Planning for the unexpected

[anarick]

This may have already been asked on this forum.

After calculating what your monthly expenses would be in TV were there any unexpected costs/expenses that hit you by surprise?
Please share.

[getdul981]

This would have happened whether we were in TV or not, but the cost of gasoline has skyrocketed since we have been here. It hasn't hurt us as much as many other folks, because we drive a Prius and a golf cart, but it still hurts.

[DougB]

This may have already been asked on this forum.

After calculating what your monthly expenses would be in TV were there any unexpected costs/expenses that hit you by surprise?
Please share.

Nope

[Bonanza]

The thing that may end up hurting and costing all TV residents is the result of the IRS decision regarding whether or not Morse's bonds are tax free.

I cannot see this as going in his favor because no other bonds of this type are tax-free anywhere. We've already paid over $700,000 to his attorney which did not come out of his pocket; it came out of ours and we had no say in this matter.

When IRS levies their fine which is purported to be a few million, I'm sure the CDD will do the same thing: charge it to the residents, not Morse.

[2BNTV]

Nope

:agree:

Maybe, if something goes wrong with your home but that's a one shot deal.

One should be able to stick to their budget.

[Blessed2BNTV]

Think that's a great question. For those of us making the transition from working to retired, you plan and plan. When you are working and unexpected expenses come up (and don't want to take from savings), you can work overtime, get another job or in my case, make more sales.

When you retire it's more final - working - yes I know seniors do work.

While I know most of us have planned retirement, unexpected expenses can be unexpected.

In our case, we took all our expenses, including entertainment, and then doubled the number. When we knew we could hit that target, we felt comfortable retiring. Not to touch savings, which is for traveling and/or nursing care, OR our kids will have a great life!

We are retiring next month!

We appreciate the sage advice from others that have gone before us.

[OBXNana]

I know it isn't fair to compare PA with The Villages, but the water, trash sewer, and irrigation base were somewhat of a surprise. In The Villages the monthly cost is about $70.00 (rough number). There is more water used in The Villages, the trash is picked up twice per week, and less than what we pay in PA. Because we rent the property in The Villages until we can move full time, we have no control over water usage. There is an increase in these fees 9/1 and it may become more in line with what we pay in PA.
We budgeted more and this was a pleasant surprise.

We find when we are in The Villages we think we're on vacation and want to try all the restaurants, hit happy hour, and eat out more than we do in PA. We've discussed the fact we will need to cut back on that expense once we are residents. This is a cost someone has total control, and for us, we will have to fight the urge to eat out as much when we are residents to stay within our budget.

The IRS potential costs are a concern in the back of our minds because of lack of understanding. We hesitated for a while before buying in March and realized we can worry about what may happen or proceed with the purchase. Does the cost cross our minds at times, it would be a lie to say it doesn't, but we have no regrets for moving forward with the purchase.

Overall, the numbers we were given by our sales person were spot on and have had no hidden costs not anticipated.

[graciegirl]

This was drilled into me from childhood. How to plan for an unexpected surprise? Save your money. Do it now and do it when you move here. Whatever you have planned to use for living expense and then after the actual living expenses have presented them selves. Don't spend all of it, always put some back for a rainy day.

I have used this speech to my kids and grandkids four trillion times. Do you want to hear about not having unprotected sex? I have used that one too.

Whoops. sorry. I guess not.:read:

[buzzy]

You can expect your cable/satellite TV service to double or triple after the first year (or before)

[Papa Cuma]

The thing that may end up hurting and costing all TV residents is the result of the IRS decision regarding whether or not Morse's bonds are tax free.

I cannot see this as going in his favor because no other bonds of this type are tax-free anywhere. We've already paid over $700,000 to his attorney which did not come out of his pocket; it came out of ours and we had no say in this matter.

When IRS levies their fine which is purported to be a few million, I'm sure the CDD will do the same thing: charge it to the residents, not Morse.

Please explain how this would affect a Village homeowner ?

[njbchbum]

You can expect your cable/satellite TV service to double or triple after the first year (or before)

But that is only because many providers start new customers out with an introductory rate that normally extends for one year. The trick is to remember that the rate will increase after that introductory rate and budget accordingly.

