Renting in July, looking at buying

[patchshaf]

We are renting a CYV for July and also looking at one that is for sale. I have read this site for awhile and have seen the monthly costs breakouts but would like to ask a 'cost' question a different way. Is 45K yearly a reasonable yearly income purchasing a 200K mortgage in TV? I realize there a lot of other factors but based on the years of experience on this forum please just take your best guess. No other bills such as car payments or credit cards. I know this is a vague question but any thoughts would be appreciated..

[theorem painter]

Are you asking is $45K a year enough to cover mortgage payments on a $200K mortgage along with all the other expenses involved in home ownership?

[Fraugoofy]

In the olden days you were never supposed to spend more than 3x your salary so if you have 45k a year in "income" you top out a home price at about 135k. Not sure if that rule is still followed in today's economy. I have always tried to spend only 2x my salary so I could do other fun things, too, like vacation and eat weird food...

[sunnyatlast]

We are renting a CYV for July and also looking at one that is for sale. I have read this site for awhile and have seen the monthly costs breakouts but would like to ask a 'cost' question a different way. Is 45K yearly a reasonable yearly income purchasing a 200K mortgage in TV? I realize there a lot of other factors but based on the years of experience on this forum please just take your best guess. No other bills such as car payments or credit cards. I know this is a vague question but any thoughts would be appreciated..

Are you talking $45k net income, or gross income?

Even if that were net income, I'd only consider a home with maximum selling price of $160,000 and a mortgage amount of no more than $128,000.

Think patio villa, or historic section manufactured home, or older 2-bedroom courtyard villa in the areas surrounding Spanish Springs.

Monthly operating expenses of such a home are about $650-$700/month not including mortgage payment. Those expenses would be for:

Water/Sewer/Trash+Amenities Fee of $145/mo
Electricity
Cable/internet
Property Tax
Hazard insurance
Pest control-prevention

Down-size and breathe easier. The economy and inflation possibilities aren't exactly stable.

People live well here in smaller homes with really nice quality built into them. It's not about the house. It's about the freedom of being solvent with low debt obligations, and enjoying life outside the house.

Nobody looking needs to be impressed with what you buy. All homes here are nice.

[Shadow8IA]

They figure 1/4 of your income on housing. So a $160,000 mortgage with insurance and taxes would give you a 30 year mortgage of about $1100 a month. Plus add the $145 amenity fee for $1245. Which is about $15,000 a year. Which is over the 25% that is normally recommended. I guess the real question is what are you used to living on and how would this affect your normal lifestyle. If you have a 401k that would cover extras as needed you'd probably be fine. If the $45,000 is your only means of income it would probably be tight. If in doubt I'd start on the historic side where you can get a nice home for $120,000.

[patchshaf]

I appreciate the replies. The fixed costs, electric, water and such are all well documented and there are lots of Mortgage calculators around. The hard part is figuring out the soft (daily living) costs since we are moving from a work based expense style to a retired style. Things such as no daily drive back and forth, work lunches and picking up the tab, work/social outings in the evenings and all the associated trappings of work. I just picked 45K out as a figure, I should have asked - knowing how much you spend monthly/yearly in TV what would you consider a reasonable monthly or yearly net income if you were purchasing a house with a 200K mortgage. I have our fixed costs but I tend to underestimate 'soft' costs and my wife tends to overestimate... lol Obviously everyone is different but a group of replies will should provide a fair picture, again thanks for all the information and advice.

[LeeM]

This thread may help you alot. And there are many others if you search under 'cost of living in the villages'

Moving to the Villages - Part 1 - Talk of The Villages (https://www.talkofthevillages.com/forums/showthread.php?t=17717)

We are visiting in July also for a month. Where are you looking to buy?

[patchshaf]

We are looking at CYV's because of pets and currently are looking at one in Hadley. Would prefer to stay North of 466A but have not ruled out anywhere yet. The fixed costs are easy to find, it is the rest of living that is hard to estimate when moving to a new lifestyle in a new location...

[bagboy]

There are many activities in The Villages that are absolutely free. There are thousands of clubs, walking on executive golf courses, sports activities, nightly entertainment at each town square, etc. Should you choose to hire out for landscaping and/or pest control, that will be a few hundred dollars a year. Other than normal day to day living expenses which you already have, there shouldn't be any big financial surprises. Best of luck in whatever you decide to do.

[graciegirl]

We are looking at CYV's because of pets and currently are looking at one in Hadley. Would prefer to stay North of 466A but have not ruled out anywhere yet. The fixed costs are easy to find, it is the rest of living that is hard to estimate when moving to a new lifestyle in a new location...

