Buy house,mobile home or condo: which is more frugal? (best, value)
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In our geographic area we could buy any of the above.
I am always concerned about living frugally because my
Husbands job has not been the most stable. He's always Been able to find
Something but he's a teacher and he's been let
Go many times. I am a physical therapist and am concerned
about the recent medicare cuts. Our children are grown and its just us.
It's actually cheaper to buy any of the options then rent in
This area (outside of charleston sc). We could buy
A small house in decent neighborhood for
110-120k, town homes go from 80k up and mobile homes
Are variable newer ones 40k and land 10-20k.
We are in our 40s and not in the best financial shape,
We have a lot of school loan debt which takes a
Big bite out of our budget. We currently pay 1000 month in rent. I want to go as frugal
As possible but I don't want to hurt us in the process.
For example I know town homes are cheaper, but I have a
Patient who is paying exorbitant HoA fees that she
Can barely afford. (HoA fees for our neighborhood
Of house is 200 yr, she's paying 700 yr for townhome).
My husband would like to have land as we grow our own
Vegetables, but I want to make a smart financial
Decision. Any advice is greatly appreciated!
We have stability now but the reason why I want to be frugal
Is I am worried about stability in the future. Even my job
In healthcare is under attack due to Medicare cuts, but I still
Get multiple job offers. In this economy I really feel no one has
Stability. That is why we want to be frugal
We have stability now but...
Is I am worried about stability in the future.
In this economy I really feel no one has Stability.
That is why we want to be (responsible)
Frugal w/r/t homes (or cars) is about the cost ratio vs income/assets.
Don't buy a Mercedes if your a Chevy family... and then buy a used Chevy.
Responsible is about honest assessment of your ability to manage that choice.
Both the purchase amount, the loan terms, the upkeep... and the fix up work of a "bargain".
Quote:
This area (outside of charleston sc).
We could buy a small house in decent neighborhood for 110-120k...
We currently pay 1000 month in rent.
you could probably get a nice sized mobile home on a good sized private lot for maybe 40 -50 k . even on a private lot you could grow veggies and etc . I know I m really leaning this way too . my husband makes a good income but we are really watching our pennies and we want our next home purchase to be our last because frankly im tired of moving .
Your question seems based on the type of dwelling, yet, with the exception of mobile homes in general, the market for townhomes, SF homes and condos will vary by market. (Mobile homes will typically cost you less to get-in, but, are invariably in lower income areas and always depreciate, rather than appreciate in value).
HOA fees for Condos or townhomes are neither good/bad and by themselves. They should be evaluated in terms of what they cover, as compared to similar costs in SF homes (don't forget about reserves for things like roofs, painting, etc). You can probably save some money by doing your own landscaping in a SF home, but, will likely not have amenities such as a pool, exercise area, clubhouse, etc..
If you consider the neighborhood to be 'decent' for comparable $100K-range SF homes, condos or townhouses, the difference will likely depend more on your preferences, than investment quality (again, depending on your local market).
If, however, your husband's career is unstable, you may want to look closer at renting (particularly, since property value appreciation has not been great over the past few years). You say that you can buy as cheaply as rent, but, are you really considering all the costs of 'owning.' Expenses such as property taxes, insurance, maintenance/upkeep, landscaping, repairs, RE fees in/out, closing costs, etc. are often overlooked by those making this comparison.
A friend of mine bought 25 acres with her husband, and they bought a junker moble home for under $3k.
They lived in it for about 5 years while they saved their money and they built a beautiful 3 story house for cash....
They got paid $500 by a guy who hauled the trailer away for scrap, and they have their house and land free and clear.... Those rent payments they paid themselves went a long way towards paying for the house.
What I'd do....
No WAY I'd pay $40k for a moble home that's always going to be a moble home.... Non standard parts, depreciate etc...
A friend of mine bought 25 acres with her husband, and they bought a junker moble home for under $3k.
They lived in it for about 5 years while they saved their money and they built a beautiful 3 story house for cash....
They got paid $500 by a guy who hauled the trailer away for scrap, and they have their house and land free and clear.... Those rent payments they paid themselves went a long way towards paying for the house.
What I'd do....
No WAY I'd pay $40k for a moble home that's always going to be a moble home.... Non standard parts, depreciate etc...
Yeah I would never buy a new mobile home at full retail anyway.
My Grandmother did that and it is a money suck to this day. My mom lives in it now, inherited it when my Grandma died; constant problems that aren't worth the money to fix. Poor insulation means $500 electric bills and there's always something breaking. The land it is on is paid for, and at this point it would make more sense to haul it out of there and start over.
My mom bought a $3000 mobile home years ago though, not a biggie if it gives her problems (but it is on a rental lot costing $350 a month) and she uses it as a rental property. If you have a place to put it, someone is always looking to unload a mobile for under $15,000 and it might be a good short term option. Even if you rent the lot. I wouldn't do as my Grandma and her husband did though, and buy a mobile as their "final home".
I don't favor mobile homes for long term plans but they can be a good way to reduce living costs for a shorter period. I am currently looking for a mobile home rental right now, in fact, because in the area I need to live they rent for about $200 to $300 less than any available duplex/apartment/house.
HOA dues suck...in a word. I had a condo and the HOA fees went up. They are unpredictable, so I would suggest buying something with no HOA fees, so you don't have to worry about your budget changing.
Plus, if you get behind on your HOA fees, they can foreclose on you - yes, the HOA, not the bank!
AND, HOA love to appoint yard nazis who will give you a hard time about the veggies your husband planted, which are not allowed according to the new rules, you never anticipated, blah blah. In my condo, I had put a couple of big pots outside my front door with tomatoe plants in them, and the yard nazi gave me a hard time. Condo living is not for me.
Same goes for buying a mobile home and paying rent in a park. Not a stable situation, either, with unknown future costs and rules.
I agree with you that buying is better than renting. Once you own a place, nobody can raise the rent or kick you out. You are always going to find a way to pay the rent. So, logic dictates, you will also always find a way to make the mortgage.
Just pretend you have HOA fees, and sock some money away every month for any repairs. You can also buy an insurance plan to cover appliances, etc., when you buy the house (can't think of the term right now).
Look into FHA financing. Only need 3.5% down, and they will wrap the closing costs into the mortgage. And they're not as fussy about credit, etc., either.
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