Renting vs. Buying a Modular Home for Senior Citizens in Jackson, Michigan
Should I rent or buy a modular home for my retirement? This is certainly an intimidating question for seniors. It is also a difficult topic to discuss but nevertheless we should present the pros and cons of renting and buying a modular home.
A modular home is considered to be the top alternative house once the home buyer cannot afford to build a stick built house but its price has been rising and financing is plummeting. You should not be wary since after all seniors can have a home less than $100,000 with mortgage better than anyone else. But nothing is ever that easy, is it? With homeownership comes responsibility, while renting may be relatively carefree.
Pros of Renting a Modular Home
While seemingly the same price or even more expensive than owning, one of the pros of renting a modular home is having a cheaper lifestyle. You will be paying a certain dollar amount each month only. This monthly payment is like the cost of your mortgage but it fortunately lower.
Additionally, when renting maintenance and repair is not your problem. You can notify your landlord about any breaks (such as toilet breaks), and he will be the one to call the resident plumber and get a free fix. There’s also a huge psychological freedom to renting. You are at least on 12-month lease agreement rather than the 30 year lockin. And there’s even a good chance you’ve got a month-to-month deal in place when renting a modular home.
Cons of Renting a Modular Home
The downside of renting a modular home is always associated with the word temporary. You cannot establish your own household if you rent a home. Renting is also synonymous with limited. Some of the landlords do not allow pets or repainting of the place. You are also not inclined to have a 30 years lock- in agreement and despite those payments you are not entitled for home equity or ownership, leaving you issues during your retirement.
Another con about renting a modular home is the high possibility of having an increase in rent. There are some level of rent control that is most likely not practiced well. Your rent can rise at some point due to, probably, economic issues. You might be paying more than your neighbor who is paying a fix mortgage.
Pros of Buying a Modular Home
Seniors buy a modular home because of home equity or home ownership advantage. In simple words, the home will become yours whether you pay in cash for the construction or you asked for the assistance of modular home financing for senior citizens. Interestingly, owning a home is a cheaper alternative than renting these days in many areas in the United States today because of the low interest rates. All you need is to research and find a place good for your retirement.
Owning a modular home is inexpensive compared to renting one. Mortgage payment cost lesser than monthly rent payment in most cases. You can pay at $2,000 for mortgage instead of $2,500 while renting a home. Home ownership also offers tax benefits to homeowners which is cost efficient in the long run.
Additionally, there are fewer restrictions and you can modify or customize your modular home following your preference. This significantly mean you can make your home’s worth higher over the years and turn it to be more attractive and energy efficient.
Cons of Buying a Modular Home
Having a number of disadvantages will always be part of buying property as well. In buying a modular home, the first constraint here is shelling out huge amount of money for mortgage downpayment or to start the construction process. As per FHA loan guidelines, seniors must pay at least 3.5% of the purchase price, which can be a hefty amount in higher-priced areas of the nation. Mortgage payments can also be higher than the rent in some areas in the United States so don’t be surprised if it comes at a premium. You also have to pay real estate taxes and insurance, which don’t stop once the mortgage is paid off.
One con about buying a modular home is the responsibility of fixing any faults in the house like the pipes and electrical wires. The cost of home maintenance and repair will be shouldered by your own pocket. This is unlikely when you rent a modular home where a smiling plumber solves problems with you plumbing system for free.
In case you still have question about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile you can check our modular home price sheets by signing up to our blog
