| |
| |
|
Nationalrealtyresource.com
|
| Home | Find a topic | Links | Guest Book |
| Welcome |
|
|
|
Why Mobile Homes?
There are mobile homes for sale, for much less than stick-built houses, in most areas of the country. Despite persistent predjudice against them, and sometimes the people living in them, mobile homes are the cheap housing choice of millions. The advantages are not always obvious, but they are real. First of all, let's acknowledge the big "truth" about mobile homes and appreciation or depreciation. It's true in most areas that mobile homes in parks go down in value over time. That's why I don't recommend buying in a park, unless you absolutely can't buy real estate, and you have done the math to see if you are better off than renting a nice apartment. To "do the math" consider lot rent, payment, and the remaining value of the mobile when you put it up for sale, minus what you will still owe, when you are likely to move. These are guesses, but still better than nothing if you are as objective as you can be. Mobile Homes For Sale With Real Estate When looking at mobile homes for sale on land, however, you are looking at an entirely different investment. My mobile home in Michigan doubled in value in the twelve years I lived in it. That's because even as the home deteriorated a little over time (don't all houses?), the value of the land continued to rise. You also can do what you like with the home when you own the land. For example, I took in more money from my home than it originally cost, by renting out a room or two over the years. As mentioned, mobile homes usually sell for less than other houses, and this means lower payments. Also, because of the shortened amortization and lower loan amount, you will often build equity faster in a mobile home than in a more expensive house. A quick example follows, for the skeptical among you. Equity Building With Mobile Homes If you buy a house with a $100,000 mortgage loan amortised over 30 years at 6% interest, you'll have a payment of $599.60. Of the first payment, $500 will go towards interest, $99.60 towards principal. In other words, you only built equity of $99.60 (I'm ignoring appreciation, but only for the moment). Second scenario: Find a nice mobile home for sale, and borrow only $30,000, at 8% interest, amortised over 10 years. Note that higher interest is always the case with "factory built home mortgages." The shorter term is normal too, but least you'll own your home free-and-clear in 10 years instead of 30. Despite higher interest and a shorter term, the payment will be only $363.99, and the first month only $200 will go towards interest. That means the other $163.99 goes towards principal. You bought more house (built more equity) in this scenario. It's true that a mobile home on land might appreciate more slowly than a "regular" house, but the faster loan pay-down probably more than covers this factor. If you also chose to bank the difference in payments ($235.61 per month), you'd definitely be better off financially with the mobile home versus the more expensive home. Pay less per month and build more equity! Don't expect your real estate agent to tell you this. Don't expect him to even agree with me after you explain it. I sold real estate years ago, and math skills were not a big part of the licensing requirements. Mobile Homes For Sale; Other Advantages Mobile homes are cheaper to maintain. Years ago I had a mobile home as a rental, and the furnace in it died. This is the most expensive repair you'll have in a mobile. I had to replace it for $1,200, but that was still less than a furnace for a larger home. Consider that for $200 you can tar the roof of your home, or $30 if you do it yourself, instead of $5,000 to re-shingle a traditional roof. The windows, plumbing, doors - all cheaper. Property taxes will cost less, because they're based on the value of the property, and mobile homes for sale on land have lower value than stick-built houses. Insurance may cost less too, again because you are insuring less value. The only precaution to remember here is to be sure you can get insurance. Very old mobiles may be uninsurable in some areas. Should You Buy A Mobile Home? Don't buy a mobile home if prices for houses in the area are just as low. Believe it or not, this is the case in some areas. We bought a house near Butte, Montana for $17,500 - less than mobile homes for sale there (See a photo on our site www.HousesUnderFiftyThousand.com). Houses do generally hold up better. Then there are the issues of whether your own needs and predjudices will let you be comfortable in a mobile home. They are sometimes for sale in areas you don't want to live in (Certainly true of houses as well). These are personal things you have to consider. The advantages are clear for many young people starting out. It may be their only option, but it may be your better option. Besides a lower initial price, you get simpler, cheaper maintainance, lower monthly payments, less property tax, less for insurance, and faster equity build-up. So don't automatically pass on those mobile homes for sale when you're out home-hunting. Steve Gillman and his wife Ana have converted their mobile home in Michigan to a rental and moved to Tucson, Arizona. He and his wife also lived for a while in Montana, where they bought a beautiful house (not a mobile) for $17,500. That experience lead to the creation of their website, http://www.HousesUnderFiftyThousand.com
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
