I am ready to plunge into the real estate market, and was wondering what the pros and cons of buying a manufactured home rather than a condo or townhome would be. Here in CA, a typical 1300 sq ft three bed/two bath mobile home in my area goes for about $150k - roughly half the price of a $300k 600 sq ft one bed/one bath condo. I realize that with mobile homes, one has to pay rent on the space- but condos and townhomes pay similarly priced HOA dues every month. I am a single guy in my early 40s. Any advice would be greatly appreciated- thanks!
2007-06-28 18:37:37 · 9 answers · asked by Johnny Ma 4 in Business & Finance ➔ Renting & Real Estate
From an investment perspective, I would stay away from the mobile home. They tend to be valued more like automobiles than real estate, particularly if you are talking about the ones that are placed in the mobile home park. A step up would be a manufactured home on its own lot (not in the park), but this will still be valued less than a condo or townhome.
That means that when it's time to move or "trade up" to your next place, you may have a tough time getting out of the mobile home, whereas the condo/townhome would be much easier to sell.
2007-06-28 18:58:02 · answer #1 · answered by daniel_macioce 2 · 0⤊ 0⤋
I am a lender in CA and understand what you mean about getting more for your money. However, resale value on the manufactured homes are less desirable then stick built homes. Some mobile home parks will not allow you to rent out the unit without their permission. Also, if it is in a park, you can count on a higher interest rate as you do not own the land the home is on so it works more like an auto loan. Instead of property taxes you'll pay DMV tags. But if it is on land, it is still hard to refinance or sell with 100% financing.
Definitely check out condo's and townhouses but watch for the homeowner fees. Also, if you haven't owned a primary residence in the past 3 years, the state of california has a first time homebuyer program that has below market rates and helps you with the down payment and in some cases the closing costs. With a lower rate you may be able to afford more house. Feel free to email if you'd like to talk more about your options.
2007-06-29 03:10:52 · answer #2 · answered by lenderjayne 3 · 1⤊ 0⤋
When you purchase a mobile home, you are not buying real estate. Real estate is land.
When you buy real estate, you gain equity over time. Not so in the case of mobile homes, which depreciate like a car.
Rent at mobile home parks can and usually does, go up every year.
Mobile homes have a very difficult time reselling because the market is usually flooded. Competition is rough and sellers have to take much less than they had anticipated.
Yes, you may get more bang for your buck in square footage in a mobile home, but the materials used to make them are far less sturdy.
If you still want the deal with mobile homes, purchase a used one and make an offer that is lower than what they are asking.
In this market you should also make a low offer on real estate too, if you go that route. It is a buyer's market and you can offer considerably less right now.
Either way, figure your budget carefully before taking out a loan, and never strap yourself financially. If your budget is tight, it is better to rent.
2007-06-29 02:00:07 · answer #3 · answered by Anonymous · 1⤊ 0⤋
If you can swing it go for the condo or townhouse. On the mobile home they dont appreciate and they are hard to sell when you want to get rid of. I have owned a condo and now own a house in CA and two more out of state. Dont buy the mobile home you Will regret it.
2007-06-29 01:42:37 · answer #4 · answered by mom of twins 6 · 0⤊ 0⤋
Mobile homes will always depreciate. A home (in your case a condo or townhome) will almost always appreciate. A lot of insurance companies won't insure a mobile home after so long (15 yrs or something like that.)
2007-06-29 01:41:58 · answer #5 · answered by Lynda M ♥ 3 · 0⤊ 0⤋
A mobile home's value will NEVER go up - you will lose money on it. OTOH, the value of a townhome/condo will likely rise which will help you build equity. Stay away from the mobile home.
2007-06-29 02:19:47 · answer #6 · answered by nicholebeth 3 · 1⤊ 0⤋
Mobile homes depreciate, unlike traditional homes, townhomes and condos which generally appreciate over time. For this reason they should be your LAST resort.
2007-06-29 10:26:51 · answer #7 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Pros:
You get double the space for half the cost.
You can rent it later, rather than sell, to make up for depreciation costs.
Cons:
Depreciation-if your in to make money off it in the long run, example-get married and need the $ to buy a new home together, you would not be able to recoup any equity.
Its a matter of your preference.
2007-06-29 01:59:19 · answer #8 · answered by DollyLama 5 · 1⤊ 0⤋
Mobile homes are ****, stay away from them.
2007-06-29 01:41:13 · answer #9 · answered by nalv420 2 · 3⤊ 0⤋