Is this a good idea

**sweeps** · 06-16-2006, 08:59 AM

Re: Is this a good idea

It's an intriguing idea. But one question comes to mind. How did you determine that you'll be able to sell the manuf. home for ~$120K? That's about a 60% increase in value. Keep in mind that the real estate values are probably going nowhere (if not declining) over the next few years. Also what is the average appreciation on manuf. homes vs. other homes? It seems to me they would appreciate slower, but I honestly don't know.

**Ima saver** · 06-16-2006, 09:29 AM

Re: Is this a good idea

Manufactured homes are like mobile homes, they do not appreciate over time.

**lucasrd** · 06-16-2006, 10:31 AM

Re: Is this a good idea

I'm just going off of what my 10ac with this house appraised for ($134K)

I bought the land for $20000 a few years ago
House for $70,000
Well/Septic/elec/misc $10,000

But just by making the once vacant land livable the value goes up...that's what I'm hoping for...

Also going off of looking at local realestate listings in my area and looking at similar listings...currently 1400 sq ft. double-wides on a city lot are selling in that range...

if I have a $70,000 house and a $17,000 lot + value added for making it livable...hoping to atleast get my money back...heck, I'd be happy to get 80% back...

**Ima saver** · 06-16-2006, 01:46 PM

Re: Is this a good idea

Do you live in a manufactured house now?

**lucasrd** · 06-16-2006, 03:06 PM

Re: Is this a good idea

No...I submitted a floorplan of the manufactured house I have my eye on to my banker for an appraisal...for subsequent financing options...

I am currently renting a house...

**cschin4** · 06-17-2006, 03:02 PM

Re: Is this a good idea

No, I don't think this is a good idea. If you are planning to stay at the location you are at, then put a home on it that you will enjoy. Or, put a home that you could add on to in the future. Buy the lot in town. Then, when you get this paid off and are more financially sound, sell the manufactured home with lot and build a new home on the town lot. Or, just skip buying the town lot and instead put that toward your home.

**b4freedom** · 06-19-2006, 09:32 AM

Re: Is this a good idea

Here is the problem with your idea:

Manufactured homes drop drastically in value. It doesn�t matter what anyone say, they do not appreciate over time. Ideally, you want to find something other then a manufactured home to live in. Furthermore, why spend $75,000 for a home that doesn�t appreciate?

Why buy a second lot? This will slow you from your goal of saving more money for your dream home.

Here is another idea: Divide your 10 acre lot into two. One lot will be � to � acre. The other lot will be the remaining land. On the smaller lot, place your temporary home. Once you have enough saved, build your new house on the larger lot. Once built, sell the small lot (with home).

If you feel that your only option is a manufactured home, I would suggest that you buy something used and greatly reduced in price. Again, why spend $75k on something that depreciates? Remember, this is short term (several years), temporary housing until you are ready for something better. Also, by purchasing something greatly reduced in price, you�ll be able to save much more toward the home you really want. I�m assuming that you�re going to get a 5.625% rate (because $85k over 15 years with $700.17 payment is 5.625%). Let�s assume that you buy used for $35k and you still need the $10k to build and you have the same term and rates. Your monthly payment would drop down to $329.29.

There are also better options then manufactured homes. You can opt for a prefabricated or modular home. Or, if you�re handy and willing to put in the sweat equity, you can opt for the �do it yourself route�; for example, www.colonialstructures.com. Going this route will put a permanent home on the lot, which is more likely to increase in value.

**markio26** · 06-19-2006, 09:44 AM

Re: Is this a good idea

i agree with b4freedom... good advice..... real estate goes in cycles... right now it is a buyers market.. i would wait for direction before doing anything... is the area where you are living appreciating right now or declining in value???

**flash** · 06-20-2006, 02:39 PM

Re: Is this a good idea

Excellent post, b4freedom!

**lucasrd** · 06-20-2006, 05:12 PM

Re: Is this a good idea

thanks for the great feedback from all

The area I live in is appreciating in value (the lakes area in Minnesota). My 10 acres of flat land has gone up about $2500/yr since I purchased it in 2004.

We went with a $75000 house because the payment fits our budget. We're currently saving 20% of my income and 100% of my wifes (she grosses 90K/yr)

... my only sticky point is still this:

currently there are much older & smaller manufactured homes (1985 - 1990) on similar lots that are selling in the $99,000 area...I just find it hard to believe that I couldn't sell it for that much in 5-10 years???

**debtfreeme** · 06-21-2006, 11:55 AM

Re: Is this a good idea

Can you get a building loan to build a very basic house? Can your dream house be built in stages? Divide it up into 3 pieces and build from there? It might take it a little longer but it is better than losing money with the manufactured home deal.

My best friends parents did that. Divided their 5000 sf dream home into three pieces. Each time the built it was part of the plans and their house 4 years later is incredible and they owe nothing on it because they built it themselves over those 4 years. I mean with a contractor etc but they were able to pay cash except for the garage which cost them 18k. But they paid it off in less than a year with teh bank loan. Anyway,

While the RE in town will go up the house will simply lose value before you can move it to the new lot.

**debtfreeme** · 06-21-2006, 11:57 AM

Re: Is this a good idea

and with real estate you can never gage what will happen. Never count your eggs 9chicken??) before they hatch. IN CA in the mid 80's to mid 90's the market slowed so much people were losing money when they sold.

Is this a good idea