[thelegges]

For the last year and a half before we retire we will be living on what we would get from my retirement funds and if so security is around. That way we will know how things will pan out. I don't do surprises.

[njbchbum]

The thing that may end up hurting and costing all TV residents is the result of the IRS decision regarding whether or not Morse's bonds are tax free.

I cannot see this as going in his favor because no other bonds of this type are tax-free anywhere. We've already paid over $700,000 to his attorney which did not come out of his pocket; it came out of ours and we had no say in this matter.

When IRS levies their fine which is purported to be a few million, I'm sure the CDD will do the same thing: charge it to the residents, not Morse.

Keep in mind that the payment of the VCCDD's attorney fees have been and still are paid out of our amenity fees and not out of our pockets as special assessments; and amenity fees have a cap on the potential for any annual increase. One can read the history of the IRS go 'round here: Village Community Development Districts (http://www.districtgov.org/IRSupdate.aspx)

[slipcovers]

Keep in mind that the payment of the VCCDD's attorney fees have been and still are paid out of our amenity fees and not out of our pockets as special assessments; and amenity fees have a cap on the potential for any annual increase. One can read the history of the IRS go 'round here: Village Community Development Districts (http://www.districtgov.org/IRSupdate.aspx)

I agree, I found this information out years ago with a simple google search. Also, a lifestyle visit lets you "try it out" first before deciding to purchase in TV. If you are the type of person that complains about every little thing, then TV is not for you. I personally love it there and find nothing to complain about. I am always looking for a man with a cowboy hat so I can shake his hand and thank him.

[Bizdoc]

The overall cost of living here is less than in Montgomery Co MD or in WV. The "add ons" like entertainment, eating out, green fees, etc can drive that up. However, they are controllable.

Do keep in mind that the real crisis is likely to come if one (or both) member(s) of a couple have to go to a skilled nursing home. While Medicare will probably pay for part of a "rehab" period, a longer stay is all yours. Figure around $8000 per month. Each.

Before my parents got sick I had told them to stay liquid at least $100K (they are 91 and 90). After most of a year in nursing homes (and *with* LTC insurance), we are steadily eating thru that and I'm begining to look at the time of CD maturities.

That cost varies. In the DC area, it would be more like $10-15K each. In a rural area, it could be less (if you can find a skilled nursing facility).

[Suzi]

I had planned out pretty much everything with one (1) exception: I had not considered that I would want/need a security system. I attribute my ignorance on the subject due to the fact I have lived "in the woods" for 35 years and I thought that TV was crime-free. Yes, I was naive, but I was happy in my own simple world :) But when we arrived and a rash of break-ins happened, we purchased a system and have monthly fees that we had not planned on. So to the question of the OP, other than that issue of security, other expenses we had estimated have been appropriate.

[dbussone]

You can expect your cable/satellite TV service to double or triple after the first year (or before)

Not with BrightHouse. No contract and at 24 months your bill will not increase more than $20.

[mtdjed]

Most estimates include taxes and taxes. But there are a few things that you need to consider that are not big but nibble your Yearly income.
Golf Trail Fees $140/year
Lawn Care $600/Year {Still a good deal)
Village EMAIL Golf reservations system ??/Year

Also I find that supermarket Prices are higher here than they were in Boston. That is offset by restaurant prices being lower. Note Lobster was $34/Lb yesterday in Walmart. Was $5/Pound in Marblehead, Ma in early August

[Bonanza]

I agree, I found this information out years ago with a simple google search. Also, a lifestyle visit lets you "try it out" first before deciding to purchase in TV. If you are the type of person that complains about every little thing, then TV is not for you. I personally love it there and find nothing to complain about. I am always looking for a man with a cowboy hat so I can shake his hand and thank him.

There is very little you can compare to when you spend, say, a week, during a "lifestyle visit" and what it's like living here. Oh, you walk around the squares, try various restaurants, meet many nice people and speak with them, check out different rec centers, drive through some villages, etc. You are also amazed at all the clubs that are listed in Thursday's paper. That kind of list goes on and on.

However, until you live here you can never have the feeling of what it's like to be a permanent resident. When you come here for that lifestyle visit, it's a vacation and that's the mindset, almost totally. Practically everything is fun, particularly if you are a golfer. Still and all, it isn't like living here.

