Is is true that buying a Mobile Home would be a waste of money?

Question

Does the value go down over time?

Answer 1

Paying rent is a waste of money. Buying a house is a good investment. Buying a mobile home is middle of the road. Yes, the value of a mobile home goes down over time just like the value of a car. So don't buy new. Buy one that's in good condition, like 4 to 6 years old (preferably a re-po) and save a bundle! Stick it on a piece of land (not a rental lot) and live in it until you are in a position to purchase a house, or build next to it on your land. When you're finished with it, if it's still in decent shape, sell it for what you can get or rent it out. Either way, your payments will be less than rent would have been, at the end, you do have something to show for it, and your interest is tax deductible just like on a house (if you will benefit from itemizing.) So no, in this way it is not a waste of money. (Unless you were the one to pay the huge down payment and then get it re-po'ed, giving the next one to come along a sweet deal!)

Answer 2

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Answer 3

I once provided mortgages for mobile homes and manufactured homes and I can honestly tell you it is a total waste of money.

The property will always decrease in value no matter how you keep up the appearance. To prove my point that they do not hold the value is the fact that fewer and fewer banks and lending outlets will even provide funding for mobile homes.

While your current situation may seem like it would be a great thing to do - I really would warn against it!

Take another six months to a year - save a little money for a larger down payment for a real house or look into finding a down payment assistance program to help with your home purchase now or later.

No yourself a favor and walk away from a mobile home!!!!!

Answer 4

Homes needing rehabilitation aside, the way the home was built has nothing to do with its value, unless there is no market for that type of home in your area. It’s like saying that homes built on lakes will always lose value. Before there was a market for lakefront property land owners could barely give the property away (and in a lot of instances did give it away). And if water levels start rising in lakes and these homes start falling in these will depreciate as well. In some areas custom built log cabins will sell for 10 times as much in areas where there is no demand for log cabins. In the 1950's Manufactured homes were all the rave and these units began increasing in value pretty quickly. Right now there is a stigma that goes with manufactured homes, since they are built in a factory there are factory defects which cause the home to lose longevity. Whether this is true or not probably depends on the company that builds it. The biggest factor that attributes to the value of manufactured homes is how much OTHER Manufactured homes are selling for in the area. A real estate agent can usually assist with this pretty easily. The average person should not look at a home strictly as an appreciating investment as much as a great tax break, lower monthly payment than a rental, and the ability to resell after the mortgage has been paid down. If the home fits your needs and is within your budget keep it as an option.

Answer 5

hum well id have to dissagree with everyone an the reason being is if you get a deal on anything then you cant go wrong but as far as mobile homes what make its difficult is that there is only one insurance carrier in the state of fl that provides insurance for them ,its hard because they dont have a deed like a regular home they have a title instead that runs threw the DMV but there has been alot of talk latley about changing that an issueing them deeds ,also you cant finace a mobile that is over 25 yrs old ,but there not realy mobile homes any more theres no difference between a prefab home an one just the names,but yes they do depriciate faster so you will have to get a great deal to make it worth it , i purchased one in january it was a 3/2 built in 95 on 1.25 acres for 40k an went in an gutted it an redid it an fliped it april for 85kso i guess its all in what u plan to do with it but remember theres alot of money to be made if your smart about it

Answer 6

Go modular or onsite prefab. Ive been thinking about adding a 30k modular home onto my existing house. I think its not going to have more than a 10 or 15 year livabilty period though I know there are still trailors out there from the 50's. As far as the value or worth. You would want to sell within 3 to 4 years to clear half of your investment. This is just a base estament and not a exact because the value of a home lies in what you do with it

Answer 7

Being able to purchase any property is always a plus. I have seen Mobile homes that are just drop down dead gorgeous and in a community that only the rich and famous can live. So it really depends on where you are looking to buy.

Answer 8

It is worse than a car, you lose over 1/2 yor resale before you pay for it, and I am not dissing mobile homes I lived in one for 12 years and loved it, but it is not a financially wise move to buy a new one. I would say $4-5,000 or less would be reasonable for 1 in good shape. I paid $2,000 for my 3 bedroom and it was in good condition.

: )

Answer 9

generally that is true. however there are a couple of exceptions (as always)...and it's mainly because of location.
mobile homes r usually really cheap, but if u check out some real estate hot spots...like southern california or florida, they could be worth almost a million!
here's an old article describing that:
http://www.keynoter.com/articles/2005/08/17/business/biz01.txt
and i watched on tv about a million-dollar mobile homes park (i forgot where it was...not california/florida) that had many residents really renovating and making their home pretty up-scale...they too r worth close to a million.
also check out this comment.
http://forum.richdad.com/forums/tm.asp?m=291975&appid=&p=&mpage=1&key=&tmode=&smode=&s=

Answer 10

I'm in a mobile home right now in Florida looking down the barrel at hurricane Ernesto, wanna buy one real cheap?