I am trying to consider which is better of the two options based on the given premise:
1) The homes in question are in fact mobile homes.
2) Both the mortgage for a new mobile home and the full price of repairs for the used home are the same (example if the mortgage for a new mobile is for 35k then cost of repairs for the old is 35k)
3) The price of the home will depreciate regardless of if it is bought new or used.
4) The asking price of the used mobile home is low enough that it can be purchased outright. (lets say $2500)
5) The land which the mobile home would be moved to is paid off (you only have to worry about property taxes).
6) The county you are moving it to will allow it to be moved as is.
7) The used mobile home is currently livable.
Currently I am leaning towards repairs being the better option for the following reasons:
A) After the initial purchase the used mobile home is yours and you can repair it at your leisure.
B) Your not on someone's time schedule. Repairs can either be done or put off until a later point at your leisure, whereas with a mortgage you HAVE to put money down at a set time. In addition mortgages have interest rates which will cost you more than just the initial 35k in the long run (of course unforeseen repairs could pop up adding to the cost of the used home, but you are still paying that at your leisure).
C) A paid off house/land saves you money if you live there while doing repairs.
What arguments can you give for the mortgage?
Read more: Which is better: To mortgage A mobile home for a given price or to make repairs equal to that of the mortgage?
