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  • FIRST POST
    • bbarroso
    • By bbarroso 5th Sep 17, 5:36 AM
    • 62Posts
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    bbarroso
    Mobile homes
    • #1
    • 5th Sep 17, 5:36 AM
    Mobile homes 5th Sep 17 at 5:36 AM
    I was pondering the option to buy a mobile home, as a more attractive option to renting. I see many of these are in quiet suburban locations, away from party teens and busy neighbourhoods, and therefore it makes sense to evaluate all my options...

    I'm guessing by buying one I could avoid all the mortgage hassle and would not loose my money entirely, as with renting. I read mixed reviews about this type of properties.

    Any advice?
    Last edited by bbarroso; 05-09-2017 at 5:41 AM.
Page 1
    • davidmcn
    • By davidmcn 5th Sep 17, 8:20 AM
    • 5,775 Posts
    • 5,529 Thanks
    davidmcn
    • #2
    • 5th Sep 17, 8:20 AM
    • #2
    • 5th Sep 17, 8:20 AM
    I'm guessing by buying one I could avoid all the mortgage hassle and would not loose my money entirely, as with renting.
    Originally posted by bbarroso
    But you will (probably) be renting the land, your glorified caravan is only going to depreciate in value, and the leases tend to be rather one-sided.
    • BBH123
    • By BBH123 5th Sep 17, 8:53 AM
    • 405 Posts
    • 539 Thanks
    BBH123
    • #3
    • 5th Sep 17, 8:53 AM
    • #3
    • 5th Sep 17, 8:53 AM
    The only time I would have one is on my own land, I have friends who have one and it is fabulous with none of the stereotypical views of a caravan. Once inside its like a small flat and you really wouldnt notice the difference to a building.

    My reservation would be some people still look on them as trailer trash and resale may be hard. Depending on your park its not always a cheaper option.

    If I were looking for cheaper accomodation I'd probably go down the narrowboat or log cabin option or even tap into the bohemian side and convert a large vehicle and go wherever I fancied.

    Bricks and morter are so last century lol and having watched a couple last night search for a 2 bed flat at 445,000 that is a huge milstone around you neck
    • ProDave
    • By ProDave 5th Sep 17, 9:18 AM
    • 270 Posts
    • 331 Thanks
    ProDave
    • #4
    • 5th Sep 17, 9:18 AM
    • #4
    • 5th Sep 17, 9:18 AM
    The pitfalls are:

    They depreciate in value as they get older. Like a car, the worst value is to buy a brand new one.

    You rent the land, check what the rent is and how much it is likely to go up.

    They are expensive to heat, the walls are very thin and not much insulation.

    When you sell it on site, the site owner can legally claim up to 10% of the sale price as commission.

    Some sites will have an age limit, so when your unit reaches that age you will have to remove it and replace it with a newer one. Check those sorts of detail in the site rental agreement very carefully.
    • 00ec25
    • By 00ec25 5th Sep 17, 9:41 AM
    • 4,756 Posts
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    00ec25
    • #5
    • 5th Sep 17, 9:41 AM
    • #5
    • 5th Sep 17, 9:41 AM
    they are more usually called PARK HOMES now rather than mobile homes

    you will not get a mortgage as lenders won't lend on them because they depreciate in value, they do not increase or remain stable, they go down in value because they are just like a car, they get old and become worthless.

    if you cannot buy for cash you will need a personal loan. The interest rate on that may be high and the repayment term certainly will not be decades.

    there are loads of threads covering the rest of the facts of owning a park home - use the search function, you are not a newbie
    • Ozzuk
    • By Ozzuk 5th Sep 17, 11:50 AM
    • 1,102 Posts
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    Ozzuk
    • #6
    • 5th Sep 17, 11:50 AM
    • #6
    • 5th Sep 17, 11:50 AM
    To add to the above excellent points, each park will also define how long you can actually stay there. Year round is rare, many often just have 2 week exclusions in Feb but some are longer.