Investing in Real Estate for Your Retirement (and Now!) You've probably heard a lot of opposing information about Investing in Real Estate, which is completely annoying! The straight-forward fact about Real Estate is that it is probably the best and safest investment you'll ever make, especially if you live in it, and that you are far more likely to make money in this market than with any other type of investing. The chances are very slim that you'll wake up one morning and the housing market will have dropped by 40%. Coming to Las Vegas - the Las Vegas Real Estate Boom Nobody seems to be 'Leaving Las Vegas' anymore - in fact just the opposite is true. Just as in the time of the rush Las Vegas real estate has been drawing the attention of investors and new citizens alike. Pricing your House to Sell Most Sellers set their initial asking price at an amount somewhat higher than they are actually willing to accept, fully expecting a buyer to open the bidding with a lesser amount.While price is the most frequently negotiated item in any home sale, you may be able to creatively provide financial value to your buyer - without lowering the price alone. Real Estate Investing Produces Extraordinary Profits Imagine making $5000 a year from real estate investing without recognizing you are real estate investing!Real estate values are so dynamic. The marketplace is always fluid and changing. Secrets of Making Money from Real Estate - Part 5 Where to from here:One property is great, but It wont make you very wealthy. Below is the expansionary model of what I think a good real estate portfolio should look like. Attention To Details Helps Homeowners Sell Fast In A Buyers Market Your boss has just given you the career opportunity of a lifetime, but the job is in another state.Soon you discover that moving your family to another city may be one of life's hardest tasks. Prepare Your House for a Successful Sale Whether you list with an agent or sell on your own, you can ensure a quick sale by proactively preparing your house to be a highly marketable and attractive commodity.Paradigm ShiftDon't wait for the sold sign to get started with packing. Real Estate Investing in Rentals - the $10 Million Real Estate Investing Mistake Renting to tenants is no longer "where the money is" for real estate investing. I became a multi-millionaire landlord in the 1980s by buying $10 million in rental houses. Why I Love Country Living As somone who has lived in both places, I can tell you that country living certainly beats the hustle and bustle of city life! Living in a rural area has advantages that simply can't be bought at any price.In the city I was bombarded with the sounds of horns blowing and sirens blaring. How to Afford Your Dream Home Is it your dream to one day own a holiday home in the sun; a beautiful house where you can escape, relax and be free of the worries that seem to go hand in hand with every day life?Well, you're not alone!A recent survey by a well known mortgage lender in the UK revealed that up to one in three Britons not only dream about owning a home in the sun but fully intend to make that dream a reality some day. And in the US the number of Americans planning to one day buy that ideal second home haven is now up to three in ten people. Best Places to Retire Places to Retire: Popular Doesn't Always Mean "Best"Las Vegas, Nevada; Phoenix and Yuma, Arizona; Las Cruces, New Mexico; and Ocala, Florida-just a few names that rank among America's most popular retirement destinations. Unfortunately, their popularity doesn't necessarily mean that they are especially appropriate choices for astute consumers. Selling Houses Fast: Basics of Design & Color Psychology Fixing up houses to ready them for sale includes a design plan for needed changes. Save money on transformation costs by choosing design details right the first time. Will The Real Home Buying Guide... Please Stand Up? Use Google right now and do a search on, "Home Buying Guide". Take a few minutes to click some of the links to see what's out there and then come right back. Real Estate Website Marketing - 5 Steps to Crushing Your Competition and Doubling Your Business Getting your real estate website more traffic is easy if you know how Internet marketing works, not to mention search engine optimization. Your goal is to get as much traffic as possible to your website, but not just any traffic, targeted traffic. Five Ps of Selling Houses 1. Planning:Know Your Target BuyersThink about your neighborhood and the buyers purchasing homes near your property. Boston Real Estate - Choosing the Right Boston Real Estate Agent As a successful Boston real estate agent, it always puzzled me how and why some people choose particular Boston real estate agents to sell their homes. For most of us, a real estate purchase is the single largest investment we will ever make in our lives. Mortgage Broker Training: How to Secure Loyalty From Realtors So you've just returned to your office after delivering an Oscar worthy presentation to a real estate agent. They're impressed and ready to do business with you. Jacksonville Real Estate Listings With over 30,000 residents, Jacksonville in central Arkansas is a thriving city that offers many opportunities for both longtime residents and newcomers alike. About 20 miles from the state capital of Little Rock, the city is expanding in many ways. Renting Versus Buying A Home Renters are often in a quandary as to whether it makes sense to continue renting or buy a home. Buying a home makes more sense, particularly when taking a long-term view. Property Investing - Am I Buying for Profit or Prestige? All of us have emotional preconceptions and assumptions. They are reinforced and fine tuned by our experiences of life, be they traumatic, disciplined or consistent.
|
| |
| |
|
Home | Guest Book |Site Map | Recommended Resources | Search Powered By: TJTMEDIA |
| © 2006 |
