Property Tax w/o Homestead

[Army Guy]

Ok, slap my hand if this has been covered, but I searched and could not find an answer. Well, maybe I did but could not understand it! Here is my question: We are going to purchase when we find the right one, a new CYV from what we see the price will be somewhere between $165,000 - $180,000 for the floorplan/type we want ( Beauregard). For the time being we will still own our home in another state in which we have the homestead exemp. so we can't do both with it. Until we sell our other home, and make FL our residence and file for homestead there, how much tax will will have to pay? We are also going to pay the bond full when we make the initial purchase so please don't include that. Need to know so I can do the number crunching for our budget!
Thanks!!!
Army Guy

[GatorFan]

http://www.sumterpa.com/Millage.asp

[Army Guy]

Thanks Gator! By the way WAR EAGLE!!!!!! LOL!
If I did it right the rate would be $2634.71 or $219 a month. On a $190, 000 (est) CYV.

Army Guy

[English Ivy]

We are also going to pay the bond full when we make the initial purchase so please don't include that. Army Guy

Others will certainly weigh in with their opinions, but I would seriously rethink this strategy. After a couple years if you are very happy in your courtyard villa and have no plans to upgrade or downsize in The Villages, then you can pay it off. If for whatever reason you decide to sell your CYV, I seriously question you'd get that bond money back in your selling price.

We recenty sold our corpus christi ranch home and upgraded to a small designer. There is no way we would have gotten our bond payment out of it when we sold had it already been paid off. Maybe in several years when the economic picture is once again brighter (I hope), but in the foreseable future I'd give it serious consideration. Just my thoughts.

Good luck however you proceed and welcome to The Villages!

[Army Guy]

Thanks English! Ok, we will definitely think about that. We were just looking at lowering monthly payments out to control costs.

Army Guy

[Carla B]

Depending on circumstances, many people give up their homestead exemption in the state they're coming from and become residents of Florida. The homestead exemption in Florida is 50K but the real benefit of homesteading in Florida is that the assessed value can't be raised more than 3% per year vs. 10% per year for nonhomesteaded properties.

We own a condo in South Florida. Here's how Palm Beach Co. set the taxable value for 2008: In 2007 the market value was 216280, assessed value was 138538. Market value in 2008 was 164400, a decline of almost 52,000 due to market conditions but the assessed value increased 3% to 142694. Homestead exemption was $50000, leaving a taxable value of $92694. Some people in the same building are paying $900+/- per year in property tax, while others are paying around $4000 per year for the same type of unit. It depends on the year they bought, whether or not they homesteaded, and how badly the county wants revenue.

Just something to consider.

[Army Guy]

Carla, Thanks! We are definitely going to move our residence as soon as we can, but for right now AL still has to remain as our primary.

Thanks, Army Guy

[graciegirl]

I agree with English Ivy on not paying the bond right away. I love my house here, but we have not decided to live here full time, but if we did, we might change houses....but probably not. We love the people around us.

[Barefoot]

Some people disregard the bond amount and don't feel it is part of their purchase price because they can pay it in installments, like a mortgage. But it is part of the purchase price and results in higher monthly payments!

When we looked at houses, if a bond was still owing, we added the unpaid bond amount to the purchase price of the home! For an accurate comparison.

We eventually bought a home on which the bond had been paid in full. And we liked the lower monthly payments a lot.

[Army Guy]

Barefoot, I tend to agree with you. The wife and I follow the Dave Ramsey principal of leaving totally debt free. So paying off the bond with the purchase is a priority for us. We will also be paying cash for our CYV.
It is amazing how much easier life is and enjoyable when you live totally debt free!

Thanks, Army Guy

[villages07]

AG,

Debt-free is a wonderful goal...but, I strongly agree with several other posters that it is wise to live in your house for a full year before paying off the bond. Make sure it is the right house for you in the right location. If you pay off the bond upfront then sell a year later you will not recoup that investment.

[Army Guy]

Villages07, I know but old habits are hard to break!
But you do bring up a very valid point for us to consider.
Thanks, Army Guy

[zcaveman]

Not to hijack this thread (sorry Tony) but are there that many people that buy in TV and then move? Is it because you did not do the research on the type of house you wanted to buy or the village you picked? Did you upgrade because you decided you wanted something bigger or smaller?

I know some that purchased ranches with one and a half garages and moved because they had two cars and wanted to put them both inside. Hello!! Or wanted more room in the garage for the cart. A Little research would have figured this out before you made the move and you would have gotten what you wanted on the first try.

In my opinion, there is a lot of money being spent in fees and lawyers and movers moving from area to area in TV because you did not do the research or recon the area.

I moved here in 2001, did my research and checked out the area and am very happy and have no desire to upgrade or downgrade.

Just asking.

[Halle]

:confused:

When we bought we thought we would be snowbirds, now we think we will be full-time when we retire and will probably want a bigger house. So it isn't necessarily poor planning just a change of plans. We lived in Florida for years never planned to return but you know what they say about the best laid plans.

:pepper2::pepper2:

[Barefoot]

are there that many people that buy in TV and then move? Is it because you did not do the research on the type of house you wanted to buy or the village you picked? Did you upgrade because you decided you wanted something bigger or smaller? Just asking.

Supposedly the average Villager moves three times. I would think probably due to a change in circumstances or lifestyle, and not poor planning.

[Bryan]

I agree with several others that posted here - moving within TV is most often NOT due to poor planning but to a change in circumstances. Life is not static - stuff happens. Sometimes that "stuff" makes it desirable, maybe even necessary, to move within TV.:shrug:

[zcaveman]

Supposedly the average Villager moves three times. I would think probably due to a change in circumstances or lifestyle, and not poor planning.


I assume you mean that the average Villager moves three times in a lifetime.

I guess with the size of the bonds these days, it might be a good idea to wait a couple of years before deciding that where you purchased in TV is the place for you.

[zcaveman]

One more thought. You have until June or July of any year to pay off your bond so it won't end up on your property tax bill. I bought in July of 2001. I waited until June of 2002 to pay the bond. But only because I wanted the interest in my bank account until June and then I paid it off.

[yorkmaine]

Or, you could buy in Lake County where there are no bonds.

[Army Guy]

But the only problem is just a very small area of TV is located in Lake County.

Army Guy

[zcaveman]

Or, you could buy in Lake County where there are no bonds.

Or you could buy in Marion county where the bonds were small and many of us paid them off because of that.

[Halle]

Some people disregard the bond amount and don't feel it is part of their purchase price because they can pay it in installments, like a mortgage. But it is part of the purchase price and results in higher monthly payments!

When we looked at houses, if a bond was still owing, we added the unpaid bond amount to the purchase price of the home! For an accurate comparison.

We eventually bought a home on which the bond had been paid in full. And we liked the lower monthly payments a lot.

:agree:

Also the interest on the bond is not deductible. If you buy a house with the Bond paid and have a mortgage that includes the Bond the interest becomes tax deductible. With mortgage interest rates being low this may be a better deal.