The Villages Expenses

[smsgtdaves]

Sorry to ask so many questions, but here goes. On the The Villages website they have a page with average monthly expenses on a $200,000 home which comes to less then $1000 total cost to live there. I'm not trying to dig into anybodies personal information. Is $1000 a month for real. It doesn't sound too bad or expensive to me. I'm trying too put together our month retired budget to see where my wife and I would stand, and see if our dream is really reachable. Thank you.

[memason]

I can tell you that when I calculated my monthly budget, it was closer to $3,000. ...almost $5,000, if we opt for a mortgage .vs paying cash.

I took everything that was on the Villages website and then added some categories that were not there, like clothing, food, entertainment, etc. Of course, these expenses are different for every person, but you should guesstimate what you think your retired lifestyle will be. I was very generous with the budget for Greens Fees... :D ...I also budgeted $400./month for travel and entertainment, as we'll eat out more and travel more.

I also inflated the Villages expenses by about 10% to allow for a larger home, as we will likely purchase a designer or premier home. Therefore, taxes, bond payment, taxes, insurance, etc. will be more.

Finally, the list on the Villages website is a great place to start, but in the end, it's all about the lifestyle you intend to lead, once you get there. I also wanted to look at a "worse" case scenario of expenses to bounce against projected monthly income.

Hope this helps with your analysis...

[Pturner]

I can tell you that when I calculated my monthly budget, it was closer to $3,000. ...almost $5,000, if we opt for a mortgage .vs paying cash.

I took everything that was on the Villages website and then added some categories that were not there, like clothing, food, entertainment, etc. Of course, these expenses are different for every person, but you should guesstimate what you think your retired lifestyle will be. I was very generous with the budget for Greens Fees... :D ...I also budgeted $400./month for travel and entertainment, as we'll eat out more and travel more.

I also inflated the Villages expenses by about 10% to allow for a larger home, as we will likely purchase a designer or premier home. Therefore, taxes, bond payment, taxes, insurance, etc. will be more.

Finally, the list on the Villages website is a great place to start, but in the end, it's all about the lifestyle you intend to lead, once you get there. I also wanted to look at a "worse" case scenario of expenses to bounce against projected monthly income.

Hope this helps with your analysis...

:agree:

I think the estimate provided by TV is reasonably accurate in what it covers. It generally covers household expenses that are common and specific to TV.

The best starting point is probably your current budget, which no doubt includes food, clothing, entertainment, maintenance and repairs, health insurance, etc.

Adjust those items in your current budget that would change if you lived in TV. For example, your clothing budget might go down, entertainment might go up (if that's your choice).

For those line items that are included on The Villages estimate sheet, using TV's estimates will probably be fairly accurate, adjusted for house size/ type and perhaps a 10-percent margin-of-error cushion.

[GuyWin]

I think the TV numbers are fairly accuate. The estimate I saw was in their latest brochure and used a $250,000 home as the example. Of course they do not include a mortgage.

Watch out for the monthly cost of the CDD Maintenance and Debt (bond) fee. As I understand it, if you buy new construction everyone pays the same amount for the bond in the village you build in regardless of the price of your home. We have an estimate for the Total CDD annual fee of $2,336.38 in the Village of Pennecamp for a Designer Home priced at about $300,000. That's roughly $200 per month. The TV estimate for a $250,000 home is $150 a month.

Also, the TV estimate for Taxes of $240 a month assumes you have the Florida Homestead Exemption which means you are living in the Villages as your primary residence.

[zcaveman]

We have an estimate for the Total CDD annual fee of $2,336.38 in the Village of Pennecamp for a Designer Home priced at about $300,000. That's roughly $200 per month. The TV estimate for a $250,000 home is $150 a month.

My annual CDD maintenance tax payment is $454. I am not sure who told you $2336 but that seems quite high for the annual CDD maintenance cost for any CDD. You might want to check your numbers. My entire tax bill is not $2336.

[GuyWin]

Z,

I hope you're right about the CDD being too high. It's hard to understand exactly what they're saying on my Estimated Settlement Costs. Here's how they show it:

CDD assessments are paid in advance based on a fiscal year (Oct 1 - Sept 30)
CDD - Estimated annual Community Development District Assessment:
Estimated CDD Maintenance Assessment (prorated at closing) $683.69
Estimated CDD Debt Assessment (prorated at closing) $1,652.69
CDD TOTAL $2,336.38

You may reduce your annual CDD assessment by prepaying your estimated CDD Debt of $20,268.61 (30 year bond)

[golfnut]

my recollection is the cdd maintenance assessment never goes away but the cdd debt assessment goes away after 30(?) years, (you can pay off your bond anytime and then you no will longer have the annual debt assessment)...GN

[Niels]

Obviously, some of the expenses on the estimate provided by the villages have to be adjusted based on the size of your house or your personal preferences (e.g. they only allow for basic cable in their costs).

One item not included in the list of costs I received was pest control. This can be quiet expensive if you opt for a full pest control package rather than doing it yourself. You have termite protection, house pest control and lawn pest control.

Also, if you have an oversized lot (like I do) you get charged more for items like lawn mowing, lawn pest control and have to pay more for water to irrigate your lawn.

[jebartle]

you can also save if you buy your home in Lake County....NO BOND!

[Army Guy]

We have a 2 bedroom CYV, and our monthly cost is $730. We do not have a morg.
So I also agree the numbers are very close.

Army Guy