    The homes themselves can be excellent, my parents have one that my dad stays in most of the year as he works on the park. Its roomy, central heating, double glazing and they even have a private garden. However they know the owners well, there are a lot of horror stories about losing mountains of cash through fees/resale/depreciation/age limits.
    • gingercordial
    • By gingercordial 5th Sep 17, 12:00 PM
    • 983 Posts
    • 940 Thanks
    gingercordial
    • #7
    • 5th Sep 17, 12:00 PM
    • #7
    • 5th Sep 17, 12:00 PM
    Some parks may also require that you get your utilities through specific providers that they have a kick-back arrangement with. Needless to say, they will not be the cheapest deals out there so you will be overpaying for your electricity bill.
    • saajan_12
    • By saajan_12 5th Sep 17, 12:43 PM
    • 755 Posts
    • 494 Thanks
    saajan_12
    • #8
    • 5th Sep 17, 12:43 PM
    • #8
    • 5th Sep 17, 12:43 PM
    Mobile homes wear out and depreciate like a car, whereas the idea with a house is it is a home for life that holds its value.

    * Mobile homes wear out, getting increasingly expensive to repair until the site typically requires you to replace it. A house has a lower maintenance cost relative to its value and wouldn't need replacing. After you've paid off the mortgage, expect to be able to live there for life.

    * Mobile homes depreciate like a car so you lose the decrease in value whereas a house is expected to hold its value or appreciate with inflation, meaning your only cost is the interest.

    * Mobile homes face land rent, regulations and the site owner can impose their restrictions on who can live there, whether you can let, mandatory vacancy periods, restrictions on the sale, etc. A freehold house has little/no regular mandatory payments and minimal regulations (only those imposed by council not a superior landlord.
    • ProDave
    • By ProDave 5th Sep 17, 12:50 PM
    • 270 Posts
    • 331 Thanks
    ProDave
    • #9
    • 5th Sep 17, 12:50 PM
    • #9
    • 5th Sep 17, 12:50 PM
    Just to give you an idea of true value. We are currently living in a small 28ft single unit, on our own land while we build a house. That's a 2000 model and it cost us £4500 to buy it and have it transported to our site. Now go and compare what the asking prices are for even the smallest unit on a site.
    • lincroft1710
    • By lincroft1710 5th Sep 17, 3:06 PM
    • 9,613 Posts
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    lincroft1710
    Park home sales are usually targeted at over 50s as the majority of park home parks have minimum age restriction for occupiers and these also tend to prohibit under 16s living there permanently (grandchildren can visit and stay for a few days.

    Heating and insulation in a proper park home (as opposed to a static caravan) will be to a high standard. Year round occupation will be allowed as ph parks are for permanent living. The majority of ph will be double width (twin) units usually 36ft x 20ft or larger, smaller and single units are available. New twin units are not cheap, you're looking at six figures sited, £200K+ on a good park is not unusual
    • 00ec25
    • By 00ec25 5th Sep 17, 3:34 PM
    • 4,756 Posts
    • 4,129 Thanks
    00ec25
    Park home sales are usually targeted at over 50s
    Originally posted by lincroft1710
    In the context of Rightmove "park home" is merely the generic category under which caravans / mobile homes / static caravans &/or park homes are listed

    i agree however you do have to read each listing carefully for any age restrictions (and any of the other restrictions already discussed)

    for example:
    no age restriction but no pets: http://www.rightmove.co.uk/property-for-sale/property-61526260.html

    holiday use only: http://www.rightmove.co.uk/property-for-sale/property-66232112.html and incredibly with only 8 years lease remaining that means the annual holiday will cost £7,750 per year

    no restrictions at all: http://www.rightmove.co.uk/property-for-sale/property-49932300.html
    Last edited by 00ec25; 05-09-2017 at 3:40 PM.
    • Mupette
    • By Mupette 5th Sep 17, 4:13 PM
    • 4,204 Posts
    • 6,912 Thanks
    Mupette
    If you want one abroad, my parents have one for sale in France with amazing views

    GNU
    Terry Pratchett
    ((((Ripples))))

    • teddysmum
    • By teddysmum 5th Sep 17, 5:57 PM
    • 8,217 Posts
    • 4,891 Thanks
    teddysmum
    I know of sales complications on holiday sites, but in a tv programme, a couple of years ago, people reported similar problems for them. Many sites also don't allow pets (difficult for an elderly single person needing companionship).


    When selling a static caravan onsite but privately, the site owners charge what comes to 15% (once VAT is added) of the value,if they think you are underselling and also may charge the person who doesn't purchase from them higher plot fees going forwards.


