Dear memebers,

All of you must have had experience on purchasing your first house right?

I am thinking about purchasing my first house.

I am too young to afford a real house. So I am looking at the modular houses.
They are not mobile homes, they are built homes ranging from 900 to over 3000 sq ft with a wide variety of floor palns including cape models, ranches.

I have considered their fair value might not be as much as the "real" house, but I don't have to sell them, I can always lease it after I get my second real house as kind of investment, right?

I am thinking that I will have people build a solid foudation, and purchase some acers in a good neighbourhood,.



Additional information, the one I am looking at in front of me, is a "willow" 1248 sq feet 3 bedrooms 2 baths. The base orice is $33,600.

What do you think about my plan? Any input is appreciated.

I know I work hard and I should be able to manage my finance well.

PS. I just don't want to rent and throw my money into water,lol. I want to own one!

Why not purchase a condo or a townhouse instead? The resell on those is pretty steady and they can also be rented out when you get to purchase your first house.

I'm not sure how practical the purchase of a modular home is.

I agree with Glinda about buying a condo or townhome. Mobile homes and modular homes are difficult to resell and even rent to responsible people--and it's a buyer's market right now. Of course, that means you, as a buyer, have leverage.

Are there condos and townhomes near where you live?

I am thinking...
It's much cheaper to have a modular house and I know I can get this land with a great deal at this really good neighbourhood. ( I think I can manage it without much risk)
I can enlarge the modular house but I can't do much to a condo/townhouse...
Then I won't resell the house, just rent it out to get a steady income in the future.

Quote:

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Originally Posted by Wondergirl

I agree with Glinda about buying a condo or townhome. Mobile homes and modular homes are difficult to resell and even rent to responsible people--and it's a buyer's market right now. Of course, that means you, as a buyer, have leverage.

Are there condos and townhomes near where you live?

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Yes, there is this one I looked about $150,000 /1150 sq ft not that bad... but the mortagage is like $1,000 a month avg according to the real estate agent. It's next to a road which many big trucks driving by( had afew accident last year) and close to the industrial park, the location is okay, but a little bit intimitating.

It's all about the area. In my area the condo market stinks. I know several people with modular homes and they are very happy.

Personally, I'd much rather have a modular home than a condo.

Modular homes today, unlike mobile homes, do retain their value. Over the last 10 years they have made great strides in the way they are put together and once in place, are very much like "real" homes. I have seen some beautiful ones that you wouldn't even know were modular. Unfortunately, the end costs of this can be just as expensive as buying yourself a small modest house.

Nicespringgirl, you are going to have to factor in not just the cost of the modular & the land, but the "hidden" costs as well. You have the cost of digging & building the foundation. Can you hook into the public sewer & water system or will you have to put in a septic system and well system? What will be the cost of those? You have to figure out what heating system you are going to use, electric installation & hook up, Hot water heater,. You need to apply for permits from the local municipalities which also cost money, and of course, the cost of delivery & installation of the modular homes themselves. You need to do more research as to what the actual end cost will be before you make the decision as to whether you can afford this or not. I would suggest that you go into your town's planning, zoning, & development office and ask them if they can help you figure out the unseen costs in a project such as yours. If your town does not have that kind of office, the town clerk may be able to help you. You also might want to go into your bank and speak with a mortgage/construction loan officer. I am sure they will have additional information for you to read that comes with their giving people construction loans. You could also stop by a Barnes & Nobles or Borderbooks. I am pretty certain they carry work books that give you a check list of all the costs you must consider prior to making the decision to build. And of course, there is always the wonderful public library system in which you can do some research to see what they have available regarding construction costs & loans.

I'd go with the modular home. They are built solid, look very nice, hold their valule fairly well. Better made than a mobile home. Around here condos are plenty - and not selling well. Too much like an apartment.

Which ever you decide, congratulations on making the step to ownership. You're smart to make this step now, weighing all options. Good luck to you.

Nothing wrong with a good well made modular home, We have 1000's in our area and they do very well.

