Why Look At Mobile Homes For Sale?Written by Steve Gillman
There are mobile homes for sale, for much less than stick-built houses, in most areas of country. Despite persistent predjudice against them, and sometimes against their residents, mobile homes are cheap housing choice of millions. The advantages are not always obvious, but they are real. First of all, let's acknowledge big "truth" about mobile homes and appreciation or depreciation. It is 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 math to see if you are better off than renting a nice apartment. To "do math" consider lot rent, payment, and remaining value of 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 EstateWhen 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 twelve years I lived in it. That's because even as home deteriorated a little over time (don't all houses?), value of land continued to rise. You also can do what you like with home when you own land. For example, I took in more money from my home than it originally cost, by renting out a room or two over years. As mentioned, mobile homes usually sell for much less than other houses, and this means not lower payments. Also, because of 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 skeptical among you. Equity Building With Mobile HomesIf 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 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 moment). Second scenario: Find a nice mobile home for sale, and borrow only $30,000, at 8% interest, amortised over 10 years. Note higher interest - this is always 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 shorter term, payment will be only $363.99, first month only $200 will go towards interest. That means other $163.99 goes towards principal. You bought more house (built more equity) in this scenario.
| | We Bought A House For $17,500Written by Steve Gillman
Good Homes Under $50,000?My wife Ana and I found cheap homes for sale all over during a seven-week cross-country trip, and we even bought one in a pretty little town in mountains of western Montana. We paid $17,500, spent almost $2000 to fix it up way we liked it, and lived there for several months before selling it for $28,000. You can see a photo of our little pink house on our website http://www.HousesUnderFiftyThousand.com. This wasn't a fluke. There really are great towns where you can still find cheap homes for sale. Cheap Homes, Nice Town: An ExampleIn Anaconda, Montana you can fish for trout, go to a three-dollar-movie in a beautiful old art-deco theatre (named 5th most beautiful theater in U.S., according to Smithsonian), drop some nickles in a slot machine (a dozen casinos), eat at a fine restaurant, stop by bar for a dollar beer, and buy a house for less than $30,000 - all within a four block area! There are good schools and churches, a library with fast internet service, and wildlife (including bears and mountain goats) a few hundred yards from downtown. Why There Are Cheap Homes For SaleThe reason there are so many cheap homes for sale in Butte and Anaconda, is simple. There aren't many good jobs left. I personally found jobs in Anaconda easily-but not good ones. People left area in 80's especially, after mines and smelters closed. This exodus has left one-in-seven "housing units" in Anaconda vacant, according to 2000 U.S. census. This has driven down prices of houses dramatically. Since both towns still have all basic ammenities, are cleaner now, and are recovering, they are great places to retire to, or to move to if you have an internet or other non-location-based business. The economic situation is primary reason you can buy a cheap house in many parts of country. These are towns that have seen troubled times, but are often recovering, and with good reasons. Anaconda, an example we know well, now has a ski resort, a Jack Nicholas golf course, and beautiful scenery. The houses cost four times as much if you go an hour in any direction, and those higher prices are will reach Anaconda eventually.
|