    The other option is selling to them,but they offer peanuts then sell yours for a high price or get rid via an off site trader,if it's getting on in years.


    There was an article, on a website, last week, where someone wanted neither option and decided to sell to a dealer, off site.
    However,the site owners would not let the dealer collect from the plot,so charged the owner for disconnecting the power etc and moving the home onto a car park for collection.


    It is illegal to resell power at a profit, but sites have a way around this by claiming distribution expenses.
    • lincroft1710
    • By lincroft1710 5th Sep 17, 8:26 PM
    • 9,613 Posts
    • 7,610 Thanks
    lincroft1710
    In the context of Rightmove "park home" is merely the generic category under which caravans / mobile homes / static caravans &/or park homes are listed
    Originally posted by 00ec25
    Which just shows RM's ignorance!

    The manufactured home industry uses "park home" (and has done for many years) to mean a home on wheels constructed and equipped for the purpose of living in 365 days a year (366 in a leap year). Park homes use different construction materials and methods from those of static caravans.

    Some estate agents specialise in selling both new and used park homes on genuine residential parks
    • bbarroso
    • By bbarroso 6th Sep 17, 5:06 AM
    • 62 Posts
    • 6 Thanks
    bbarroso
    The land seems to be the most impeding factor, as with anything land related in the UK, at least for habitation.
    The caravan is relatively inexpensive. Of course they depreciate, but this goes both ways. If I can get my hands in one for a couple thousand, it would theoretically pay for itself in a relatively short period of time, before it is actually unusable.

    Then the question arises, would it be a better idea to invest in some property that goes into auction in need for renovation? I see them going on auction for a very modest sum of money, but unsure how much the final bid ends up being. Perhaps I should attend a few just to get an idea?
    • ProDave
    • By ProDave 6th Sep 17, 8:53 AM
    • 270 Posts
    • 331 Thanks
    ProDave
    The land seems to be the most impeding factor, as with anything land related in the UK, at least for habitation.
    The caravan is relatively inexpensive. Of course they depreciate, but this goes both ways. If I can get my hands in one for a couple thousand, it would theoretically pay for itself in a relatively short period of time, before it is actually unusable.
    Originally posted by bbarroso
    As I said before, we paid £4500 for ours for use on our building site. That will pay for itself in saved rent easilly. We could have got one cheaper, £2K would get you one still perfectly usable But we chose the one we have due to it having an unusual internal layout that suited us. Plus the fact once we move into the house, the 'van will remain and be converted into a workshop and studio (legally a "garden outbuilding") so we wanted a good one, and the unusual layout of the one we have suits that future use better than some others.
    • Waterlily24
    • By Waterlily24 6th Sep 17, 12:01 PM
    • 844 Posts
    • 441 Thanks
    Waterlily24
    We bought a very cheap one to live in when we did a large extension - roof had to come off completely. Can't remember the exact cost but I think it was well under £1000. Did us fine, we were in it over Christmas too. Don't think we could have sold it on as it didn't have any mod cons ie CH or Double glazing. Also the floors were just beginning to go lol.

    We also chose a 10ft wide one because a 12ft would have been a lot more (in money) to transport.

    We parked it in our garden,
    • lincroft1710
    • By lincroft1710 6th Sep 17, 3:32 PM
    • 9,613 Posts
    • 7,610 Thanks
    lincroft1710
    The land seems to be the most impeding factor, as with anything land related in the UK, at least for habitation.
    Originally posted by bbarroso
    Unless you already own or rent a piece of land with permission for a residential caravan (often time restricted), the economics won't add up. Even if you could find and buy a suitable piece of land, you cannot just put a caravan on it and start living in it.

    As previously stated buying a static on a holiday park is not a good idea, site rent can easily be £4,000 pa. On a proper residential (365 day a year occupancy) rents are more reasonable £2,000 pa upwards
    • movilogo
    • By movilogo 6th Sep 17, 3:36 PM
    • 2,269 Posts
    • 1,541 Thanks
    movilogo
    Mobiles homes are actually like cars - depreciating assets.

    A house will appreciate in value (nearly everywhere, over time) where as a car (including mobile home) will depreciate in value.
    Happiness is buying an item and then not checking its price after a month to discover it was reduced further.
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