Mobile Homes Are Bad Investments

Debbie wants to know why Dave tells people not to buy mobile homes. Her apartment is more expensive than the mobile home she had before. Dave explains that it's because mobile homes go down in value.

QUESTION: Debbie in New York from My Total Money Makeover wants to know why Dave tells people not to buy mobile homes. Her apartment is more expensive than the mobile home she had before. Dave explains that it’s because mobile homes go down in value.

ANSWER: It’s real simple. When you’re buying a mobile home, they go down in value. From a financial standpoint, mathematically, you’re buying a car that you sleep in—a very large car that you sleep in. When you buy a home, they go up in value. I’m not against manufactured housing, which means a whole lot of different things when you say that phrase. But if it’s the type of housing that’s done in some way that the consumer buying it really doesn’t detect that they took the wheels off of it, then it usually will go up in value. If it looks like a trailer, smells like a trailer, it’s going to go down in value. That’s why I’m against it. Before, when you were paying out X number of dollars in rent, that’s all you were losing. Now you’re paying out X number of dollars in rent and you’re losing money every day on the ownership of the thing, so you’ve done double dumb now. That’s why I tell people not to buy trailers.

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