Surviving the Mortgage Crisis: Living Outside the Box

The recent bust in the housing market has caused a boom in other real estate markets. Alternative homes, such as RVs, co-ops, houseboats, and factory-built models are back on the radar screen.

The unthinkable now looks like smart thinking. Only a few years ago, homeowners would have laughed at the idea of trading in their million-dollar home for a double-wide mobile home. But with the housing market bubble bursting in a most spectacular fashion, they're not laughing now.

People are considering housing alternatives. Far less expensive to purchase upfront, they may prove to be a more prudent investment in the long run.

Doing the double-wide

Once looked down upon by most home dwellers, manufactured homes are back with a value-laden vengeance. Today's typical double-wide mobile home features sturdier construction and more resistance against its long-time nemesis-tornadoes.

For about $50,000 to $75,000, you can buy a mobile home with three bedrooms, a couple of baths, a dining room, and some space to garden. You wouldn't own the property, so you'd pay a monthly fee for the lot rental, utilities, and other city services.

Love this boat

With all the flooding that's ravaged the Midwest this summer, the case for houseboat living grows stronger each day. The costs for such alternative domiciles are wide-ranging: You can purchase a yacht the size of a small Caribbean Island for millions of dollars, or you can be frugal and get a nice-sized living space for half the cost of a land-based dwelling.

Houseboat living brings its own challenges. Along with ongoing maintenance-even a boat can't escape the corrosive effects of water-you'll have to find affordable marinas and ports. Because you'll contribute nothing to the property taxes of the ports you'll be visiting, many ports may not welcome you with open arms. Owning a houseboat isn't necessarily smooth sailing. However, if the setting is right, the cost-savings can be great.

Co-ops that compute

Perhaps the most intriguing development in alternative housing is the re-emergence of the co-op. To live in one, each owner purchases a share of the corporation that controls the housing units. The resale value of each unit is determined by a specific formula (approved by the co-op), which is designed to prevent speculation. While traditional homes were appreciating in double-digit figures, this was considered foolish thinking. Today, it appears visionary.

Co-op dwellers share in the mortgage payment, property taxes, maintenance, and other expenses. It's very similar to the model upon which condominiums are based, but resale pricing restrictions make it far less likely that a homeowner will flip the property and move on.

The precipitous drop in home values has led to the rise in alternative housing. People are warming to the thought that you don't need a plot of land and a picket fence to call your house a home. Check out alternative homes: They may be coming soon to a neighborhood near you.