The issue of buying a new one on the lot, is that they often do not hold their value over the first few years, But if you are looking at a used one already on land, most likely you can get a farily good deal. You also want to check the insurance price, as it may be higher than a standard home.

Quote:

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Originally Posted by RubyPitbull

Modular homes today, unlike mobile homes, do retain their value. Over the last 10 years they have made great strides in the way they are put together and once in place, are very much like "real" homes. I have seen some beautiful ones that you wouldn't even know were modular. Unfortunately, the end costs of this can be just as expensive as buying yourself a small modest house.

Nicespringgirl, you are going to have to factor in not just the cost of the modular & the land, but the "hidden" costs as well. You have the cost of digging & building the foundation. Can you hook into the public sewer & water system or will you have to put in a septic system and well system? What will be the cost of those? You have to figure out what heating system you are going to use, electric installation & hook up, Hot water heater,... You need to apply for permits from the local municipalities which also cost money, and of course, the cost of delivery & installation of the modular homes themselves. You need to do more research as to what the actual end cost will be before you make the decision as to whether you can afford this or not. I would suggest that you go into your town's planning, zoning, & development office and ask them if they can help you figure out the unseen costs in a project such as yours. If your town does not have that kind of office, the town clerk may be able to help you. You also might want to go into your bank and speak with a mortgage/construction loan officer. I am sure they will have additional information for you to read that comes with their giving people construction loans. You could also stop by a Barnes & Nobles or Borderbooks. I am pretty certain they carry work books that give you a check list of all the costs you must consider prior to making the decision to build. And of course, there is always the wonderful public library system in which you can do some research to see what they have available regarding construction costs & loans.

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Thank you so much!! I really want to know more about anything I need to consider before I make the decision. You nailed it! :)

Go ahead with purchasing and having a modular home your own at so young an age. Time spent to decide about it is not worthwhile.
I do hope these modular homes fetch good resale value even if you want to sell it off.
The price wise, the cost $33.600 is quite affordable, I believe. You being a financial analyst you I hope will be able to manage the purchase well.

Congratulations! All the Best!

If I ever could afford a house of my own I would love one of these but don't know where you are allowed to build them with the building codes the way they are.

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go modular, and don't worry about resale value. The money you'll save from not over-extending yourself will MORE than compensate for any "value" that you may have lost. This is the same thing that I advise people to do when they are purchasing a new car, or other perceived item of need. Folks will buy a car that is $30K, but they only make between $40-60K themselves. AND they'll stretch out payments *forever*. That's not how you get ahead, and why you see this mortgage crisis, credit crunch, and suv owners staying in their houses because of the gas prices.

this is not just a home discussion, but a financial discussion and you seem to be asking the right questions.

excellent choice, stay on course with your wise thinking!

The one advantage of a factory or manufactured home is that you can have it built stronger and sometimes better than a stick built home. Manufactured homes (m/h) that have a total square footage of 1,200 feet when put onto an approved crawlspace or full basement become "real estate" and are tied into the land. They do appreciate in value just like a regular home.

To get a good idea of just what your dream home will cost may I suggest that you go and visit a m/h model sales center and talk with the salesperson about your needs. The home is sometimes the cheapest part of the whole deal, believe it or not. You can customize the inside and outside of your home any way you wish with all sorts of options - some even have wood burning or gas fireplaces in them now. They can come in a variety of widths as well - some up to 30' wide by 80' long. Some are two story also.

If you figure the home was built to withstand the rigors of a 60 MPH highway trip to get there and over roads that are not smooth - just how well built is it? Very well built. The home is also inspected for the plumbing, electrical, duct work, etc. and not just "county inspected" either. The homes have much better and thicker insulation as well.

The real costs are the septic (if you need one) and a well dug (if you need one). Basements are in the $20K range, crawlspaces run about $3K in comparison. The utilities hooks are not cheap either.

The advantage of putting the home on real estate means that you can get a for real home mortgage on both the land and the home at longer and better rates.