Happiness is what you make it, and while many people say it’s better to buy a nice home than a nice car, ultimately, you get to use your hard-earned money however you wish! But wouldn’t it be nice if you could have both? What most people don’t tell you is that you may be able to have both a great car and a great house when you buy a nice mobile home to save money.
Define Nice Home
To most people, “nice house” is equivalent to a mansion or an incredibly expensive home. But nice is subjective. You can often buy a nice manufactured home with customized options, brand name appliances and stylish, trendy features at a more affordable price than buying a comparable new, site built home.
Define Nice Car
Again, to most people, “nice car” is somewhat subjective. There are a variety of classic cars and sports cars out there that are “nice.” There are also luxury cars that are not sports cars or collectibles, but are still pricey. A nice car could also be any brand-new car that runs great and has low mileage. So, how do you determine what’s worth it?
Benefits of Living in a Manufactured Home
One of the benefits of buying a new manufactured home is that it can free up money for you to enjoy hobbies like collecting nice cars or owning a vacation home. According to a market survey, 27% of all mobile home households (owner-occupied) own one or more specialty products such as a boat, motorcycle, personal watercraft, ATV or snowmobile.1
When you invest in a less expensive home and free up extra cash, you can use your time and money where you like it, including on a luxury car.
How affordable are manufactured homes?
Regal M615 model by Clayton
According to Manufactured Housing Institute, the average cost per square foot for new manufactured homes in 2016, without land costs, was $48.82.2 Comparatively, the average cost per square foot for new site built construction in 2016, without land costs, was $107.18.2 That’s over double the cost per square foot!
Another way to compare is looking at the overall sales price. A new manufactured home has an average sales price of $70,600 versus a new site built home sales price of $286,814.2
Are manufactured homes worth it?
A lot of people wonder if manufactured homes can appreciate. A key part of building equity when you own a manufactured home is owning a mobile home with land. It’s tricky to say whether or not the manufactured home itself will appreciate over time. There are ways to preserve the value of your home, but the best chance to gain value in your investment is usually to own the land where your home is located.
Land is finite and limited, which is why it gains value as the population increases and the demand for land goes up. As one writer so aptly puts it, even if your mobile home were to lose some value, you may be able to sell your land for much more than you paid, along with the added value of the manufactured home. The combination will likely help you come out ahead.
You also must consider what your ongoing costs are over time. I had a friend who owned a large older home in an up and coming neighborhood who chose to sell the home. They sold the home because the total cost to maintain and renovate it was greater than the money they could make from selling the home in a couple years.
Instead of buying an older home that may need extensive maintenance, and possibly require a variety of home improvement tasks, make it easier on your time and wallet by purchasing a new, Prefabulous® home with fewer projects. With a new manufactured home, you may also be able to save on utility costs because of the tight construction of new manufactured homes.
And what does that open you up to when you’re spending less on maintenance and utilities? You have more money to invest in your personal goals, whether it’s wanting to sport a luxury car or to pay down your mortgage faster. Having more cash to spend gives you options with how to spend it!
Real Talk on Manufactured Home Mortgages
Now all this sounds great, but to get the best of both worlds, it seems like all the cards have to be lined up. You need a nice, new manufactured home that fits your specific budget, and you have to finance your purchase in a way that gives you financial freedom.
With so many home options, it’s not hard to find a beautiful, new home for less! But it feels like it’s hard to find good financing options. There are lenders that offer affordable, long-term mortgages if you do some hunting for lenders who finance manufactured homes.
Getting the Best of Both Worlds
The White Star model by Giles
So, what we’re really saying is that an affordable, new Clayton Built® prefab home is worth your investment. It can help you achieve your goal of homeownership AND maybe even have cash to spare!
Despite popular belief, a manufactured home with land may help you build equity in an affordable way and free up your money to spend the way you want to, like on a nice car. You may be able to have a stylish, new home and a new car when you choose to benefit from all the perks of a prefab home.
1. 2012 Mobile Home Market Facts. Caledonia, Michigan: Foremost® Insurance Group, 2012. Accessed February 28, 2018. http://www.foremost.com/mobile-home-market-facts/2012-Market-Facts.pdf.
2. 2017 Manufactured Housing Facts-Industry Overview. PDF. MHI, October 2017. Accessed March 8, 2018. http://www.manufacturedhousing.org.php56-9.dfw3-2.websitetestlink.com/wp-content/uploads/2016/09/1836temp.pdf
Topics Manufactured Housing