While digital nomads may choose to live in a recreational vehicle and tour the country, most people are left with only three options: traditional homes, apartments, and mobile homes.
If a traditional home (whether house or apartment) isn’t the right option for you, you’ll have to choose between renting or buying a mobile home.
So the question is, which is the better option?
Both have their pros and cons. It will boil down to your unique needs, habits and circumstances. To help you make an informed decision, we’ll briefly go over the pros and cons of each option.
Pros of Renting a House/Apartment
Flexibility and Freedom
Job offer in another city? You can easily move whenever you want.
Better still, no house to sell before leaving, so you can move as soon as possible. Plus, there’s less hassle in renting as opposed to buying and moving a mobile home.
Less Maintenance
A lack of maintenance makes renting the more attractive option to most people. When you buy a mobile home, any repairs and upgrades become your responsibility. In an apartment, however, repairs and any maintenance cost you nothing. The landlord bears the cost.
No Property Taxes
The beauty of renting is that you don’t get the property tax bill. In some cases, the landlord may still pass part of this cost on to you, which looks as a con. However if this is the case, anyways it will be a benefit for you because you would pay only a portion of the taxes, which is significantly lower than what you’d pay if you owned the property.
Cons of Renting a House/Apartment
Doesn’t Build Equity
Perhaps the biggest downside to renting is that it doesn’t build equity. Your rental payments end up building up your landlord’s wealth, not yours. If you are a person that believes that renting is throwing away your money, this is not an option for you.
Rent Can Increase
Some landlords are notorious for increasing rent at will, and you won’t know how much you’ll pay in a year or two until that time comes. Sometimes, rent increases can be caused by external factors such as inflation and economic instability.
Can’t Modify the Property Without the Owner’s Consent
Want to replace marble with granite in the kitchen? Or perhaps add a jacuzzi in your bathroom? The owner will have the final say. In a mobile home, however, you own the property and can undertake any renovation or remodeling project that adds value to the property.
Pros of Buying a Mobile Home
Lower Costs
Buying a mobile home is a more affordable alternative to homeownership. Since they’re manufactured in factories, mobile homes usually cost less than conventional rental properties for sale. You can find a brand-new manufactured home for under $80,000.
While the upfront costs of acquiring a mobile home are quite high compared to renting an apartment, mobile homes are cost-effective in the long run.
You Build Equity
Equity is among the top reasons to buy a mobile home as opposed to renting. When you take care of your property and pay your mortgage on time, it builds equity. In contrast, your monthly rent payments go into your landlord’s pocket and don’t build wealth for you.
Flexibility
As the name implies, mobile homes are “mobile,” or in other words, easily movable. Don’t like your neighborhood? You can hire a contractor to move your home somewhere else.
You Can Make It Your Own
When you buy a mobile home, you make it your own. You can make any modifications you want—repaint it, partition the property, add a jacuzzi, etc.—without consent from anyone.
In contrast, if you rent an apartment, you may have to live with whatever carpet, paint, and finishes the landlord chooses.
Greater Sense of Privacy
In an apartment, tenants usually share walls. You may have to contend with all sorts of noises—quarrels, music, babies crying at night—from neighboring apartments. In a mobile home, you get your own space and can enjoy greater privacy.
Cons of Buying a Mobile Home
Need to Buy Land
You might have to incur the cost of buying land on which your mobile home will be placed. The alternative is to look for a space in a park, which can be difficult to find.
Quick Depreciation
Mobile homes usually depreciate faster than traditional homes. While this can be good news from a tax perspective, it negatively impacts your home’s value.
Negative Stigma
Mobile homes are associated with misguided stereotypes that make them a less attractive option. Some people see them as housing options for the poor, while others deem them “dangerous” and unstable.
Should You Rent or Buy a Mobile Home?
Although money plays a critical role in determining whether to rent an apartment or buy a mobile home, it’s not just about money. There are many other factors to consider, including your lifestyle, career goals, privacy needs, and how long you plan to live in a certain location.
If you have enough upfront costs and are looking for an affordable alternative to homeownership, a mobile home is a great choice. But if you move a lot and don’t have enough cash to buy a mobile home, renting is your only option.
1.800.960.6007
