The Mobile Home Myth
Trailers go down in value rapidly
Mobile homes, or trailers, are a bad investment because they go down in value rapidly. It's better to rent a cheap place and save money for a down payment on a real house.
- Mobile homes go down in value rapidly
- It's better to rent a cheap place and save money for a down payment on a real house
- Mobile homes are not a good investment
- Understand the risks of mobile homesLearn about the rapid depreciation of mobile homesPro tipRent a cheap place insteadWarningMobile homes are a bad investment
- Save money for a down payment on a real houseSave money for a down payment on a real house instead of investing in a mobile homePro tipDiversify your portfolioWarningMobile homes are a bad investment
The $150,000 double-wide example
A person buys a $150,000 double-wide mobile home. In five years, the mobile home is worth $100,000, and the person still owes $132,000 on the loan.
OutcomeThe person realizes that they made a bad investment and wishes they had rented a cheap place instead.
The Ron example
Ron buys a small farm and a used $3,000 trailer. He saves money and builds a paid-for $250,000 home in just a couple of years.
OutcomeRon realizes that he made a good investment and is happy with his decision.
Investing in mobile homes
Mobile homes go down in value rapidly, making them a bad investment.
Not understanding the depreciation
Many people don't understand the rapid depreciation of mobile homes and end up losing money.
Not saving for a down payment on a real house
It's better to save money for a down payment on a real house instead of investing in a mobile home.
Dave Ramsey has seen many people get ripped off by mobile homes. He wants to warn others about the dangers of this investment.
Source · BOOK
The Total Money Makeover Updated and Expanded