Buy a house now? Or trailer now, house later?

Ya know there is some pretty smart people on your forum when you come to the forum to ask a question first ! Anyway, here's my current situation:

Live in a 1BR apt, $485/month everything included except for electricity. Pretty nice situation, except I feel I am starting to outgrow this thing now that my gf moved in. I have no debt other than the truck payment, which is $400/month but I pay extra. 12% going into the 401k.

Here is my current dilemme:

Option A) My parents just finished building a house, so their late 70s model single-wide trailer is now up for sale. It's about 800sf and has been remodeled minus the bedroom. It's about 5 miles closer to work, out of traffic's way, and closer to EVERYONE. Like literally, closer to friends and family. I can buy this jewel for $5k right now, pay $225 lot rent which covers water, sewer, trash. Live there for a couple years, save up some more, sell it (while making a profit) and put a huge downpayment on a house.

Option B) Stay where I'm at, save up for another year or so or less, and buy a house. I could easily buy a house right now, but there isn't much out there at the current moment and I want to put about 20% down on it.

I think both options have their own advantages/disadvantages. I like being able to have some more room and privacy for a couple years by moving into the trailer. But the disdvantage is I'll have to move 2 times in the next few years and have to sell the trailer at some point. So, what do you gurus think?!?!

 

I would opt for option b

 

House. Longevity and interest rates.

 

That's what driving me towards option buying the trailer, continue to save and pay off my truck.

The rates right now are awesome, but I heard 5 years ago the rates would be high in no time. They're are still at rock bottom. Not saying that couldn't change in the next 1-2 years though, owning a house with a garage and yard sounds so enticing right now.

 

Write your truck off in your house mortgage!

 

The housing market is the lowest you'll probably ever see in your lifetime

 

I would buy a house because it's not a trailer

 

Please elaborate, I am not educated on how all this works.

Agreed!!!

In WV, trailers are golden! Not only is it a house, it's one you can pack the kids up and move it somewhere else!!!

 

Well y'all think I'm going to go with the trailer now, save some more, house later option. There just isn't much in the market here right now, it's kinda stagnant. I'm tired of throwing away $6k a year in rent for a 1BR apt when I could be throwing $2600 a year in lot rent, own the trailer, and be able to sell it when I decide to buy a house and at least break even, if not make money on it. My true ambition is to save for another 2 years and put a hefty, and I mean hefty as in $30-40k down on a piece of land/house.

 

if you can save more by getting in the trailer do it, nothing wrong with a trailer.

 

We will never see interest rates like this again!! Put your money into to something where you'll be building equity. Make an educated decision on a home though, research research research...

Good luck!

 

If you can do it now putting off the house is silly, interest rates are going to go up which is just going to make it harder to get into a house. You'll end up with less house for more.

 

House

 

Agreed, I honestly don't mind living in it at all. Comparing my parents' utility bills to what my overall cost of the apt is, I should be able to bank $100-$150 extra a month due to lower bills, unless we have a very hot summer or cold winter month then it might be a break even ordeal. The only extra cost I'll have is maintenance, where right now I don't pay if something breaks at the apt, I will at the trailer.

Like I said, I can easily break even or make money when I come to sell this thing too. Plus the convenice, saved gas money being closer to work and family is worth it IMO.

 

Ill never understand renting... My buddy has been renting for years... All that money being pissed away... And he pays 650/mon... That's a nice mortgage payment.

 

I know what you mean, I've rented for 3 years now. That's $18,000 gone I'll never see it again. Granted I haven't been in the position to buy a house though until now. I could settle for one that's out there now, but ya don't want to do that. So I'm taking the middle of both worlds, buying a trailer which cuts my rent down from $485 to $225 and will just look and see what I can find in about a year or so.

 

In your situation I would probably buy the trailer. I would not recommend a trailer for a long period, though. I made that mistake about 12 years ago. Despite the hype from the sellers and manufacturers, my experience is that trailers are not as well made as site built houses.

You seem to have your head screwed on straight. In the long run you will be better off avoiding debt as much as possible. This sounds like a wise step.

 

You won't regret money spent on your own house. Don't kick youself a few years from now for not doing it.

 

Buy Land. It's Not renewable And Its Running Out. I Would Say Do The Trailer Only If You Were Buying Land To Later Build On.

 

You will not make a profit selling the trailer in a couple of years. Mobile homes depreciate in value plus they are hard to sell. You may find yourself stuck with it rather than being able to sell it and move on to a house. I know this from experience. I bought one when I was 19 and was lucky to finally sell it about 10 years later. Longer than I wanted to live there and it wasn't for a profit. I would go with option B. Just my .02.