| You can buy mobile homes for much less than | | | | equity. Your real estate agent won't tell you |
| stick-built houses in most areas of the | | | | this, and don't expect him to agree even |
| country. Despite the common predjudice | | | | after you explain it. Math skills aren't part |
| against them, mobile homes are the cheap | | | | of the licensing requirements (at least they |
| housing choice of millions. While the | | | | weren't when I sold real estate). |
| advantages are not always obvious, they are | | | | |
| real. | | | | Other Advantages |
| | | | |
| One of the advantages is fast equity buiding. | | | | You can do what you like with the home when |
| You see, the myth about mobile homes | | | | you own the land. I rented rooms in my home, |
| depreciating is only half true. In parks they | | | | and took in more money than it originally |
| generally go down in value over time. Buy | | | | cost. |
| mobile homes on land, though, and they'll | | | | |
| usually go up in value. | | | | Mobiles are cheap to maintain. I once had a |
| | | | furnace die in a mobile home I owned as a |
| Buy Mobile Homes With Real Estate | | | | rental.This is about the most expensive |
| | | | repair you'll have in a mobile. I replaced it |
| My first home was a mobile, and it doubled in | | | | for $1,200, which is much less than a furnace |
| value in the twelve years I lived in it. The | | | | for a larger home. For $200 you can tar the |
| home deteriorated a little (don't all | | | | roof, or $30 if you do it yourself, instead |
| houses?), but the value of the land rose. | | | | of $5,000 to re-shingle a traditional roof. |
| With a lower price than a "stick-built house, | | | | Windows, plumbing, and doors are all cheaper. |
| the mortgage payments were lower. Because of | | | | |
| the shortened amortization (seven years), and | | | | Property taxes, because they're based on |
| lower loan amount, I built equity fast. | | | | value, cost less. Insurance is less because |
| | | | you're insuring less value. Just be sure you |
| Buy Mobile Homes To Build Equity Fast | | | | can get insurance before you buy. Some old |
| | | | mobiles may be uninsurable in some areas. |
| A house with a $100,000, 6%, 30-year mortgage | | | | |
| loan gives you a payment of $599.60. $500 of | | | | I wouldn't buy a mobile home if house prices |
| the first payment will go to interest, $99.60 | | | | for houses are just as low in the area. We |
| to principal. You built equity of $99.60 (I'm | | | | bought a house near Butte, Montana for |
| ignoring appreciation for the moment). | | | | $17,500 - less than mobile homes for sale |
| | | | there (See a photo on our site). |
| A mobile home on land, with a $30,000, 8%, | | | | |
| 10-year mortgage gives you a payment of | | | | Will your own needs and predjudices let you |
| $363.99. The higher interest rate is normal | | | | be comfortable in a mobile home? It's |
| with mobiles. The shorter term is normal too, | | | | something to consider. They may be in areas |
| so you'll own the home free-and-clear in 10 | | | | you don't want to live (true of houses as |
| years instead of 30. The first month, $200 | | | | well). These are personal things you have to |
| will go to interest, meaning $163.99 goes to | | | | consider. |
| principal. You built more equity in this | | | | |
| scenario. | | | | Why buy mobile homes? The advantages are |
| | | | clear for young people starting out, who may |
| A mobile home on land might appreciate more | | | | have no other options. It may also be your |
| slowly than a "regular" house, but faster | | | | better option, when you consider the lower |
| loan pay-down probably may cover this factor. | | | | price, the simpler, cheaper maintainance, |
| Now, if you also chose to bank the difference | | | | lower monthly payments, low property taxes, |
| in payments ($235.61 per month), you'd | | | | lower insurance costs, and faster equity |
| definitely be better off financially with the | | | | build-up. Why not buy mobile homes? |
| mobile home versus the more expensive home | | | | |
| (Except during times of fast appreciation). | | | | Steve Gillman wrote the book: Cheap Homes - |
| | | | How To Save Thousands Buying Your Next House. |
| You can pay less per month and build more | | | | |