The housing and affordability crises seem to get a lot of attention in the news these days; especially, if you live in California. But what if I told you that you could live in Orange County for less than $2,000 a month. Sound crazy? What if I told you that you would also own that same home for $50,000 or less? Well, it’s not that hard, believe it or not. Paying rent versus owning a mobile home is a conversation more people should be having.
According to Rent Cafe, the average price for an 821 sq ft apartment is $2,031. Keep in mind that is the average. Over 52% of homes in Brea and Orange County are at least $2,000 or more. And prices are only expected to rise over the coming years as the California real estate market continues to reach all-time highs. According to Zillow, housing in Brea is up 20% from last year alone, pushing the average housing price to $926,000.
So What’s the Alternative… Manufactured and Mobile Homes
Case Study
Today, we will compare your options for renting a home or apartment vs. owning a manufactured home. The manufactured home we will be showing is currently listed for $50,000 and is located at Hollydale Estates, which offers a pool, clubhouse, and serene views. This two-bedroom two bath house has 1344 sqft, an enclosed space, deck, and a backyard. The current lot rent for this space is only $1,650.
Now let’s compare that to houses available for rent in the same area…
Houses for Rent
This house is currently for rent and has a lot of nice and modern finishes. Compared to the manufactured home, it would only cost $1,200 more a month and is 300 sq ft less.
Or…
Okay, this one is bigger, but it’s almost $2,000 more than a mobile home you could own.
Apartments for Rent
Apartments offer better amenities but at a cost
A 2 bedroom two bathroom here is at least $3,000 and goes up past $3,200, which is more than double lot rent, and all are at least 200 sq ft smaller.
Final Thought
Think about this; if you could save an extra $1,000/month over the next five years, you could have $60,000 to put towards a new home. Also, consider that when it’s time to sell the mobile home you live in (lifespan of mobile home), you will still get back some of the money you purchased it with, maybe more. This could be your first step to building wealth.
Paying rent versus owning a mobile home has become something recently graduating students are trying. Let us know your thoughts.
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