Quote:
Originally Posted by BayLady57
I was listening to a real estate show on the radio a few days ago while I was driving to work and according to what was relayed in this show the cost of lumber has gone up not because there is a shortage of trees, it is because the lumber mills are still not running at full capacity.
Around 2015 I started to consider TV as a possible retirement destination so I too followed what was happening in the community along with the prices of homes. With being +/- 7 years from retirement in 2015 I certainly expected both pre-owned and new home prices would rise in the interim years to my retirement especially since mortgage interests rates were still low. Maybe I am not sticker shocked as you regarding the rise in home prices in TV because when my late 1st husband and I began looking at buying or building a home right after we married in 1986 not only were the price of both pre-owned homes and the cost to build new high, the mortgage interest rates back then were in the double digits. After looking at what seemed to be a gazillion pre-owned homes which most all needed a good deal of work, we decided instead to build new no matter how long that took. A new development in my R.I. hometown at that time were releasing lots a section at a time and having saved like crazy working every hour of OT we could get for the next 3 years following our marriage we were able to purchase in cash a lot in this development for the non-negotiable price of $65k which was a good deal of money back then. In the year following purchasing our lot we lucked out in finding a fairly priced contactor that we could work with and that summer we began construction. Our year long construction mortgage had an 11% interest rate, and following because of a slight mortgage interest rate drop and having the equity of owning our land we were able to transition into a conventional 15 year term fixed rate mortgage at 9%.
Following building our home our next goal was to pay off our what we considered our high interest mortgage ASAP. So we continued on the grab every hour of OT path, drove old cars, passed on vacations, etc. and with a little help from my parents we were able to pay our mortgage off in 8 years instead of 15. When I add in the cost of the interest we paid over those 8 years to the cost to build our house 31 years ago, that total cost was pretty close to the current cost of the TV model you mentioned in your post minus the bond.
So from my experience and perspective with mortgage interest rates still low compared to the rate I had when I had a mortgage, then add to that property taxes are still relatively low in TV compared to mine and those who live in states like NY, NJ, etc. which are much higher, and with no Florida income tax which is very appealing to retirees I am actually surprised home prices in TV have not risen even higher than they have.
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People do not think. A line from a now departed friend. I was an overnight success, it only took me 45 year of hard work, saving, investing etc.
We are ex-New Yorkers. I know people here from N.Y., N.J, Chicago, Calif, Hawaii. I ask,
are you trying to turn Florida into what you RAN AWAY FROM. We left behind a 6% state tax, 3% city tax. Some complain about the roads, electricity etc. Electricity in NY is among the highest in the nation. Roads? The Belt Parkway has been under repair for 40-50 years.