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
My brother purchased a double wide trailer. I forget what the principle of the loan was for, but he was paying around $500 a month and had it paid off in 7 or 8 years. It needed a bit of work, but nothing he couldn’t fix up himself. Lot rent used to be $120, it’s gone up a bit since then but I think he’s only paying around $200. As a point of comparison, at the time, I was paying $700 a month for a single bedroom apartment less than half the size of his trailer.
He’s now paid that off and ONLY has to worry about the lot rent. He can sell the trailer (which would likely net him a profit, considering it’s appreciated in value), or use it as equity to secure a loan on something else. I’m still in the same apartment, now paying over $1000 a month, with nothing to show for the thousands of dollars I’ve dumped into this place.
So YOU tell ME what you think the point of a mobile home is.
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