In this article, we will answer the following question: Is it bad to live in a mobile home? We will discuss investment opportunities, advantages and disadvantages of buying, renting and living in a mobile home.
Is it bad to live in a mobile home?
It is not necessarily bad to live in a mobile home, but it does have its disadvantages. Buying or investing in a mobile home is often the consequence of one of the following three objectives:
- Buy a mobile home to have fun regardless of the annual rental rates;
- Buy a mobile home to combine pleasure and reimbursement of expenses;
- Invest in a mobile home for profitability.
Obviously, while there are advantages to buying a mobile home, there are also disadvantages that you should be aware of so as not to be surprised.
- Carefully study the campsite contract: I have said it over and over again in other articles, the “careful” study of the contract must be done and verified with the campsite manager. This point is very important and if I have decided to “classify” it as a disadvantage today, it is just that sometimes it takes a little while to do.
BUT it doesn’t matter, you have to seriously study this piece of paper which will guarantee good relations with the campsite for years to come. This study, this research, therefore, correlates with your initial objective and may take a little time.
- You can’t really choose the campsite: This is a special feature of the world of mobile homes and campsites. Depending on the goals that we set for ourselves, we will not necessarily buy a mobile home on the campsite as we thought.
Remember! Only the contract has priority, it must be adapted to what you want to do. If this is not sufficiently the case, we have to look elsewhere even if the campsite seems nice on the surface. Aesthetics and well-being can, in some cases, come second.
This point, therefore, amounts to saying that we first choose a suitable contract, then a campsite and then a mobile home. You have to be very careful to follow this order, which can be a major inconvenience for some people.
- You are a tenant of the land and owner of the mobile home: By the very definition of leisure camping, we are the owner of a property: the mobile home, but also the tenant of the land. This means a few different constraints than when you are a full owner of real estate and the land.
We must be aware of this to understand that we are subject to internal regulations. For some people, this is a lack of freedom and they feel like they are losing control hence the point of being comfortable with the concept.
- The lifespan of a mobile home is not that of an apartment: Yes! It’s true, a mobile home will not last as long as an apartment. You have to integrate this notion and understand that you will never make a deal by reselling your mobile home. If you don’t agree with this notion, never buy a mobile home!
It is difficult to speak of a discount because many factors affect the price of a mobile home. If someone talks to you about mobile home argus, never trust what you are told.
Your mobile home will be worth “0” dollars when you part with it! Go from this principle and you will not have any bad surprises. It will always be better to use the rental of your mobile home than to try to resell it.
The lifespan fluctuates between 20 and 30 years. Some English models age very well since they were originally designed to be main residences.
But is buying and living in a mobile home a good investment?
Investing in a mobile home has several advantages. First of all, buying or renting a mobile home is inexpensive.
Second, an attractive tax system. By buying a mobile home, you are not subject to property tax or housing tax. The only tax you will have to pay is the tourist tax (between 100 and 200 $ per year).
Furthermore, as a reminder, a mobile home is movable property (and not real estate), so there are no notary fees.
Third, strong rental demand! Like us, you were probably unaware of it, but a well-equipped mobile home, in a 4-star campsite, in a highly touristic area, can be rented from February to November!
Thus, the rental demand for high-end mobile home exists throughout the year. With weeks reaching massive prices in the middle of August, up to over $1,200 …
A determining factor: the choice of campsite
One particular point should attract the vigilance of the new investor: it is the choice of camping. Indeed, not all campsites are created equal. And some practice abusive conditions, not to say illegal.
Overall, remember that you need a campsite:
- which allows you to rent by yourself, free of charge,
- whose opening dates are sufficiently extended,
- with a good level of equipment,
- which does not require you to change Mobile Home regularly.
Again, be careful. You own your mobile home, but not the land. You are the tenant of the site via a lease, which is usually annual (the lease includes your consumption of water, electricity and maintenance of the plot).
However, dishonest campsites make the renewal of your lease conditional on the purchase of a new mobile home, while yours may only be 8 or 10 years old.
However, well-maintained mobile home has a lifespan of 20 years, or even more with a few refreshments, and this lifespan is a determining element for the success of your investment. Because it is on the length that you will get a big profit.
Investing in a mobile home: is it a profitable investment?
Interested in investing in a mobile home? Here are some figures:
- Take a second-hand mobile home (5 years old) with 3 bedrooms, which you equip in “high-end” standing, installed in a 4-star campsite.
- You rent your plot for around $4,000 per year.
- This mobile home is bought for $25,000. You recover 20% VAT on this purchase, i.e. $5,000, so your mobile home costs $20,000.
- By starting from $2,500 in profits per year, you have reimbursed your mobile home in 8 years ($2,500 * 8 = $20,000).
To compensate for the inevitable hazards, and the few refreshments, necessary, a few thousand dollars are subtracted, which gives between $10,000 and $15,000 in potential profits over the duration of the operation.
I have listed the undeniable advantages of owning a mobile home. Clearly, there are certain benefits that alone can achieve goals that you set for yourself or your family. Obviously, buying a mobile home also comes with a few drawbacks that you should be aware of.
I realize more and more that many buy for pleasure and investment and they are very happy with the concept. What do you think? I hope this article has given you some useful information, but if you have a different opinion, feel free to leave a comment!
FAQ on Is it bad to live in a mobile home?
Is it good to buy a mobile home?
The advantage of investing in a mobile home is that you can buy for a relatively small amount compared to real estate in general. Indeed, it is possible to buy a second-hand model for $12,000, the price of a small car!
Why not buy a mobile home?
The biggest disadvantage of the mobile home is that it depreciates, it would be hard to resell it and costly to maintain, especially during winter.
What is the difference between a bungalow and a mobile home?
The difference between a mobile home and a bungalow is the structure of the facades. The bungalow is in waterproof canvas while the mobile home is in insulated PVC panels.