To Rent or Not to rent?!?!?

Question

Me and my hubby to be are trying to decide what would be best,

to try and get a loan for a small one room trailer (we dont really have much credit built up at all!) (we're 19 and 21)

or

to just rent an apartment???

what do you think.. pros and cons?

Answer 1

If you get the trailer and you pay off the loan quickly, your credit rating will look fantastic. Banks just want to see if you will pay off a loan. If a bank balks at the trailer because of depreciation, then find a small cottage instead. The faster you show that you can pay off a loan on time, the better your credit will be.
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Answer 2

You are both quite young to start. I would consider renting an apartment for now and saving up for a down payment while building some credit. It allows you the freedom to move on to something better whenever you want for the most part. Besides... no lawn maintenance necessary:) I would steer away from the trailer... not that they are bad. It is as most people have said so far...there is not equity in a trailer. much like a car. Yes, in the end it may be cheaper than a house, but when the time comes you want a home, selling the trailer will yield very little. Best of luck!

Answer 3

A trailer is a bad investment. You tie up a loan and pay interest on something that loses value every month plus you pay rent on the lot you park it on. You are known as "trailer trash". Your creditworthiness doesn't improve as your residence appears to be temporary. If you rent a modest apartment, you spend the money every month with no asset BUT if you pay your rent on time every month, you get a good reference and that counts when you're starting out. Get an apartment for about $100.00 a month less than you can afford and put the $100 a month into a savings account. In Canada we have RHOSP's which allow you a tax credit like a retirement plan on these savings. Then, when it's time to put a down payment on a real house, you can get an interest-free loan on these savings if it is used for your first home, and you have 15 years to pay it back slowly to rebuild your pension savings. If you're smart and careful, by starting saving for a real home, you should be able to put a down payment in 3 years. You'll be just 22 and 24 and will be waaaaay ahead of your friends with great credit. Good luck!!

Answer 4

Being your ages...I would recommend renting an apartment at first or even renting a trailer. Do not buy anything just yet. You are still new in your marriage. You want to establish some credit too. At your age the interest rates on credit could be high. Also, not to be cruel...but if something unexpected happens in the marriage...you wont be overburdened with all those extra bills. I say rent for a few years before you decide to buy.

Answer 5

Go with the apartment until you can get a home that won't depreciate. Trailers depreciate very quickly. And, they're not very sturdy in bad weather. Apartments are usually safer and cleaner than trailer parks. Apartments also have onsite maintenance and groundskeepers.

Keep in mind that the monthly payment isn't the only expense that comes with owning a home. YOu're completely responsible for all the upkeep and maintenance. When the AC bombs and it's 105 degrees outside, you have to call someone and pay an arm and a leg to have the AC repaired. You have to mow your own lawn, pay all your own utilities, etc. You also have to set aside money each month for property taxes, unless you're renting the place to put your trailer.

Answer 6

Before you do either, go the www.freecreditreport.com and see what your credit looks like. If you haven't already run up a bunch of debt and you have decent jobs you may have better credit than you think. If you can scrap together a down payment you may be able to afford to buy a small house. This would be a far better investment than a trailer as it far more likely to appreciate in value.

When getting a home loan the most important thing is how much money you can put towards your down payment and how much money you make. You might be surprise how much they will lend you. That being said be careful to make sure that you can actually afford what you buy. They will loan you more than you can afford. I believe it's something like 60% of your GROSS INCOME. i.e. before taxes.

Answer 7

I'm all for owning as opposed to buying. Rent is a HUGE waste of money to me. It's like, here's $900 a month. I'm going to KISS it goodbye, b/c I never see it again. At least if you own and pay a $900 a month mortgage, if you have to sell you should see some profit (if you invest wisely) and a return on the money you are spending.

I don't know much about trailors.....so I can't say if you'll get a return. Why not buy a small apartment (similar to the one you will rent)?

Answer 8

At your age rent. Until you have established careers you do not want to be tied down to one area or home. Also, a good rental history will help you down the road with getting a home loan and a good interest rate. Better interest rates are given to those with a history of prompt payments. Also, you will quickly outgrow a one room trailer and it may be difficult to sell when you need to move. Honestly, in your situation I can not see any benefit to buying. Even if you build up a small amount of equity and could sell you might be passing up oportunities to make more money elsewhere. You might have to wait to take a higher paying job because you are stuck waiting for your home to sell.

Answer 9

i am a firm believer in owning if you can, but, in our part of the world it is becoming increasingly difficult to find places to put a trailer. more and more parks are being sold, torn out and turned into condos leaving manufactured home owners with no where to go and no idea what to do! therefore between the two choices you have given i would suggest renting is the better option.
however i do have a suggestion, i don't know where you live, but have you considered a housing co-operative? they are a non profit development where you have your own suite.
you pay a monthly housing charge and as long as you live in the unit you are considered a part owner of the entire complex. your housing charges are based on your income, and on the square footage of your suite, so you generally get a better break than renting, and your money goes directly into the cost of running your home.
whatever you choose, good luck and have a good life!

Answer 10

rent, and save your money for a regular home or condo. not a trailer, they do not hold their value.

save your money and wait, house prices may go down quite a bit in the next few years.

do everything you can to get the highest credit score you can. this means having steady jobs, a checking acct and a credit card that you never ever miss a payment on. and you never ever bounce a check.

go on the internet and read and read about having perfect credit. read the suzie orman books.

i said, read the suzie orman books. they are an excellent foundation to financial knowhow.

you are so fortunate that you have goals at this young age.

also, read a site called www. patrick.net about why it is not smart to buy a house now.

Answer 11

pros and Cons... the apartment you dont have to do any maintenance on anything!(love it) trailer you have to fix anything that goes wrong. trailer you have to get a loan which will help build your credit. apartment wont help build your creidt only hurt (if you dont pay your bill)

trailer are you ready for a very large responsiblity?
apartment not much responsibliity ?

what can you handle?