Why Rent When You Can Own?
Summer is right around the corner. It’s time to plan the Summer vacation, clean the grill, get the lawn tools polished, and all the other fun things we all do in preparation for the warm weather. For a lot of families, it’s also time to be on “apartment hunt”.
Summer is and always has been a popular time to shop for new digs. In the past it’s been relatively easy to find housing. Whether it was purchasing a new home, or simply looking for temporary housing like an apartment or rental property, you pretty much knew what to expect, whether you’re going to buy or rent.
For the most part, renting was always the first step in the natural progression to homeownership. You’d rent for maybe 2 to 5 years, all the while saving up your money for a down payment on your new house. You’d take the money you saved to the mortgage company, find a home with a realtor, sign all the required documentation at the title company, get the keys and enter your new home. Of course, it has never been quite that easy. But before the housing bubble burst in 2007/2008, it was darn close.
My point is, renting was always the fiscally responsible move to make, if you weren’t ready to purchase a home. My how things have changed!
I’ve been in the real estate arena for approximately 12 years. Before that I was in banking, and was on the front lines when the housing bubble burst. I’ve seen the good, the bad, and the very dirty when it comes to real estate. Which is why my wife and I left the real property game, and became Manufactured Home Dealers and are we glad we made that decision.
Here are the most common misconceptions and questions we’re asked about Manufactured Homes.
“Mobile and Manufactured Home’s depreciate in value.”
That’s just crazy talk. Mobile and Manufactured homes ride the same ebbs and flows that traditional houses do. And just like traditional homes, if you take care of it, keep it up to date, the value will surely appreciate.
“No one will lend on Mobile and Manufactured Home’s.”
Not at all accurate. There are quite a few financial institutions that lend on Mobile and Manufactured Homes. However, just as with traditional home lenders, they will have their own lending requirements, you’ll just have to do your research. For a list of lenders, contact us!
“Mobile Home Parks are full of ‘Older People’.”
What? There are over 80 Family Friendly Manufactured Home Parks just in the Portland Metro area.
“I don’t mind Manufactured Homes, but aren’t the parks kinda dirty?”
As a Manufactured Home Dealer, I’m asked this question by more Real Estate Agents and Real Estate Brokers, than anyone. My answer to them is simple. Just like in Real Property, every city has less than desirable communities. But like anything else, if you don’t do the leg work and actually visit these communities, you’ll have no idea. But painting all Manufactured Home Parks as dirty is not only an insult to Manufactured/Mobile Homeowners but to the entire community.
“Is it a Manufactured Home, Mobile Home, Modular Home or Trailer?”
This is a question I get most often. There’s no real easy answer, because I’ve found over the years that people call them trailers in some areas of the country, and mobile home’s in others. Here’s what I was told; Trailers have wheels, Mobile Homes are pre-HUD (built before June 15, 1976), Manufactured Homes are post-HUD and Modular Homes are just like Manufactured Homes, but once a home is built, typically it cannot be moved again. Again, it really depends on where you live.
“Doesn’t it get expensive having a Manufactured Home Loan Payment, on top of paying Park Rent?”
Hmmm. Let’s just do the math, shall we? Let’s say you are buying a Manufactured Home and need a loan for $50,000. And the park you’re buying the Manufactured Home in charges $600.00 a month for lot rent. Your monthly payment on the loan for 15 years at 10% interest is 537.00 a month. 600 + 537 = 1137 a month. According to Rent Jungle, Average Rent for a 2+ bed 2 bath apartment in Portland is $1,823 a month. Mic dropped.
Now, am I saying that owning a Manufactured Home is for everyone? Of course not. However, many people distance themselves from Manufactured Homes because of some false assumptions.
What misconceptions have you heard about Manufactured Homes?
Would you be interested in purchasing a Manufactured Home?
Are you shocked about how much Rent has gone up?
Leave your comments below.