A major factor in cost is eating out a lot. And whether eating out involves alcohol consumption.

It doesn't cost much to use your golf cart to go to the numbers of free activities. There are dozens of free pools and recreational centers with thousands of clubs. Free golf costs four dollars per round unless you sign up yearly and that makes it less money. Art activities can be expensive with new equipment initially.

Your wife is very wise to be the way she is. That is how most of us can live here.

New homes are often NO more expensive than used ones.

[theorem painter]

I thought when I retired I would save lots of money. No need to have an expensive wardrobe, no parking and commute expenses, etc. It didn't work out that way. The work expenses became leisure expenses. More time for hobbies that weren't free. More time to socialize with friends and the biggest expense was more time at home meant more redecorating projects. No matter what your disposable income will be you will find a lifestyle that will make you happy in The Villages

[asianthree]

I would think your banker would be able to answer your question on a better note. We had our answers before we came down from our bank as to what we can look for and what price range we needed to stay in.

[2BNTV]

I appreciate the replies. The fixed costs, electric, water and such are all well documented and there are lots of Mortgage calculators around. The hard part is figuring out the soft (daily living) costs since we are moving from a work based expense style to a retired style. Things such as no daily drive back and forth, work lunches and picking up the tab, work/social outings in the evenings and all the associated trappings of work. I just picked 45K out as a figure, I should have asked - knowing how much you spend monthly/yearly in TV what would you consider a reasonable monthly or yearly net income if you were purchasing a house with a 200K mortgage. I have our fixed costs but I tend to underestimate 'soft' costs and my wife tends to overestimate... lol Obviously everyone is different but a group of replies will should provide a fair picture, again thanks for all the information and advice.

Read the "nuts and bolts" section at the bottom of the "home" page. Zcaveman, (author) outlines very clearly what the cost of owning a patio villa, with the various expenses to be occurred.

Spending costs in retirement is up to the individual. Going out to eat all the time is only something you can plan for.

My uncle always used to say, "do you want to own a house or do you want the house to own you". Buy something that allows you to enjoy the lifestyle and not be looking at your wallet to see if you have the money to spend to enjoy yourself. IMHO

[patchshaf]

Thanks to all who replied to a poorly explained question. I read all the links and found a lot of useful information. I have read this site for awhile and there is a lot of data on the costs of what I would call 'home ownership', this includes mortgage, CDD, bond, electric, phone cable, yard maintenance and a lot of other things that can be qualified. When I asked about 'cost of living' I really meant all the 'other' stuff you spend money on. This is everything from groceries, golf, shows, eating out and all the other stuff you spend money on to 'live' the TV life. I got some of this information both in these posts and PM's and I really appreciate it. I fully understand that everyone is different but knowing that people have 200K mortgages and are living comfortably on 65K yearly income and could get by on less if they needed to is really helpful. Again many thanks for all the replies.

[patchshaf]

A major factor in cost is eating out a lot. And whether eating out involves alcohol consumption.

It doesn't cost much to use your golf cart to go to the numbers of free activities. There are dozens of free pools and recreational centers with thousands of clubs. Free golf costs four dollars per round unless you sign up yearly and that makes it less money. Art activities can be expensive with new equipment initially.

Your wife is very wise to be the way she is. That is how most of us can live here.

New homes are often NO more expensive than used ones.

Graciegirl, thanks and by the way I was raised in Ohio (I have seen your posts about Ohio) but have not lived there since joining the Navy at 18.

[T-325]

The census data shows the median villages household income of 54,000 dollars.

With a median house price of $218,000 I suspect many people have relatively small mortgages.

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Some facts from the census bureau:

Per capita money income in past 12 months $36,200
Median household income, 2009-2013 $54,693

Home ownership rate, 96.4%
Median value of owner-occupied housing units, $218,900


The Villages CDP QuickFacts from the US Census Bureau (http://quickfacts.census.gov/qfd/states/12/1271625.html)

[patchshaf]

The census data shows the median villages household income of 54,000 dollars.

With a median house price of $218,000 I suspect many people have relatively small mortgages.

----------------------

Some facts from the census bureau:

Per capita money income in past 12 months $36,200
Median household income, 2009-2013 $54,693

Home ownership rate, 96.4%
Median value of owner-occupied housing units, $218,900


The Villages CDP QuickFacts from the US Census Bureau (http://quickfacts.census.gov/qfd/states/12/1271625.html)

Many thanks, that was a very interesting link...