Is Mobile home community (55 and over) a good place to retire?

[huusom]

Hi All:

I'm looking to buy into a 55 and over residence owned mobile home community in Orange County, CA.

Is this a good idea?

Thanks

[haha]

Quote:

Originally Posted by huusom Hi All: I'm looking to buy into a 55 and over residence owned mobile home community in Orange County, CA. Is this a good idea? Thanks

I little hard to know from the information you gave. For starters, how about how much it costs, what the monthly or annual outlays will be over and above the lot purchase financing, how close is it to the beach, which town or beach, on a bus line or not, etc, etc.

Ha

[huusom]

Quote:

Originally Posted by haha I little hard to know from the information you gave. For starters, how about how much it costs, what the monthly or annual outlays will be over and above the lot purchase financing, how close is it to the beach, which town or beach, on a bus line or not, etc, etc. Ha

The avarage price is about 250k and there is no space rent since this is a residence owned park. The monthly association fee is around $160. I just want to know the pros and cons of leaving in a manufactured home vs traditional home.

Thanks

[Martha]

The issue would be depreciation. In the 1970s my inlaws moved to a brand new manufactured home community in Florida full of nice brand new doublewides. (Not residents owned). Twenty five years later when my FIL died the home was worth about $7000.

So how much of the value is in the spot itself? I think this is the key question.

Is the home going to have to be replaced or substantially repaired in 5 years, 10 years, 25 years? How old is the park and how old are the homes in the park. Are they all around the same vintage?

[Rich_by_the_Bay]

Manufactured homes have a nasty habit of blowing away in storms.

I'm surprised at a $250k price tag, but I guess it's location-location-location.

[Brat]

Orange County has been hard hit by the housing bubble. Assuming that you intend to live in that vicinity I would compare it to other housing options that would meet your needs. As others have commented mobile homes don't hold up well, the value of the structure will depreciate much faster than other housing. The advantage might be that the living space will be greater than if you spent the same amount on a condo, for example. Were I you I would look at other 55+ developments in your target area for comparison. Assume that the mobile home structure will be worth half your investment in 10 years (my gut estimate) and that neither land nor other housing will appreciate during that time and you need to sell. Would you be content with the result

FYI, my aunt and mother-in-law both bought mobile homes. They needed to sell when they could no longer live safely alone after 7-10 years. They not only lost much of their investment but what they did receive didn't help much with their subsequent housing costs. The attraction of the mobile home for each of them is that it was big enough to hold all their stuff... they couldn't down-size. Of course, when they needed to move the kid's down-sized them. Lesson: do not be beholden to 'stuff'.

[huusom]

Quote:

Originally Posted by Rich_in_Tampa Manufactured homes have a nasty habit of blowing away in storms. I'm surprised at a $250k price tag, but I guess it's location-location-location.

Actually, the $250K is at the lower end of this community price ranges (Check out The Groves in Irvine, CA). This community is located in a very good location. The typical mobile home in OC is around 80K if you don't own the land. I guess this one is not typical since the land value is so high here in CA. When you purchase the unit, you must also purchase the shares of the land. This is why it's more expensive. I'm not so sure about depreciation since the community is about 30 years old and some ot the units are selling for in the $300K.

[Orchidflower]

My friend in Santa Cruz, Ca., just bought a used mobile home for $110K and feels she got a deal out there. To me--and this is just my opinion--not worth it at all unless you have some real reason to stay in an area that charges $250K for a mobile home (like my friend has one child, a daughter, living there, too). They just depreciate too much and don't escalate in value = a losing proposition to me. But that's just my opinion.

[Brat]

Have you researched recent selling prices? There is a big difference between asking and selling prices.

You really should read the CC & R's, financial statement, a copy of the last year's worth of Board Minutes, letters to the HOA as well as last Reserve Study.

There are really two different kinds of manufactured homes, one built to HUD standards, the other to stick-built code. The latter is very good, the former not so hot. If the home you are considering is 30 years old and built to HUD code you are very close to it's lifespan. I would engage an anal-retentive home inspector I SELECTED to give me a condition report before accepting the property.

Also, talk to your insurance provider to see what they have to say about its insurability.

[heyduke]

for that much money I would get a mobile home with wheels (rv) - truly mobile...


ust my two cents...

[Rich_by_the_Bay]

Quote:

Originally Posted by heyduke for that much money I would get a mobile home with wheels (rv) - truly mobile...

For the record:

• Mobile Home = manufactured home = no vehicle, delivered to a site on a commercial truck.
• Motor Home = vehicle chassis with living amenities built on top
• Class A = bus-like
• Class B = conversion van-like, from small to moderate size
• Class C = built on truck chassis, cockpit-like driving area, usually coach hangs over cockpit and has a bed.
• Travel trailer = no chassis, towed
• 5th Wheel = Travel trailer with hitch attaching to bed of a towing pickup truck, can be small to large, no motor
• RV = all the above except mobile home.

I think that covers the usual types, though people sometimes use terms differently.

It's true that for less than $250k you could buy a very nice 5th wheel or class A and even an owned lot, and have a home plus the ability to move whenever you wanted to. But each to his/her own.

[audreyh1]

Yeah, my cousins still refer to our Class A diesel motorhome as "your mobile home".

Whatever!

Audrey

[Rich_by_the_Bay]

Quote:

Originally Posted by audreyh1 Yeah, my cousins still refer to our Class A diesel motorhome as "your mobile home".

Yep. We just call our motorhome "the bus."

[Zero]

One important aspect of the classic mobile home or "glorified" doublewide trailer is how it is it anchored to a foundation. I've seen some aunt/uncle East coast relatives with several varieties and the quality is highly variable. But I did notice that over the years the ones on very nice permanent cement/concrete foundations held up substantially better.

[Brat]

The issue is more than how it is anchored, it is the size of the studs, the type of plumbing.. just to start. I view a HUD code manufactured home as 'disposable housing'.

[mountaintosea]

I can understand the reason you want to live there. I go to Irvine on the weekends to watch foreign/independent films and for the wonderful weather. Irvine is quite pricey. I don't know anything about manufactured homes only that Irvine is extremely desirable. Clean city, little crime, beautiful landscaping, John Wayne airport close by and theater and arts. Good restaurants. Close to the ocean. I would say you are definitely paying for the locale. Have you checked out Lido Isle near the Newport peninsula? They have manufactured homes on the water for sale. It seemed really quiet although I don't know about the summer months. Good luck!

[Martha]

Quote:

Originally Posted by audreyh1 Yeah, my cousins still refer to our Class A diesel motorhome as "your mobile home". Whatever! Audrey

Quote:

Originally Posted by Rich_in_Tampa Yep. We just call our motorhome "the bus."

I thought the proper term was "the rig."

[audreyh1]

We often refer to ours as "the rig" or "our coach". I suppose the "coach" part comes from its brand name - Alpine Coach.

Audrey

[REWahoo]

I call ours "the motorhome". DW calls it "the camper". I suppose it's all a matter of perspective...

[Orchidflower]

My friend is overlooking the ocean as her 55+ park sits high on a cliff in a safe area of Santa Cruz, California. Still not worth it to me.
On the other hand, Mathew McCaughnehey lived in a moveable mobile park in Malibu. Now THAT might be worth it...haha!