Often apartments for rent may seem like the cheaper or more affordable option as opposed to buying a traditional stick-built home. That said, in many locations throughout the country, rental rates are higher than monthly mortgage payments on comparable (or even bigger) properties. Nevertheless, many people still prefer to rent a place, particularly because of the flexibility renting provides, which is understandable. However, that still does not negate the fact that there are a few undeniable advantages associated with mobile home living, especially if you are looking at mobile homes for sale.
In order to help you make an informed decision about whether you should rent an apartment or buy a manufactured/mobile home, here is a quick overview of the most important differences between these two alternatives, which should help you answer the question, is owning a mobile home cheaper than renting an apartment?
Purchasing a Manufactured or Mobile Home Is Usually Better Than Renting
As briefly touched upon above, most two-bedroom apartments can easily cost you over $1000 a month, And this is on the lower end. Moreover, this price typically does not include any of the utilities, pet rent, non-refundable deposits, carport fees, and so on. Yet, a mortgage on a manufactured or mobile home usually costs less than $1000 and offers more square footage than a two-bedroom apartment. Of course, you still have to factor in monthly expenses like utilities and lot rent if you decide to purchase a mobile or manufactured residence inside a mobile community or park. But when the dust settles, you are likely still coming out ahead when you opt to buy a manufactured residence For several reasons.
Mobile and Manufactured Homes Situated On Land Appreciate Like Other Houses
For starters, if you decide to purchase a manufactured or mobile home on land, then just like traditional or stick-built homes, they appreciate in value. Thus, just like buying a home provides you with equity, so does the purchase of a mobile residence. In this particular instance, purchasing a mobile home becomes an investment, one with a mortgage payment that is still likely less than that of a two-bedroom apartment.
Appreciation Is Just The Beginning
Along those same lines, you can build home equity and even potentially take advantage of possible tax breaks as a homeowner. The nice thing here is you did not have to purchase a bigger home in order to build said equity. Often there is this misconception that in order to truly build home equity, you need to buy a large house. But with a large property comes a large mortgage payment and an increase in maintenance and repair costs. As a result, you will likely fare much better with a mobile or manufactured residence in your portfolio.
Manufactured or Mobile Residences Can Be Financed
What’s more, manufactured homes can be financed. Most manufactured home communities offer in-house financing, which means you can get a great deal on an affordable luxury mobile residence. Plus, more and more lenders are offering programs that cater to mobile home living. Thus, you do not have to scramble to come up with the money to purchase a home. And as briefly mentioned, manufactured residences are more affordable than traditional houses, which means your mortgage payment could easily be only a few hundred bucks a month. If you secure a fixed-rate mortgage, you will have the same low payments for the foreseeable future, unlike apartment rental rates that are constantly going up and changing.
Mobile and Manufactured Homes Can Be In Nice Neighborhoods
Location is also a big factor when looking for the most affordable living situation. With a mobile or manufactured home, you can choose a home situated on property, rent a lot in a mobile community, or be a part of an upscale neighborhood—all with paying high rental rates to be there. Plus, many of the mobile home communities offer a wealth of suburban style amenities that you simply will not find in an apartment community, and if you do by chance, then they will definitely be factored into your overall rent.
That said, apartment living is not all bad. It can be a great solution for someone looking to relocate to a particular city for a few months and alleviate some of the responsibilities that come with homeownership. Thus, it all really depends on your situation and your housing budget more so than anything.
Manufactured Homes Are Great First Homes
Of course, if you are looking to start your home ownership journey, then a mobile or manufactured residence can help you do that. You can enjoy all the perks and firsts that come with a real home. So, if you are thinking about adding on to your family, comfortably working from home, or just want to feel like you have a real place to call your own, then a mobile home can offer you that—all while providing you more bang for your buck. At the end of the day, modern mobile homes are truly quality, cost-effective alternatives to traditional or stick built homes; that is an indisputable fact.
But when you weigh the pros and cons of mobile home living versus apartment living, you need to ask yourself a few crucial questions. For instance, you should ask yourself, how much space do I need, what can I afford, what are my long-term goals, and even am I ready to be a homeowner, or rather does that appeal to me? Once you can answer these questions, you will likely know which space is right for you and which one makes more sense financially.
Benefits to Mobile or Manufactured Home Living
In general, there are some clear advantages to purchasing a mobile or manufactured residence, and they include the following:
- Lower price
- Smaller mortgage loan
- Lower monthly costs
- Less maintenance
- Less financial risk
- Better than renting
Benefits of Apartment Living
But be that as it may, there is still no denying that renting or leasing an apartment has its advantages that are worth considering, including:
- Easy Maintenance
- Financial Savings
- Increased Safety
- Great Amenities
- Short-Term Options
- Great Community
- An Opportunity to Save
The Clear Winner
By now, it should be abundantly clear that the best option for you financially could be either living situation. That said, it may seem like all signs point to mobile home living over apartment living. But the truth is that if you are looking for the long-term, inexpensive option, then you should be looking at purchasing a mobile or manufactured residence. However, if mobile home living does not meet your needs, then it might be cheaper to live in an apartment. For example, if a studio apartment is all you need because you are always traveling or on the road, then purchasing a home that you are not around to maintain will likely end up costing you more when it is all said and done.
Ultimately, these are just a few things to consider when you are comparing mobile home living and apartment living. As you can see, what is right for one person financially might not be suitable for the next. Therefore, only you can truly answer the question— is owning a mobile home cheaper than renting an apartment? Living in an apartment could make your life easier and provide a level of freedom/flexibility that you currently need. Alternatively, purchasing a mobile or manufactured residence might be what you and your family need. Plus, mobile home living can very well benefit you financially down the road.