| You can buy mobile homes for much less than | | | | and don't expect him to agree even after you |
| stick-built houses in most areas of the country. | | | | explain it. Math skills aren't part of the licensing |
| Despite the common predjudice against them, | | | | requirements (at least they weren't when I sold |
| mobile homes are the cheap housing choice of | | | | real estate). |
| millions. While the advantages are not always | | | | Other Advantages |
| obvious, they are real. | | | | You can do what you like with the home when |
| One of the advantages is fast equity buiding. You | | | | you own the land. I rented rooms in my home, |
| see, the myth about mobile homes depreciating is | | | | and took in more money than it originally cost. |
| only half true. In parks they generally go down in | | | | Mobiles are cheap to maintain. I once had a |
| value over time. Buy mobile homes on land, | | | | furnace die in a mobile home I owned as a |
| though, and they'll usually go up in value. | | | | rental.This is about the most expensive repair |
| Buy Mobile Homes With Real Estate | | | | you'll have in a mobile. I replaced it for $1,200, |
| My first home was a mobile, and it doubled in | | | | which is much less than a furnace for a larger |
| value in the twelve years I lived in it. The home | | | | home. For $200 you can tar the roof, or $30 if |
| deteriorated a little (don't all houses?), but the | | | | you do it yourself, instead of $5,000 to re-shingle |
| value of the land rose. With a lower price than a | | | | a traditional roof. Windows, plumbing, and doors |
| "stick-built house, the mortgage payments were | | | | are all cheaper. |
| lower. Because of the shortened amortization | | | | Property taxes, because they're based on value, |
| (seven years), and lower loan amount, I built | | | | cost less. Insurance is less because you're insuring |
| equity fast. | | | | less value. Just be sure you can get insurance |
| Buy Mobile Homes To Build Equity Fast | | | | before you buy. Some old mobiles may be |
| A house with a $100,000, 6%, 30-year mortgage | | | | uninsurable in some areas. |
| loan gives you a payment of $599.60. $500 of | | | | I wouldn't buy a mobile home if house prices for |
| the first payment will go to interest, $99.60 to | | | | houses are just as low in the area. We bought a |
| principal. You built equity of $99.60 (I'm ignoring | | | | house near Butte, Montana for $17,500 - less than |
| appreciation for the moment). | | | | mobile homes for sale there (See a photo on our |
| A mobile home on land, with a $30,000, 8%, | | | | site). |
| 10-year mortgage gives you a payment of | | | | Will your own needs and predjudices let you be |
| $363.99. The higher interest rate is normal with | | | | comfortable in a mobile home? It's something to |
| mobiles. The shorter term is normal too, so you'll | | | | consider. They may be in areas you don't want to |
| own the home free-and-clear in 10 years instead | | | | live (true of houses as well). These are personal |
| of 30. The first month, $200 will go to interest, | | | | things you have to consider. |
| meaning $163.99 goes to principal. You built more | | | | Why buy mobile homes? The advantages are |
| equity in this scenario. | | | | 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 better |
| slowly than a "regular" house, but faster loan | | | | option, when you consider the lower price, the |
| pay-down probably may cover this factor. Now, if | | | | simpler, cheaper maintainance, lower monthly |
| you also chose to bank the difference in | | | | payments, low property taxes, lower insurance |
| payments ($235.61 per month), you'd definitely be | | | | costs, and faster equity build-up. Why not buy |
| better off financially with the mobile home versus | | | | mobile homes? |
| the more expensive home (Except during times | | | | Steve Gillman wrote the book: Cheap Homes - |
| of fast appreciation). | | | | How To Save Thousands Buying Your Next |
| You can pay less per month and build more | | | | House. |
| equity. Your real estate agent won't tell you this, | | | | |