A Collapsed Housing Market
The average price of a mobile home in 2013 was $64,000, while the average cost of a newly-constructed home for a single family was $269,000. Understand: these are averages. It’s very possible to find an older, lived-in home on the market for $100,000. There are even some tiny cottages which aren’t of the mobile variety that can be purchased in the $50,000 to $100,000 range. Likewise, there are mobile homes that can be purchased for under $10,000; they’ve just been lived in.
Here’s the thing: because of the collapsed housing market, and the high costs involved in any sort of home ownership today, many people are moving toward the mobile housing option. Just look at the differences in mortgage costs.
For a loan amount of $64,000 financed over a loan term of 5 years at 6% interest with an upfront fee of $1,500, total payments make an accumulated amount of $75,737. Now that comes to just $1,262 a month, or basically the cost of two people living in an apartment paying rent. Financed over ten years, it comes to $723 a month; or something practically manageable for someone with an income well below the poverty line.
Meanwhile, the same APR with the same upfront fee on a $260,000 home ends up costing $303,091.70 after interest on the loan, and would come to $5,052.52 a month over five years, or $2,899.03 over ten. Check this handy APR calculator to run some numbers yourself.
Avoiding The Ball And Chain
For anyone making less than seven thousand a month, or less than four thousand a month, that kind of payment is just unrealistic. A mortgage of this kind ends up becoming a literal ball and chain. Meanwhile, with a mobile home, over ten years you own the entire structure at a rate someone with an income under $1200 a month could easily pay. Resale value isn’t commensurate, but it’s a lot less likely the bank will take back your home.
Living Better On Less
Many object to this lifestyle under a “Keeping Up With The Joneses” ideal, but really that ideal is a fiction. The middle class has so been eroded in this country that, except for the extremely wealthy, most people are constantly dancing around the poverty line. But one of the reasons that happens is they try to take on a $260,000 mortgage in their mid-twenties with a job that only pays $1200 a month. It’s downright senseless!
Of course such a lifestyle will incur debt; endless loans will be needed just to make ends meet, and those don’t include pre-existing college loans and the like. But the thing is, if you just downsize your lifestyle while you’re young, you can upgrade more than others around you.
An Exceptional Interior
Consider the sleek new vessel sink trend. These sinks are ideal for mobile homes, they’re exceptionally chic, and they can be taken with you to a fixed property when you’ve grown out of your mobile home — if you grow out of your mobile home. That’s really the chief advantage people forget with this lifestyle: you can go wherever you want with it. Sure, the cost of moving the entire house is a little bit high; but once you’ve paid off your property, it’s a bill you could sustain in a few months’ time.
Some find that this feature of mobile home life recommends it to fixed properties. Regardless, when mortgage is low enough to be overtaken in five years — or bypassed through direct purchase, in some cases — it’s possible to outfit the interior such that it’s fit for a king.
Title: Super-Connector at OutreachMama
Wendy is a super-connector with OutreachMama and Youth Noise NJ who helps businesses find their audience online through outreach, partnerships, and networking. She frequently writes about the latest advancements in digital marketing and focuses her efforts on developing customized blogger outreach plans depending on the industry and competition. You can contact her on Twitter.