Talk of The Villages Florida - Thoughts or Ideas on Second Home... Financial or Tax Thoughts

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Invest your money with Vanguard, Fidelity or other financial investment company for 10 years -- 10 years is a long time and the housing markets change over time.

Quote:

Originally Posted by jimjamuser (Post 2410233)

Be aware that the summers are HOT and with Climate Change they are getting hotter. As you age HEAT is harder to deal with. So, The Villages is great for about 8 months out of the year, but it is NOT so good for full time residents. If you plan on living in only ONE home then, I would suggest further north like South or North Carolina. Good Luck.

As my parents aged they lost body and muscle mass, needed warmer clothing, summers and winters temp in the house 80 degrees year round.

How many times in restaurants and shops do you see older TV residents wearing sweaters and jackets in the summer.

Not sure how old you are, but notice with many friend in their 80s living in TV, the inside temp is like walking into an oven. Rarely do they spend anytime in lanai with temps below 75. It’s so hot for us we limit time in their homes, and invite them to ours, always remind them to bring a sweater.

Have two homes - where to spend the cash assets

Quote:

Originally Posted by MNViking (Post 2409974)

Good morning, I am seeking information from those who are more seasoned and experienced than myself in this area. Allow me to paint the scenario, and if interested I would value input, and thoughts or considerations I may have not looked into or even thought of.

Situation: Age 55, with a wife of 42. Looking to purchase in the Villages and do not want to spend more than $300k for a home down there. This would be a second home, and used as such, not sure of renting it out yet as the distance of caring for and who to watch over it may/may not be an issue. That being said, it will eventually be our retirement home, and visits until that time, or we are allowed to work from our current jobs and office down there. That is neither here nor there for the conversation. (Unless something is valuable I should know.)

I owe less than $105k on current home.
I have roughly $150K sitting fairly liquid to use on a purchase of the home down there to minimize the mortgage loan.

Questions and thoughts I am seeking are:

Should I pay off the current home, and not have the mortgage, and take out the full mortgage on the future retirement home and put at least 20% down to avoid PMI on that home?

Do I not pay off the current home, and then put $100k+ on the down payment on the future retirement home? Keeping roughly $40k+ in a money market for any boo-boos that may occur for a rainy day fund?

I am trying to ascertain the info to help make a better education decision for the finances, and since I am not in that industry, I don't know what I don't know. Therefore the questions may not be right?

Feel free to ask questions and I will check back and respond. What decisions did you all make, or what are the thoughts on what is best?

I appreciate the information?

I think you should pay a person locally to look at your financial situation first, then a tax accountant based on what you believe you want to do. Your comments are so open about what ifs? The best people are those who run these numbers.

Quote:

Originally Posted by Sully2023 (Post 2410409)

:coolsmiley:
:agree:
:mademyday:

of course, that's my professional skillset, so

:bigbow:

Quote:

Originally Posted by MNViking (Post 2409986)

It is right around 4% for current home.

@retiredguy123

As for spending time down there, at current 4-6 weeks, but Not sure I want to pay for a place 10 years now at those future costs with income becoming smaller as I will be retiring. Could also rent out if we chose.

Since you are both young, I would highly recommend not buying a 2nd home anywhere until you are close to retirement. So many things change with time...jobs, family, interest rates, health, etc. Rent weekly or monthly to explore and enjoy not having to worry about the responsibilities of two homes. Assuming you might be working another 5+ years, most of us have no vision on what TV will morph into. You may not like the area you choose now when you can be here full-time. Likely, for the $300K home you could get today it would be smaller than what you really want for your permanent home in the future. Regardless, home values are likely to rise if you wait until closer to retirement, but keep in mind your current home should do the same, so some offsetting trade-offs when you sell. I'd avoid the extra headaches and time. Yes, it's expensive to rent, but that takes a lot of stress away also. Reevaluate when you are closer to retirement. Keep in mind that so many people that buy their "forever" home do end up moving again for a variety of reasons.

Quote:

Originally Posted by MNViking (Post 2409974)

Without reading any of the of the other responses - my first thought is check with your financial advisor where you currently reside.