[Bonanza]

Please explain how this would affect a Village homeowner ?

Thus far, Mr. Morse's attorney has been paid with monies from our monthly assessments.

It stands to reason that when IRS finally levies their fine, plus interest, Mr. Morse will again turn the other cheek and we, the residents, will be responsible for paying.

If anyone has a different thought, I'd sure like to be made aware of where the funds will come from.

[Bonanza]

Keep in mind that the payment of the VCCDD's attorney fees have been and still are paid out of our amenity fees and not out of our pockets as special assessments; and amenity fees have a cap on the potential for any annual increase. One can read the history of the IRS go 'round here: Village Community Development Districts (http://www.districtgov.org/IRSupdate.aspx)

Yes, the attorney has been paid our of our amenity fee.
While there has not been any special assessment, make no mistake, it is directly out of our pocket.
We, the residents, are the ones who pay the assessments.

While there may be a cap on an annual increase, exactly what is your opinion
as to where the millions for the IRS fine is going to come from???

This nonsense has been going on since 2008.
The history of the "go 'round" is nothing more than one postponement after another,
each with nothing more than double talk that has gone nowhere.
With each passing day, the fine increases.

[2BNTV]

I tend not to worry over things that are not in my control, re the IRS issue.

My personal feeling is that we may all be dead, before this comes to a final resolution. IMHO

[graciegirl]

Yes, the attorney has been paid our of our amenity fee.
While there has not been any special assessment, make no mistake, it is directly out of our pocket.
We, the residents, are the ones who pay the assessments.

While there may be a cap on an annual increase, exactly what is your opinion
as to where the millions for the IRS fine is going to come from???

This nonsense has been going on since 2008.
The history of the "go 'round" is nothing more than one postponement after another,
each with nothing more than double talk that has gone nowhere.
With each passing day, the fine increases.

The interest on Municipal bonds is not usually taxed. We are a CDD form of government, a huge complex that has no outside funding. Unusual but very successful way to do things as we all can see. Our lawyers, hired by the developers, may hold this in limbo for years to come.

It is NOT an issue of somebody doing something wrong, it is an issue of how the IRS interprets it.

http://en.wikipedia.org/wiki/Municipal_bond

[Villageswimmer]

The interest on Municipal bonds is not usually taxed. We are a CDD form of government, a huge complex that has no outside funding. Unusual but very successful way to do things as we all can see. Our lawyers, hired by the developers, may hold this in limbo for years to come.

It is NOT an issue of somebody doing something wrong, it is an issue of how the IRS interprets it.

Municipal bond - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Municipal_bond)


I may be misunderstanding part (or all) of this, but shouldn't an IRS ruling gave been requested PRIOR to issuing the bonds in view of the fact that this is an unusual issuing entity?

[dbussone]

I may be misunderstanding part (or all) of this, but shouldn't an IRS ruling gave been requested PRIOR to issuing the bonds in view of the fact that this is an unusual issuing entity?

It is customary, in my experience, to seek an IRS opinion when an entity is proposing to issue tax free bonds.

[The Buckeyes]

Whatever you have budgeted...add 50% and you'll be fine!

[Bizdoc]

For the masochistic, here's a training module on Tax Free bonds, including who does what:

http://www.irs.gov/pub/irs-tege/teb_phase_1_course_11204_-2module_a.pdf

[slipcovers]

There is very little you can compare to when you spend, say, a week, during a "lifestyle visit" and what it's like living here. Oh, you walk around the squares, try various restaurants, meet many nice people and speak with them, check out different rec centers, drive through some villages, etc. You are also amazed at all the clubs that are listed in Thursday's paper. That kind of list goes on and on.

However, until you live here you can never have the feeling of what it's like to be a permanent resident. When you come here for that lifestyle visit, it's a vacation and that's the mindset, almost totally. Practically everything is fun, particularly if you are a golfer. Still and all, it isn't like living here.

I totally agree, the lifestyle visit is a vacation. However, either before the visit or after you return home, if you just google "The villages, Florida" , there it is in black and white, clear as can be, IRS Bond investigation. If that is an issue, why would you buy in TV, especially since you are a realtor.

As to the outcome or who is going to pay if there is tax and interest is pure speculation.

