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My husband and I are thinking about purchasing a mobile home instead of renting again. I was just curious on the expenses, maintance, etc. If anyone has lived or is living in one now, any tips would be great! We are thinking about the Springfield, MO area also.

6 Thoughts on Thinking about buying a mobile home.?
  1. Reply
    December 2, 2011 at 5:23 am

    It can be a good choice, until a tornado comes.
    Just remember that a mobile home is like a car–it depreciates. Unlike a home or condo it will not increase in value–although in this market homes are losing value. Will this go on your own land or in a park? The lot rent and utilities can be increased at will by the park. There may be state taxes, annual or one-time.
    However, it may be helpful for your income taxes as you can deduct your mortgage interest, and if you own your land, your property taxes.
    Just be sure it’s a good value. I’d recommend a used one as they depreciate so quickly, and the new ones seem to be overpriced the last 5 years or so. For the amount of money for many new ones, you’d be better off buying a condo. It should be significantly cheper than a home or condo. More than $ 100,000 for a MMH is ridiculous.

  2. Reply
    Ron B
    December 2, 2011 at 5:54 am

    I understand the appeal, but you are going to regret it later.
    They are expensive to keep up, and you still have to make payments. Also you have to rent the land anyway. They are also the only home asset the depreciates, not go up in value.

    The only exception is if it is on it’s own plot of land, and you are buying the land at face value.

    You are much better off renting and putting theextra money you would spend in a seperate account until you have enough to put down on your first house.

  3. Reply
    December 2, 2011 at 6:02 am

    The number one issue with mobile homes is that they usually depreciate in value. Just finding a lender can be difficult because they know that if you default on payments, they will not be able to sell your home for as much as you owe. This issue will come up again if you try to sell this home later, your buyer will also have a difficult time finding a lender willing to finance such a home.

    If you pay $ 50,000 for this home today and want to sell it in five years, you might find it’s only worth $ 20,000. You’ll also have to come up with cash to cover the difference if you want to sell it to someone else. So while it may seem that you’re throwing money away when you rent, it can actually be less costly than what it takes to get away from a mobile.

    I’m from Missouri and know several people in and around Springfield. It is a great little city, but they get a lot of bad weather, including tornados. In case you don’t know, a mobile home is the LAST place you want to be if a twister is headed for you. There are so many homes for sale there right now. Have you checked with a buyer’s agent to see if you can find an existing home within your price range? You might be surprised at what you can afford in the area.

  4. Reply
    December 2, 2011 at 6:18 am

    Remember that a mobile home is not considered real property. You purchase by signing a Bill of Sale, need to register and license at the Dept of Motor Vehicles. It will depreciate and you may not be able to sell it for more than you paid for down the road.

    If you can afford a condo or a small house at this time your investment in yourself is well worth it.

  5. Reply
    Big Bully
    December 2, 2011 at 6:37 am

    Stop thinking about it, this is not a good investment. You still need a place to put your mobile home. Unless you have land, you will be paying someone rent to put this home. You will also find there are rules in these parks that you have to follow. My suggestion is just save your money and put it towards a house, you will be allot happier.

  6. Reply
    December 2, 2011 at 6:57 am

    If you are going to buy one, buy used. Buying a new MH is similar to buying a new car, they are never worth what you paid for them once you drive them off the lot.

    MH’s are a bad investment overall, but at least a used one has some of the depreciation out of it already.

    Also, when you are financing a MH, typically the rate is around 10%, if your credit is good.

    If the MH is in a park, you will have park rent each month. Expenses and maintenance are not that much different than a stick built home.

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