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Park or buy land
Posted: Sun Apr 11, 2004 4:01 pm
by Jessie
I'm trying to figure out if I would do better buying a cheap bit of land and putting a manufactured home there or put it in a trailer park?
Has anyone done any research on this? (I'm not very good at crunching numbers... lol)
Jessie
Re: Park or buy land
Posted: Sun Apr 11, 2004 7:57 pm
by rmurray
Current rates..good credit...620 FICO scores or above..(lower score credit cannot get approved at all for a home in a park..but might with land)
65,000 home..
In park minimum cash down..$3250..5%
Rate with small down.....11%
240 payments @ $647.70...plus annual insurance and taxes..PLUS park rent ($200 plus)
Purchase property..$20,000 including improvements..
$2550 cash down..3% FHA
$82450 left to finance plus closing costs..about 6%..loan amount $87397
Current rate about 6%
360 payments at 499.42..plus FHA fess of about $40/mo..total of $539.42...Plus insurance and taxes..the same as above except sent to the lender on a monthly basis...
If you are comparing with a park at @200..you would have $847.70..but park rent will increase most every year...even at only 5% per year..rent will be nearly $400 in ten years..
The above home for 20 years w/land would be...$665.14 including the FHA fees...still $200 less per month..
PLUS resale of the home on your land is MUCH better..tens of thousands better..
Re: Park or buy land
Posted: Mon Apr 12, 2004 9:15 pm
by Steve Hartman
Although it depends on where you live-BUY THE LAND! Here in Santa Cruz, CA mobile homes in parks have been under rent control. Some even have ocean frontage and were selling for hundreds of thousands of dollars.
The home owners made fortunes while the owners were stuck with low space rentals. Sooo, the owners went to court. They won! Some of those ocean front units that were paying space rents of $450 per month got space rent increases...$2000-$4000 per month.......and I am not exagerating!
Some seniors have managed to get agreements before the court decided the issue which will allow them to live with moderate rate increases until they die. But, once they do and the unit transfers ownership, the space rent ZOOOOOMS.
The other problem is that these homes are now worthless to the owners who want to sell. So ine essence they're trapped. Can't move and can't sell.
The moral of the story is: If you own your own land you set your own terms and nobody can rob you or put you in situations you aren't prepared for.
Just my humble opinion. You can check out my story above by going to the SantaCruzSentinel.com website. Go to ARCHIVES and try "rent control" or "De Anza."
Best wishes.....