Reality of owning a Manufactured Home (investment, mortgage, mortgage, banks)
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Basically, I just want to know what the pros and cons are of owning a manufactured home. The most obvious pro is they're cheap compared to a house... but does that pay off besides keeping your mortgage low? And the only con i can think of is that they have a crappy resale value, so clearly that would be a reason to not buy one if that's my intentions. Otherwise though, i need the nitty gritty if they're worth buying. Preferably from people that own/have owned one and know what they're talking about.
Basically, I just want to know what the pros and cons are of owning a manufactured home. The most obvious pro is they're cheap compared to a house... but does that pay off besides keeping your mortgage low? And the only con i can think of is that they have a crappy resale value, so clearly that would be a reason to not buy one if that's my intentions. Otherwise though, i need the nitty gritty if they're worth buying. Preferably from people that own/have owned one and know what they're talking about.
A manufactured home IS a house it just happens to be partially put together in a factory and shipped to be finished on the building site.
They can be less expensive however, they can also be much more expensive it depends on the home you choose.
The resale is that of any other property, you can list the price you want for it but you may not find someone who wants to pay that price. A property or any other item is worth what someone is willing to pay for it, no more, no less.
If you do buy one you should think twice before buying one on a rented lot. Prices go up every year at least $20 or so, if you are paying $700 now you will be paying more than $800 in 5 years and more than $900 in 10 years. So you have upkeep on the house, have to maintain it, may have to maintain the yard, mowing, etc, have to pay water and have to pay pass thru property taxes.
If you do want one on a rented lot try to find one 5 to 10 years old, people can't sell them for what they even owe and will practically give them away just to get rid of the lot rent.
Banks are reluctant to give loans because on a rented lot they are truly almost worthless.
The resale value is like owning a car. It goes down very quickly. And it's nothing like a stick built house, they are much cheaper and won't last as long as a house. We have so many down here in the south and they look terrible only a few years after being placed.
You know a lot has to do with where the home is built and located. There are certain places, rural areas in particular, that manufactured homes are well accepted and may hold their value as well as stick built homes. In other areas, they are not desirable and may lose their value quickly. On the bright side they are less expensive. They may very well have quality equal to or better than stick built (they are built in factory where tolerances are more exact). But styling is often mundane, you can recognize a manufactured home a block away (I am not sure why the industry hasn't improved on that).
So it depends on many factors. Where will it be located? How long do you expect to live there? Does the building meet all your needs for the foreseeable future.
If you do buy one you should think twice before buying one on a rented lot. Prices go up every year at least $20 or so, if you are paying $700 now you will be paying more than $800 in 5 years and more than $900 in 10 years. So you have upkeep on the house, have to maintain it, may have to maintain the yard, mowing, etc, have to pay water and have to pay pass thru property taxes.
If you do want one on a rented lot try to find one 5 to 10 years old, people can't sell them for what they even owe and will practically give them away just to get rid of the lot rent.
Banks are reluctant to give loans because on a rented lot they are truly almost worthless.
What you are referring to is a "Mobile Home" not a Manufactured Home.
Manufactured Homes are placed on one's own property not in a Mobile Home Court with "lot rent" because only Mobile Homes are allowed to be placed there.
What you are referring to is a "Mobile Home" not a Manufactured Home.
Manufactured Homes are placed on one's own property not in a Mobile Home Court with "lot rent" because only Mobile Homes are allowed to be placed there.
A manufactured home, and a mobile home are the same just using different names for the same item. A manufactured home/mobile home can be placed in a mobile home park, a lot where permitted, and on rural property.
There are developments, where each person owns a lot same as with stick built homes, and a double/triple wide manufactured home/mobile home is placed on their lot.
About 20 years ago my daughter purchased a V.A. repo on such a lot for $27,000 located on the Oregon Coast. 3 years later she sold it for $89,000. Not a bad investment on her part.
CSD610, you are confusing some terms. Mobile home = manufactured home. The term used changed at some point a few decades ago. What you are discussing is called MODULAR. A modular home has sections build in a factory then joined and set upon a foundation that is poured at the home site. Modulars are usually less expensive to build than stick built, but use the same materials and finishes.
Here in NC, a manufactured/mobile home can be 'converted' to a different tax classification if they are wheeled to personal piece of land then the axels are removed and a foundation installed after the fact. Someone who has one can provided more info, but in NC rural areas you often see these on an acre or two of land. I think this allows one to obtain a conventional mortgage. I have never owned a manufactured home but see that they can be a reasonable alternative for someone on a tight budget.
What you are referring to is a "Mobile Home" not a Manufactured Home.
Manufactured Homes are placed on one's own property not in a Mobile Home Court with "lot rent" because only Mobile Homes are allowed to be placed there.
No, you must be thinking about RVs. Mobile homes and manufactured homes are the same thing. You can have it in a rented lot or own the land.
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