as you can be.Mobile Homes For Sale With | | | | of your home, or $30 if you do it yourself, instead of |
| Real EstateWhen looking at mobile homes for sale on | | | | $5,000 to re-shingle a traditional roof. The windows, |
| land, however, you are looking at an entirely different | | | | plumbing, doors - all cheaper.Property taxes will cost |
| investment. My mobile home in Michigan doubled in | | | | less, because they're based on the value of the |
| value in the twelve years I lived in it. That's because | | | | property, and mobile homes for sale on land have |
| even as the home deteriorated a little over time | | | | lower value than stick-built houses. Insurance may |
| (don't all houses?), the value of the land continued to | | | | cost less too, again because you are insuring less |
| rise. You also can do what you like with the home | | | | value. The only precaution to remember here is to be |
| when you own the land. For example, I took in more | | | | sure you can get insurance. Very old mobiles may be |
| money from my home than it originally cost, by | | | | uninsurable in some areas.Should You Buy A Mobile |
| renting out a room or two over the years.As | | | | Home?Don't buy a mobile home if prices for houses |
| mentioned, mobile homes usually sell for less than | | | | in the area are just as low. Believe it or not, this is |
| other houses, and this means lower payments. Also, | | | | the case in some areas. We bought a house near |
| because of the shortened amortization and lower | | | | Butte, Montana for $17,500 - less than mobile homes |
| loan amount, you will often build equity faster in a | | | | for sale there (See a photo on our site do generally |
| mobile home than in a more expensive house. A | | | | hold up better. Then there are the issues of whether |
| quick example follows, for the skeptical among | | | | your own needs and predjudices will let you be |
| you.Equity Building With Mobile HomesIf you buy a | | | | comfortable in a mobile home. They are sometimes |
| house with a $100,000 mortgage loan amortised over | | | | for sale in areas you don't want to live in (Certainly |
| 30 years at 6% interest, you'll have a payment of | | | | true of houses as well). These are personal things |
| $599.60. Of the first payment, $500 will go towards | | | | you have to consider.The advantages are clear for |
| interest, $99.60 towards principal. In other words, you | | | | many young people starting out. It may be their only |
| only built equity of $99.60 (I'm ignoring appreciation, | | | | option, but it may be your better option. Besides a |
| but only for the moment).Second scenario: Find a nice | | | | lower initial price, you get simpler, cheaper |
| mobile home for sale, and borrow only $30,000, at | | | | maintainance, lower monthly payments, less property |
| 8% interest, amortised over 10 years. Note that | | | | tax, less for insurance, and faster equity build-up. So |
| higher interest is always the case with "factory built | | | | don't automatically pass on those mobile homes for |
| home mortgages." The shorter term is normal too, | | | | sale when you're out home-hunting.Steve Gillman and |
| but least you'll own your home free-and-clear in 10 | | | | his wife Ana have converted their mobile home in |
| years instead of 30. Despite higher interest and a | | | | Michigan to a rental and moved to Tucson, Arizona. |
| shorter term, the payment will be only $363.99, and | | | | He and his wife also lived for a while in Montana, |
| the first month only $200 will go towards interest. | | | | where they bought a beautiful house (not a mobile) |
| That means the other $163.99 goes towards principal. | | | | for $17,500. |
| You bought more house (built more equity) in this | | | | |