[Bonanza]

I totally agree, the lifestyle visit is a vacation. However, either before the visit or after you return home, if you just google "The villages, Florida" , there it is in black and white, clear as can be, IRS Bond investigation. If that is an issue, why would you buy in TV, especially since you are a realtor.

As to the outcome or who is going to pay if there is tax and interest is pure speculation.

Do I detect a undertone in your posts? Let me ask you this . . . If you purchased your property after 2008, when you purchased, did you sign a disclosure regarding the IRS/bond issue? Were you told about it?

I guarantee the vast majority of buyers had no knowledge of this. Furthermore, regardless of the outcome, there won't be any tax. There will either be fines and interest or nothing.

Perhaps you want to post a thread regarding how many residents Googled your "black and white" version of "The Villages, Florida" to find an answer to your query?

And just as an FYI or point of information, the word Realtor is a registered trademark, and always capitalized.

[slipcovers]

Do I detect a undertone in your posts? Let me ask you this . . . If you purchased your property after 2008, when you purchased, did you sign a disclosure regarding the IRS/bond issue? Were you told about it?

I guarantee the vast majority of buyers had no knowledge of this. Furthermore, regardless of the outcome, there won't be any tax. There will either be fines and interest or nothing.

Perhaps you want to post a thread regarding how many residents Googled your "black and white" version of "The Villages, Florida" to find an answer to your query?

And just as an FYI or point of information, the word Realtor is a registered trademark, and always capitalized.


Could you please post a link as to which Florida Real Estate Disclosure Law it falls under?

[NJblue]

I think many people buy new homes and, seeing that they are already "landscaped", assume that there will be no additional cost in that area. It is true that the homes come with grass and basic shrubbery, but you will be in a very small minority if you choose to use the builder-provided landscape package for the long term. Most residents, especially in the designer and premium homes, add a significant amount of landscaping to their property. This can be anywhere from a few thousand dollars to many tens of thousands. Many also decorate their driveway.

Also, many, if not most, add things to the interior of their houses, including new paint, granite counters, built-in cabinetry, window treatments, new flooring, etc. Drive through any neighborhood that is up to four or five years old and you will almost certainly see a contactor's truck that is involved with some sort of interior upgrade/change.

[OpusX1]

It is customary, in my experience, to seek an IRS opinion when an entity is proposing to issue tax free bonds.

There is the rub. There was a opinion issued by the IRS, there was bond counsel, there is error and omission insurance from the bound counsel. After a period of time the Opinion from IRS was changed. Now there are lawyers making a nice living of this case. It goes on and on and may not be solved in the near future, who knows?

[courtyard]

Your biggest surprise expense when you buy a new home would probably be FLOORING. The carpets you get here will be threadbare by the second month. Footprints on the rugs will drive you crazy. So, expect to pay anywhere between $5,000 to $10,000 for new flooring.

[Bonanza]

Could you please post a link as to which Florida Real Estate Disclosure Law it falls under?

Nowhere on a Seller's Disclosure form does it make reference to a specific law, like most real estate papers.
It is simply a form a seller completes which buyers read and sign,
acknowledging they have read it and understand it.

I'm sure if you Google it you will find out what you want to know.

[slipcovers]

Nowhere on a Seller's Disclosure form does it make reference to a specific law, like most real estate papers.
It is simply a form a seller completes which buyers read and sign,
acknowledging they have read it and understand it.

I'm sure if you Google it you will find out what you want to know.

I am well aware of a disclosure "form", as is anyone who has bought or sold property. However, there are "Disclosure Laws" as to what must be disclosed. I did google this before I posed the question to you. I could not find anywhere in the "Disclosure Laws" that the IRS bond investigation would apply. If you find a law, please post it. Otherwise, it is not a "Disclosure" and therefore speculation. In fact, if it were a disclosure, and not disclosed there would be a lot of lawsuits.

[Madelaine Amee]

This may have already been asked on this forum.

After calculating what your monthly expenses would be in TV were there any unexpected costs/expenses that hit you by surprise?
Please share.

I think your original question has been hijacked ........... so, if I may put my 2 cents in:

There are certain expenditures in Florida that you cannot live without, make sure they are covered in your rainey day account:

Air Conditioning and Water Heater ---- both of these have give or take a 10 year life span, and you cannot live without either - expensive to replace.

