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Dave Says: Mobile Homes Are Bad Investments

Dear Dave,

I’ve heard you tell people not to buy mobile homes. We bought one when we moved out of our apartment, and it’s been much cheaper for us. Why do you feel this way?

Debbie

Dear Debbie,

It’s simple. Mobile homes go down in value. When you buy a house, it goes up in value in the long run. From a financial standpoint, mathematically, when you buy a mobile home, you’re buying a very large car in which to live.

Now, I’m not necessarily against manufactured homes. But the phrase “manufactured home” can mean different things to different people. My test goes something like this: If it’s a type of housing that doesn’t look like it had the wheels yanked off, then it will probably go up in value over the years.

There’s nothing wrong with renting an apartment for a while. When you pay out rent, that’s all you’re losing in the deal. But when you buy a mobile home, you’re losing out with the payments and you’re losing money every day as the thing goes down in value.

That’s why I tell people not to buy mobile homes!

—Dave

For more financial help, please visit daveramsey.com.

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