Realty Services - A Good Deal?: Verico Mortgage Options Ltd.

Mobile homes in trailer parks are properties we get calls on all the time. There are great deals on some mobiles in the park that seem too good to be true, are they? Yes, the truth is mobile homes that are priced very cheaply all have one thing in common, they are old. Mobile homes, unlike houses or condos, can only be financed until they are 40 years old, so if you want to buy a trailer that is 35 years old, you can only finance it for 5 years. This is the reason they are so cheap, they are not financeable. Keep this in mind if you plan to buy an older mobile home, as you will need to sell it at some point.
Mobile homes on their own land are usually cheaper than a house, is that a risky scenario as well? Not as much. Mobiles on their own land are much easier to finance as you are actually financing land not just a trailer (which can be moved). As long as the trailer is on a foundation, and is deregistered it is likely not a bad buy. We can finance these at wholesale rates (unlike in parks where they are done at a much higher rate), with 35 year amortization's, and there are no lot rents. All these factors can make the trailer on its own land cheaper on a monthly basis than a trailer in a park that is priced much lower.
When you purchase a home on leased land, you can usually shave a good percentage off the purchase price, but is this a good buy? Maybe. There are several different kinds of leases, pre paid, 99 year lease, private leases, government or city leases etc, and they are all looked at a little differently by the institution doing the financing for the property. Generally government or city leases are the most accepted with private leases being the least. Leased land on the whole is difficult to finance and it will always affect the amount you will be able to get for the property when you turn around and sell it, but as long as you know this going in you should be okay (again depending on the lease).
Condos on the west coast can be significantly cheaper if there are moisture problems in the building (leaky). In many cases, these leaky condos are not leaky at all, only one side of the building has issues or a few units. If the specific condo is not leaky, is this a good buy? No. These units prior to being repaired and certified are very difficult to finance as the lender does not know how much money it may end up costing to repair the leaky units (even if it is not your unit, everyone pays). Clients who own these often get bills for tens of thousands of dollars and have no way to pay it. For investors these properties may be worth the risk if they have money to repair them but for first time buyers we don't recommend it.
Older houses that need some TLC can be had for a very good price but will they become a money pit? They may, but if you have a proper inspection done prior to buying so you know what you are getting into, these can be very good buys. Most buyers don't want to do anything but move into a house, so if you are motivated to roll up your sleeves these properties can be a diamond in the rough (and they are usually easy to finance).

A Good Deal? Sometimes these properties are good deals and other times they are cheap for a reason, do your homework!