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Originally Posted by melpetezrinski
Yes, it does but I definitely don't agree with the following 2 assumptions. 1. "resales are generally higher priced than new, based upon human nature of wanting a fully developed neighborhood" This theory might have held water 4-5 years ago before the major TV expansion (think Fenney and no infrastructure) but I think there are just as many homebuyers that would prefer a brand new home to start their next chapter. Recent sales volumes of both seem to point in that direction. Also, most resales are priced higher since they have made countless, financial updates. 2. "as most are bought from cash" There are many reports/graphs out there that have this % at 60. In fact, there were 4 months this year where cash buyers were at 50% OR LESS. So, the drastic increase in mortgage rates has and will continue to have a big effect on TV homebuyers.
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That's fine, makes for a good discussion. All the quarterly sales data we are sent in the mail show that the median price of the resales are always higher than the new sales. I haven't seen one that has shown differently. That's where my data assumption comes from.
[quote] I think there are just as many homebuyers that would prefer a brand new home to start their next chapter. [/b]
That reads like an opinion, but there was also a stat from one of Jennifer Parr's testimonies that a large / significant portion of buyers south of 44 were villagers moving south from existing houses, which were priced cheaper than existing houses, within the last 3-4 years. So for every relocation south of 44, there were new people coming into the villages buying resales higher than new.
People wanting pools might prefer an existing house with a pool because they can't disaggregate the cost of the pool like they can with a new house and having to pay to have a new pool built, which appears very expensive today.
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Also, most resales are priced higher since they have made countless, financial updates.
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not sure what a financial update is, i have never heard of such a thing, but you are agreeing that the resale prices are higher than new, just for a different reason. ok, that's fine, at least we agree that resales are priced higher. And your assumption is probably more correct.
I don't perform any serious financial real estate analysis of TV, mostly CFP and CFA type of financial analysis.
As far as mortgages versus cash sales, can you point me to the data source? We did buy with a mortgage because it was a second house and an impulse buy, and have since paid off the mortgage, but that took a bit of financial restructuring with rates at their lows and buying in marsh bend when it first opened prior to most of the amenities as a great opportunity to get in very early. Just curious. .
good discussion though, with some alternative scenarios to consider.
now onto the IRMAA fear to find the IRA to ROTH optimization break point. I know that I don't have a big enough IRA or taxable assets to worry about IRMAA.