Mobile homes, also known as "manufactured housing" or "trailers," are one of the most affordable ways to become a homeowner. And just like any significant investment, mobile homes have both their benefits and drawbacks. For example, their affordability can end up causing depreciation issues, making it more challenging, though not impossible, to sell a mobile home later on.
Thus, before deciding whether to buy a mobile home or not, it is critical to learn more about the benefits and drawbacks of owning one. Energy efficiency, low-risk installation, and the ability to customize your selection are just a few of the benefits. At the same time, disadvantages range from the smaller size of mobile homes to stigmas associated with them and the rapid depreciation of home value. Continue reading to learn more about owning a mobile home and make an informed decision.
Advantages of Owning a Mobile Home
Mobile homes are a great way to get into the housing market. Here are some benefits to owning one:
Affordability
Mobile homes are one of the most affordable ways to become a homeowner. The average cost of a new mobile home is around $50,000, which is much cheaper than other homes. And because they can be easily moved or transported, you will not have to worry about digging into your savings for closing costs. All you need to do is buy and move the unit to the place of your choice.
Energy Efficiency
Another benefit of owning a mobile home is that it is energy efficient. Mobile home has an R-Value of 14, which means that it offers better insulation than most other residential homes on the market. Since temperature fluctuations can be expensive, you will save money on utilities by choosing a mobile home over a traditional home.
Low-Risk Installation
If you have ever wondered how to build a house cheaply, then a mobile home might be an excellent option for you. These structures require minimal site preparation and can be built in as little as four weeks. Once installed, the land rent and mortgage payments are predictable, which makes monthly budgeting easier. And if you decide to move again, it will take just four weeks to move the unit to another location and install it there.
Customization
When it comes to customization, few options are as appealing as those made available to you by a mobile home builder. In fact, many manufacturers offer all kinds of additional features such as electrical upgrades and solar panels. Since such additions are sold separately from the unit itself, you can choose the best options for your needs and budget. You may also be able to find used mobile homes with desirable extras.
Disadvantages of Owning a Mobile Home
Despite all the benefits, mobile homes also have their share of disadvantages. Here are some of the most common ones:
Stigma
There is no denying that mobile homes are often associated with less-than-desirable neighborhoods. But this does not have to be the case, even if there is no shortage of stigmatization in certain areas. This is especially true if you choose a reputable builder, which will ensure that your unit meets or exceeds code requirements. You should also talk with your neighbors about their experiences with mobile homes in your area and make sure they are mostly positive.
Rapid Depreciation
Just like any other type of real estate, mobile homes depreciate over time, but the drawback here is that their value decreases faster. The main reason for this is that they are not always built to last and may need to be replaced after a few years. And while you can help preserve it by regularly maintaining the unit, you cannot completely stop its depreciation.
Small Size
One of the biggest disadvantages of owning a mobile home is that it is much smaller than the average house. This means that you will have less square footage available to you than if you were to choose another type of home. While this is not a problem for some people, others will find that they cannot live comfortably in a mobile home without feeling cramped. If you want more space, then a mobile home probably will not work well for you.
Moving
It is also important to realize that you will need to move your mobile home every few years or so. The reasons for moving vary from person to person, but most people move because they need more space or have bought a new mobile home and do not want to pay rent on two units. Whatever the reason, there will come a time when you must move your current unit and install a new one somewhere else; this will undoubtedly be more often than moving from a traditional house to another. Thus, it is essential to understand that moving a mobile home can be expensive and challenging at times.
Low Resale Value
Another disadvantage of owning a mobile home is that its resale value tends to be relatively low. This means that if you ever want to sell it, you will not get as much money back as you would if you had purchased and decided to sell a regular house. While some people manage to resell their mobile homes for a reasonable price, they usually have to pay for upgrades and repairs; others end up selling them for less money or even at a loss.
In Conclusion
Buying a mobile home is a wise decision for people who do not have much money to throw around. The low cost of these units helps to ensure that you can get a roof over your head while you build up your savings. And while the resale value of mobile homes tends to be lower, they can still be sold for decent amounts of money as long as you are willing to put in some work and pay for repairs and upgrades. Mobile homes also offer plenty of customization options and can drastically cut down your heating and cooling costs.
On the other hand, owning a mobile home involves some risks. The biggest of them stem from the high depreciation rates of these structures and the fact that they are often associated with lower-income families. Thus, if you are looking for a home that will retain its value over time, then a mobile home may not be suitable for you.
However, if you want a low-cost home, then a mobile home might be a great option.
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