A mobile house is made in a factory and then moved to the allocated area on leased land or privately owned property. These houses are made with one intention in mind- mobility, the ability to move the house from one place to another.
Recently, the concept of a mobile house has been floating around a lot, making it a popular option for many. The house not only provides mobility, it’s a cheaper alternative to traditional houses. But even with lower costs, there are some hidden charges you need to be aware of if you are pondering whether to buy a mobile home. Let’s break down these hidden charges so you can be sure of your decisions.
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Hidden Costs of Buying a Mobile Home
1. Land Fees: Rent or Purchase
When you purchase a mobile home, you need a place where you can set up the place, so you either buy land or rent a lot in a mobile home park with others. If you were to rent a lot, you have to consider the rent, which depends on the location, and then consider the maintenance charges for the amenities provided at the place. These can cost from $300-$1000.
On the other hand, if you were to purchase land to place your mobile home, you would require a larger investment. Along with this, you also face some additional charges like taxes, legal fees, and upkeep. Before purchasing a mobile home, consider whether you can handle these ongoing expenses.
2. Delivery and Installation Charges
A mobile home is not just a fully functional home that the company drops at the location; there’s much more to it. First of all, the company charges for the delivery depending on the distance, it can easily reach up to $1000.
After the delivery, you cannot just use the house; it needs to be properly connected to utilities, needs leveling, and meets local permit requirements. The installation charges can easily reach $5000 or more to make the house functional.
3. Permits and Inspections
Local governments typically require permits specific to establishing the mobile home, mainly when it’s an area that has not yet been established. There could also be mandatory plumbing, electrical, or structural security inspections. The inspection fees vary by location but could add hundreds of dollars over the original cost. If your project doesn’t fit the standards, you may have to spend more money to make the necessary changes.
4. Insurance Costs
The insurance premium for a mobile house is more expensive than that for traditional homes because of its mobile and prone nature. These homes are more at risk of being damaged by storms and other accidents, making the insurance the most expensive.
The Insurance policies typically protect against theft, fire, and storm damage. However, the insurance premium is based on the size of the house, its age, and its location. If you plan to set up your house in a region that is more vulnerable to natural disasters such as floods or hurricanes, the premium for this insurance will be more expensive.
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5. Maintenance and Repairs
A mobile house may be more affordable than a traditional one, and its durability is why. The materials used to build mobile houses are usually much cheaper and less long-lasting, so you must be quickly prepared for maintenance.
Plumbing and electrical systems in these houses tend to give up faster, which means more repair. A mobile house may be cheaper, but in the long run, you have to be prepared to take care of this additional maintenance cost for a long time.
6. Utility Bills
With mobile houses being what they are, they tend to be less energy-efficient than traditional houses, which leads to higher heating and cooling bills. Moreover, poor house maintenance, like loose windows, will increase costs by letting the energy escape.
Additionally, based on where you decide to place your mobile house, the park management might bill your water, sewage, and other facilities separately. It would be best if you choose a place based on your financial stability.
7. Depreciation and Resale Value
With mobile houses being what they are, they are considered into the class of vehicle, which means they start losing value as soon as they leave the company grounds. This means mobile houses will not rise in value with time like a traditional house would; the longer you own it, the more its value depreciates.
And if you were planning to sell the mobile home after some time, it’s more likely that you will have to sell the place cheaply and at a loss because of the low demand for such houses.
8. Financing Challenges
If you plan to purchase a mobile home on loan, you might not be as lucky. As mobile homes are considered vehicles, they are not approved for home loans. You have to go for a personal loan with a higher interest rate and a shorter loan period. And the end price you pay for the mobile home is not worth it because the resale value of these houses will depreciate a lot.
9. Park Fees and Rules
If you decide to stay at a mobile home park, you must adhere to the park rules and pay a monthly fee. Many parks charge for their amenities, adding to the monthly maintenance charges. Additionally, you also have to follow the rules posted by the park management about pets or noise levels and exterior modifications to your home. If you violate any of their rules, you will likely be asked to leave.
10. Taxes and Legal Fees
If you own the land where you park your home, you must pay taxes annually. Some states consider a mobile home as real estate property because of its residential nature, meaning the tax rules are similar to the traditional ones. In other cases, they are taxed as personal property. When selling or buying a mobile house, you may be required to cover legal costs for title transfers, notary services, or closing fees.
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Frequently Asked Questions (FAQs)
What are typical mobile home insurance premiums?
Insurance premiums for mobile homes typically range from $300 to $1000 based on the age, location, and insurance plan.
How much do lot rents usually cost?
Rent for mobile home parking can vary between $300 to $1000 depending on the amenities provided by the place.
Are mobile homes a good investment in the long term?
The depreciative nature of mobile homes will lead to a very low selling cost for the house in the future, which means you will gain no value on the house. So, no, mobile houses aren’t a good investment in the long term.
Can I move my mobile home whenever I want?
No, moving mobile houses need permanent and professional help, so you can’t move however you wish.
Final Statement
While mobile homes are an affordable option rather than buying a house, buyers must be aware of the hidden costs. From the setup and maintenance to insurance and park fees and maintenance, the costs add up quickly. By understanding their financial obligations before purchasing, buyers can make more informed choices and avoid the stress that comes with unexpected expenses.
So, if you are considering investing in a mobile for residential or vacation spots, make sure you understand and consider these factors. Are these costs something that you can handle? Is this mobile home a short-term thing, or do you plan to use it long-term? Make sure you do your research and decide wisely.