Renting vs Buying in TV?

Renting vs Buying in TV?


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Renting vs Buying in TV?
Old 12-26-2018, 04:23 PM
NatureBoy NatureBoy is offline
Join Date: Oct 2018
Posts: 57
Question Renting vs Buying in TV?

I'm about to hit the big 5-0 and my wife & I are starting to look at where we want to be when we become empty nesters in about 5 years. The easy answer is to roll the equity in our current home to a Villages home and keep on chugging. But not so fast.

According to this article the decision to rent vs buy is far from a slam dunk for 'buy'.

The prime factors I see are:
  • How long you intend to stay in the home.
    On the buying side, the shorter time you plan to stay in a home, the more money is eaten up by closing costs, agent commissions, remodeling, etc. In our case, our child will go off to college and we MIGHT move to wherever she ends up to be near any grandchildren. So we could be in TV from four to eight years and then move away.
  • The Price-to-Rent ratio.
    TV is a vacation area and rents vary greatly seasonally. I poked around in Zillow a bit, but it was hard to get a feel for the P/R for longer term leases.
  • Appreciation
    If the article is to be believed, over the long run, home prices don't outpace inflation measurably. From what I've seen of TV, they are building new homes so fast with no end in sight, that it appears resales go for about the same as new. Maybe at some point FL will put a moratorium on new construction for environmental reasons and that will make the prices shoot up. But in the mid-term, I don't see a lost opportunity cost for holding out on buying.

One of the things that's impressed me about TV people is that many "do their homework" and did a lot of research before moving to TV. Anyone care to share any of the financial homework you've done or have seen others do on the rent vs buy in TV equation?
"This world hasn't been the same since they brought the outside john indoors." - Skip Smith

Old 12-26-2018, 04:36 PM
JoMar JoMar is offline
Join Date: Apr 2014
Posts: 2,805

One of the first questions you need to ask is are you looking for a place to call home or an investment? Sounds like you are leaning to investment. There will be an option in 2020, The Lofts at Brownwood which will be minimum one year leases. There are many here who have moved 3 - 4 times, I assume they have made enough profit to meet their requirements....we have a couple in our neighborhood that are on home 3 and every move was an upgrade.
No one believes the truth when the lie is more interesting

Berks County Pennsylvania
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Old 12-26-2018, 05:04 PM
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fw102807 fw102807 is offline
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Location: New England
Posts: 4,138

That an awful lot of mights and maybes. What if your daughter does not have grandchildren or if she moves to Florida. Planning for the unforeseen does not seem like much of a strategy to me.

Last edited by fw102807; 12-26-2018 at 07:30 PM.
Old 12-26-2018, 06:40 PM
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eweissenbach eweissenbach is offline
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Location: Smithville (Kansas City) Mo./ Megan Villas, Sanibel TV
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Since I've been coming to TV since 2010, the prices for new and pre-owned homes has far outpaced inflation consistently. Saying that, it is NO guarantee that will continue! I have always been a buyer with the philosophy that the landlord bought the home, is making some money or breaking even on rent, and getting all the equity increase. There is no sure answer but, short term (I would say four years or less) renting may make sense, but given your perameters, I would be a buyer.
Oldcoach Ed
"You cannot direct the wind, but you can adjust the sails" "Be yourself - everyone else is taken"
Old 12-26-2018, 07:13 PM
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graciegirl graciegirl is offline
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Location: From Ohio, now happily live in Laurel Valley
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Originally Posted by fw102807 View Post
That an awful lot of mights and maybes. What if your daughter does not have grandchildren or if she moves to moves to Florida. Planning for the unforeseen does not seem like much of a strategy to me.
I agree.
I have to be myself, everyone else is taken.
Old 12-26-2018, 08:30 PM
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villagetinker villagetinker is offline
Join Date: Sep 2013
Location: Village of Pinellas
Posts: 5,001

IMHO, I would think buying would be the better option, but you need to consider:
1. Where are you getting the money from? Savings, investments. etc?
2. Possible lost income from using this money?
3. Current interest rates for home loans if you decide to finance. look at 15 year to 30 year for best rate.
4. You may want to talk to your financial advisor with regard to buying versus leasing. I consider leasing as "sunk money", you are throwing it away. Purchase should be lower monthly cost, possible tax deduction, and you are building equity.
Good luck with your quest.

PS, TV is great, and you can always travel to the grand-kids a couple for times (or more) per year.
Pennsylvania, for 60+ years, most recently, Allentown, now TV.
Consider demographics
Old 12-26-2018, 09:03 PM
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Toymeister Toymeister is offline
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Posts: 460
Default Consider demographics

I would buy, here is why: The baby boomers started in 1946 but peaked in 1957. Those boomers will be 62 next year. In 2023 they will be 65. The demand for homes will continue at an accelerated rate for birth years 1958 -1964 Presumably, home sale price will exceed inflation based upon this demand.

As a rule, though, not all homes pay for themselves as rental income properties. Designers vary from 1500 to 2100 square ft. The spread in purchase price can be dramatic but the rent price... Not so much. In large part of depends if you handle the property as a business , or a hobby.

Last edited by Toymeister; 12-26-2018 at 09:11 PM.
Old 12-26-2018, 09:14 PM
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rjm1cc rjm1cc is offline
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Posts: 1,698

This site might help VH4R Home Rentals in The Villages

I would not want to be a landlord and would hold off on buying until I knew I wanted to live in the home. I am not considering financial gain in my decision.
Old 12-27-2018, 06:27 AM
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Challenger Challenger is offline
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Location: Biscayne Villas
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The most important decision in buying investment property is the "purchase price" which includes all costs associated with the transaction. Often associated costs can add 5-10 to the actual cost of acquisition . The rate of return on the investment is then based on that total expenditure. Long term increases in house prices ( disregarding special circumstances) usually track generally with inflation. If you truly want to determine ROI, all expenses must be accounted for. The average "non professional" investor doesn't account for wear and tear costs. How old is the roof. If the house is new you may get 15 yrs with the roof. Cost of roof replacement $8000/15 = $500+ per year maint. reserve; Air conditioner, refrigerator , repaint inside/out , landscape maintenance--on and on. My guess is that most amateur's do not do well after considering time value of money, and the fact there are liquidity considerations with real estate. Just some issues to consider if RE investment is a new venture in retirement.
"All that is necessary for the triumph of evil is that good men do nothing" Edmund Burke 1729-1797
Old 12-27-2018, 07:10 AM
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Bay Kid Bay Kid is offline
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Location: Northern Neck/Chesapeake Bay, Winifred
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6 years ago I came here to visit Dad. He rented for 2 months a year for what I consider big money. Within a day I fell in love with TV, of course. For over 20 years I owned a beautiful waterfront lot on the Chesapeake Bay I was saving for retirement. All I did was pay taxes and cut grass. I sold that land and put my retirement cash into a home in TV. Now I have my own private home with everything being mine. I stay from 4-6 months a year for about the same cost as Dad paid for 2 months rent, plus Dad gets to stay in TV each year for FREE. The balance of my family and friends also love to come visit, another great ownership bonus.

If I sold tomorrow I would be ahead of the game and would be lucky enough to have many years of enjoyment.

This is, in my opinion, the best investment in life I could ever of made!

Last edited by Bay Kid; 12-27-2018 at 07:13 AM. Reason: spelling
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