Quote:
Originally Posted by retiredguy123
I try to not be negative when posting, unless it is warranted. I have been a landlord and I have done financial planning. If you depend on a management company to do most or all of the work, it is very difficult to make a profit. Most landlords, who make money, do it because the property increases in value beyond normal inflation, not from collecting rent. Also, some landlords do not know how to do the math, and they only think they are making money because they may have a positive cash flow. But it doesn't work that way. If you can make a 5 percent return with a bond investment and a 5 percent return by being a landlord, you should not be a landlord. Another mistake new landlords make is that they assume the property will be rented 100 percent of the time and the tenants will be good people who will always pay the rent and take good care of the property. Personally, I think that buying a house in The Villages a few years prior to retirement and renting it out is a bad idea, especially if you are not an experienced landlord. The developer is still building new houses and there will be a stable supply and demand for houses for many more years.
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Just thinking this thru
If I was making the same net via rental on a house that is virtually guaranteed to increase over enough time and leaving my money in the bond, I would take the property every day of the year.
Second part, the villages may be building new properties for the next 20 years. But, will they be exactly where someone may want to be? Or will they be in the correct price range? What if the housing starts to increase? I know you don’t think it will. You could be right or we could see a jump in prices 2027/28. We only know what pricing is today. I know in my area home pricing continues to increase in value year after year. Even in today’s market.