Most everything else you can work around, but you do need air and hot water. ALSO - Health Care. If you are on medicare this will not be a huge problem, if you are not yet old enough to be on medicare - ouch!

I, obviously, cannot speak for anyone else, but to us retiring and voluntarily giving up two good incomes was very frightening and we went back and forth about it for several months before biting the bullet and doing it. We made numerous lists of pros and cons and spoke to as many retirees as we could and came to the conclusion to jump in and enjoy the rest of our life - we did and we do.

[Moderator]

Please stay on topic.... unexpected expenses ... and please do not direct comments at other members.

[graciegirl]

I think your original question has been hijacked ........... so, if I may put my 2 cents in:

There are certain expenditures in Florida that you cannot live without, make sure they are covered in your rainey day account:

Air Conditioning and Water Heater ---- both of these have give or take a 10 year life span, and you cannot live without either - expensive to replace.

Most everything else you can work around, but you do need air and hot water. ALSO - Health Care. If you are on medicare this will not be a huge problem, if you are not yet old enough to be on medicare - ouch!

I, obviously, cannot speak for anyone else, but to us retiring and voluntarily giving up two good incomes was very frightening and we went back and forth about it for several months before biting the bullet and doing it. We made numerous lists of pros and cons and spoke to as many retirees as we could and came to the conclusion to jump in and enjoy the rest of our life - we did and we do.


We did exactly the same thing.


And...as for the other issues on this thread, it makes me so glad we chose both times to deal with a developers agent to sell us a house. Thank you Jim McLaughlin.

Jim,you are an honest and decent man, even if you don't have to work TOO hard for a living. (JUST TEASIN') Jim has ended up being our trusted friend. He is old enough to live here and does live here in his SIXTH home with his equally wonderful wife, Patti.

I kinda like the no pressure sales agents to deal with rather than the more intense realtors that we have dealt with in the past in home buying

People who move here are not novices in home buying. We are probably the most collectively savvy bunch of home buyers because of our age and experience.

Some information for the OP.

You can live here very comfortably and happily without upgrading your landscaping, getting your driveway and garage floor done, having downspouts added to the sides and rear of your home, without adding a water conditioner, a home security system, or a pool.

I think you can trust the information given to you by The Villages about the cost of living. But YOU know YOU best and your own spending habits. We all change somewhat when we retire. Every single one of us wants to outlive our money.

Welcome home. It's pretty much all good.

[Bonanza]

I am well aware of a disclosure "form", as is anyone who has bought or sold property. However, there are "Disclosure Laws" as to what must be disclosed. I did google this before I posed the question to you. I could not find anywhere in the "Disclosure Laws" that the IRS bond investigation would apply. If you find a law, please post it. Otherwise, it is not a "Disclosure" and therefore speculation. In fact, if it were a disclosure, and not disclosed there would be a lot of lawsuits.

While partially "off topic" from the original thread, I am responding to your post because it needs some corrections.

Judging from your post, It's obvious you have never seen or signed one. You are incorrect regarding many parts and areas of a real estate Seller's Disclosure form.

We are speaking specifically, about a "Seller's Disclosure" concerning real estate when a buyer is purchasing a property, not a different type of disclosure.

Your assumption is inaccurate. No, most buyers are not aware there is such a disclosure; I would venture to say that 90% of the buying public has no idea there is such a form.

A Seller's Disclosure will always have a question regarding any type of lawsuit or litigation that must be answered by the seller. You will never find a specific lawsuit mentioned because the question encompasses all types of suits. There is no "speculation" whatsoever. There is either an existing or pending lawsuit or there isn't.

As you do not work in the field of real estate, you have no idea the number of lawsuits there are because sellers do not disclose faults and issues with their property. These disclosures are not simply limited to the specific property but can also cover an area close to the subject property. A sinkhole a few houses down the street would be an example of this.

[cquick]

This would have happened whether we were in TV or not, but the cost of gasoline has skyrocketed since we have been here. It hasn't hurt us as much as many other folks, because we drive a Prius and a golf cart, but it still hurts.

gas seems pretty cheap to us, we just got back from San Francisco.....$3.97 at the cheapest and $4.69 at the highest.