2006-07-04 14:33:32 · 11 answers · asked by Ron DMC 2 in Business & Finance ➔ Renting & Real Estate
A trailer is not real estate. Trailers, or mobile homes, are personal property. The only way I would think of a trailer as an investment is as a rental unit in a trailer park, in which case it would be income-producing property. The value then would be largely a matter of income vs expenses, and the higher the rent the higher the value of the entire trailer park.
AS a personal living unit I would not tend to think of it as an investment at all, but rather as a depreciating asset.
2006-07-04 14:40:02 · answer #1 · answered by Kokopelli 7 · 1⤊ 1⤋
Mobile homes are not investments like a home is. While a home appreciates in value, a mobile home always and only depreciates. This means not only that if you pay $30,000 for a mobile home and sell it ten years later and only get $8,000 or so from it, but the mobile home will always be worth less than the final payment on the mortgage. In other words, you will always owe more than the mobile home is worth. And it is worse if a mortgage company gets a hold of you and uses the rule of 78. A mobile home can be a financial nightmare. However, one can pick up a used one at the already depreciated value and fix it up for a song and a dance and live pretty cheaply. For your info:
A mobile home can be personal property but if it is part of a land/mobile home package then when registering you have a choice to declare it personal property or real property, depending on the State in which you live.
2006-07-04 14:48:22 · answer #2 · answered by pshdsa 5 · 0⤊ 0⤋
First don't call it a trailer, if you invest it would be in MOBILE HOMES.
Most of the answers were NO and for them that would be the correct answer, however if you do it right you can make a great deal of money with them.
There are a number of Real Estate Investors that have done it and are willing to teach you how you can do it also, of course for a fee.
If you are serious about the field you can email me if you want to learn more. (No charge for my info)
nomoneydowns@yahoo.com
2006-07-04 15:53:16 · answer #3 · answered by geotom 3 · 0⤊ 0⤋
It depends on what you want to do with a trailer and how you buy one.
Buying a new mobile home is a losing battle, for any reason. They will depreciate like a car, sometimes worse.
Buying used or forelcosed mobile homes can be profitable if you have some place to set it up and rent it out. If you know where to look, you can find very good deals on used or foreclosed mobile homes.
If your area does not have a lot of mobile homes, then it probably won't be a good idea to purchase one for renting. People who are used to living in or around mobile homes won't have a hangup about them. Those who haven't lived in them are generally reluctant to pay rent to live in one unless it's their last option.
Do your research for your area and see what's available.
2006-07-04 14:49:19 · answer #4 · answered by MudBug 1 · 0⤊ 0⤋
No, they depreciate just like cars...maybe that's why you have to register them at the DMV. Also, mortgage companies won't even finance a trailer older than 25 years. Stick to Stick built...
2006-07-04 14:37:19 · answer #5 · answered by rythempig 3 · 0⤊ 0⤋
No, trailers, cars ,electronics, etc. depreciate.. stick built homes , stocks, gold usually appreciate.. Buy a home ....not a trailer.
2006-07-04 14:37:20 · answer #6 · answered by DrK 4 · 0⤊ 0⤋
if you mean a house trailer, no they go down in value. Hard to get insurance on.
2006-07-04 14:36:14 · answer #7 · answered by Backwoods Barbie 7 · 0⤊ 0⤋
no trailer goes down in value while a house goes up
2006-07-04 14:38:16 · answer #8 · answered by white_arckon 2 · 0⤊ 0⤋
figure out if it's an asset or a liability. Assets are better, some liabilities are necessary
2006-07-04 14:37:44 · answer #9 · answered by Steph 5 · 0⤊ 0⤋
No. They have very poor depreciation value.
2006-07-04 14:40:26 · answer #10 · answered by roughneckgod 1 · 0⤊ 0⤋