To Buy or Not to Buy - Mobile Home 31 January 2008 at 4:42PM in Mortgage-free wannabe 6 replies 741 views

ChristineW_4

:mad: My son, whose marriage has recently broken up and has debts and other financial burdons and is finding it a struggle to run a house and pay a mortgage, has come up with the idea of selling up, paying off all his debts (he will be left with about £22,000) and then buying a mobile home, using a bank loan rather than a mortgage. I think he is mad, but this is based on gut instinct and I think a mobile home will depreciate in value and probably a bank loan will cost more than a mortgage. Has anyone got any facts for or against this move.

Jorgan_2

Make sure he checks everything out regarding the costs involved. I read a thread on here a few backs were someone had to pay the site owner 10% of his sale price and its apparently very common.

Are there any restrictions over how long he can stay on the site? Some sites restrict people to living there for only 10 months of the year.

ChristineW_4

Yes he is aware of these kind of restrictions and pitfalls, but my thoughts are that he will be throwing good money after bad as the life of a mobile home is not as long as bricks and mortar and will eventually have to be replaced so he will yet again have to find enough money to replace it.

chuckles1066

ChristineW wrote: »

Yes he is aware of these kind of restrictions and pitfalls, but my thoughts are that he will be throwing good money after bad as the life of a mobile home is not as long as bricks and mortar and will eventually have to be replaced so he will yet again have to find enough money to replace it.

Not if it's modern.

A friend of the wife used to live in one, fully double-glazed and very, very nice and comfortable.

They're not for everyone but if it's modern and has been properly maintained they're perfectly adequate.

jfdi

Has he actually costed this?

Down here on the S Coast a permanently sited park type home costs more than a small terraced house! There again - I guess the bulk of that is the lease for the plot?

Just take care - not as cheap as first appears!

gilligansyle

I know people who have done similar, bought a really good mobile on a good site for about £45k. The site they are on has restrictions, they can't live there all year, something to do with Council Tax, so they go to Spain for 6 weeks every winter. They used some of the equity from the sale of their house to do it. Yes, it will depreciate, but they have very little outgoings, so can save. Its not for everyone, but does work for some.

Primrose

My own feeling is that you're right and a mobile home will depreciate over time, and they are certainly no longer as cheap as they used to be in comparison with a house or flat. And if he has debts he has to pay off, it could be some time before he can get onto the property ladder again, by which time his mobile home will be older and probably worth considerably less than he paid for it. He should do the sums carefully because renting a small flat and keeping his savings intact via ISAs, etc. might turn out to be a better option in the long term.