In NC, most mobile home parks do not sell the land.
I thought the point of buying a property is to eventually own it outright.
If you pay off the mobile home but find yourself unable to pay the lot rent… you can still get evicted. This situation persists forever, unless you move the home.
Buying land with utilities and moving the home is so expensive that most people would have to take out a personal loan or multiple loans to do it.
Personal loans are usually restricted to people with high incomes and/or credit scores. (People who can simply skip the park and buy a house on land in the first place).
Paying the lot rent and mobile home combined also makes it not a particularly cheap alternative to renting a house.
But so many people do it that I feel like I must be missing something that connects the dots and makes this make sense (logically and financially).
What am I missing?
ETA – sorry if this is a very stupid question. My parents were city people so I genuinely do not know how people benefit from using parks
In: Economics
Lot rent used to be very inexpensive. When I got divorced I took all the debt and she took most of the assets.
I bought a mobile home and my lot rent was ridiculously low. Much lower than any apartment or house rent. I got out of debt and had a pretty nice nest egg saved in about two years. Made buying my first house easy since I had the down payment of 20% to avoid PMI.
So it is not a stupid question… But go look at a used trailer and park rent in your area. And then look at average house prices and average apartment rents…. I’d bet you will find a decent used trailer and a lot rent will be lower.
Now… Does that make it a good investment? A difficult hearing and it would depend on HOW you do it. Most people their best investment will be a house. But for example my situation I lived cheap so I could get out of debt and invest and I actually did that.
Do the leg work… I’d bet you will find the lot rent and trailer is less than rent. It is in my area.
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