Cheaper to Rent or Buy??
 

We are coming to TV next year. I seems an annual lease for a $250,000 home is pretty much a wash to buying one. Are we missing something? Looking for 3/2 with two car or 2 1/2 car garage.
Any input appreciated.

Purchasing gives you a sense of community.
You know your neighbors and they have your back.
When you lease, you may end up in a different Village each year.
At our time of life, it's good to be part of a community.

Barefoot: I addressed a similar thread but did not want to appear controversial so I deleted it. As part of that post I also pointed to the fact that the problem associated with too many rentals is the loss of community.

Like many people I moved my family often for job. We pick a nice neighborhood and it always had mostly other people on the move (transient neighborhoods.

Many of my friends never left my home town and they stayed close , dare I say as extended family. I did miss that because my boyhood friends were the best friends I ever had.

In what weird math universe can it be a wash ? Considering you would be paying 18K per year for the lease plus all utility costs which includes cable, Internet, electric at 4K per year owning is definitely cheaper then renting. Also, how much value do you put on being independent from a landlord who could terminate your next lease at a whim. Moving is a hassle and although not expensive it's not that cheap. Will your security be returned after you move out ? Again, not your choice. Any landlord can nitpick repairs that will eat up your security, good luck getting it back. Again, not your choice. How will your neighbors feel about your transient status ? Again, statistically not good and not your choice. Homeownership is about the pride in knowing you are the king and queen of your castle and not a subservient that can be tossed out simply because your LandLord feels like it. For me, homeownership is priceless and not to be taken lightly.

One issue is how long do you plan to stay. If you are unsure of whether you want to live here then rent. The longer you stay the more attractive owning will look. Another issue is whether you want some time to decide which Villages you want to live in before buying. In that case rent while you look around.

Apples and oranges.

I rented last winter and now have recently purchased. Because I rented, I knew exactly what and where to buy to suit my needs.
If you truly think it is a wash, then buy, I feel pretty sure the property will appreciate and you will more that get your monies worth, or your heirs will.

If we would not have rented for three times we definitely would not have known where we want to live. Our first house we bought was just too small as was the garage. Second choice we knew was not the village we want to live in so we waited our time and the third time was the charm. It's the house we wanted the village we wanted. It runs us between 10,000 and $14,000 to run our houses. ( that's not a mortgage, we have no cable, phone, Internet) This year the last house was considerably more since it was preowned and there were things that needed to be fixed. Renting for a year or 2 frees up enough time to figure out where you want to be and what house you want to live in. Since TV is not cheap rent. Unless someone says they are renting, I have no idea. I did find that at our new house a few people down the street stopped while we were outside and yelled are you renters? So I have found that some are not very nice to those they think are renters. And how did we answer that rude person, we told them we were renters and to move on. That's not the people we want to call neighbors.

Just rent for a short term, like 2 months in a neighborhood where you think you might want to buy. While renting, look all around for a home to buy. I'd rent in Oct-Nov when rent is lower priced, and weather is perfect.

Rent money that way is a good investment in educating yourself. You'll also learn not to move 90% of your stuff from past home. Learn to live with less stuff. It is liberating.

Own or rent
 

Some very helpful information. Thank you. Being an ex condo building converter/owner I am quite familiar with how too many renters can devalue a building. I'm confident the Villages will never reach a 50% level of renters so I think paranoia in that direction is unfounded. Renters like owners come in the form of nice people and jerks. I've been an owner most of my long life but some of my best friends......
The above posts precipitate the following question. Do I dare ask if there are neighborhoods one should GENERALLY avoid? I know, opinions vary but I've been on the planet long nuff to know that every dozen roses has a stem or two with a petal or two that is slightly wilted. This is my whole point of renting. I would rather rent for a year or so in a great neighborhood than own in a bad one. And what makes you all move from a neighborhood? Perhaps this is a less obstreperous way of asking what is good and what is bad neighborhood wise.
I spent last week in TV and generally liked the north 1/2. More crowded but more compelling because of goods and services and it has not been denuded of trees. Looking forward to some constructive comments. Thank you in advance.

More crowded? How did you come to that conclusion? Most lots run from a little larger to quite a bit larger north of 466.


I can't think of any place here that could be described as undesirable by most peoples very high standards. It is pretty amazing, all of it. And people are very proud of their properties and take good care of them.

Hmm...let us see...what villages to stay away from...perhaps you don't want to consider the original and now considered historic villages across hgwy 27/441 - that requires use of what some consider the 'scary' golf cart bridge to reach shopping, dining, entertainment, many golf courses and doing chores if not taking the car. Actually - many of the manufactured homes there have been purchased by the Developer and the historic side is now becoming gentrified - or at least, updated! :)

We on the historic side also suffer from a lack of traffic when compared to other Villages areas. We have no shopping available to us amongst our homes. But we do have to contend with having the only bricks and mortar U.S.Post Office and a convenient gas station and convenience store which can be reached by golf cart.

Don't know where you were on the 'north side' that made you feel houses were closer together; but we in the original Villages suffer from maintaining larger lots and landscaping that has reached the stages of maturity and beyond. And much of that landscaping is 'complicated' by some very unusual ornamental design due to the fact that our deed restrictions are less stringent than other Villages. While that design can make one wonder, it can also provide one with some great big chuckles when enjoying a pleasant golf cart cruise around the streets without traffic on a pleasant evening to check out what's going on in the area.

And what can/can't be said about the newly refurbished and managed country club? - so welcoming. Wonder why everything updated except for the only pool in the Villages with its own waterfall! Golfers did have to suffer some while one of the courses was also updated - however they do that.

Good luck with the house hunt.

Buying only works if you have enough assets & don't have to worry about appreciation. If you are concerned about costs @ retirement age--do not buy-Rent-its much easier to break a lease, than to sell a property under duress.

If you are young, rent also, this way you will not be tying up disposable income in a fixed assed which has really little growth potential & you can't benefit from the growth unless you sell it.

There aren't any undesirable areas, but many are more social in the neighborhood than others.

I'd go for walks where houses are for sale that you like, and talk to residents in neighborhoods who are out in the driveway or walking their dog. I'd have my antenna up to see how they regard newcomers and whether there are neighborhood get-togethers, phone-email contact lists, etc. which indicate interest in including and getting to know newcomers......and renters.

In our neighborhood, seasonal renters' name and contact info is automatically requested by the social chairpeople who do the list and email communications about socials. Other neighborhoods might look down on renters because sometimes prejudice is spread and believed, against the idea of rentals. There will always be some snobs in every community.

I've been in some sort of real estate for over 30 yrs. Depending on the lease/month amount. Figure that $250k invested and earning 8% would yield $20k before taxes. Upkeep here is expensive not counting countless repairs to appliances, pools, hot tubs, lawn maintenance, bug control, monthly maintenance fees, etc. The list goes on and on......... If we were doing this again here we'd rent and leave all the hassels and repairs to the landlord!! Hope this helps - Mallory Voice
:MOJE_whot:

OP, in short it depends on what will be most comfortable and financially feasible for you. Everybody is different. What works for me might not work for you. I would rather own because it is my place and within the deed restrictions I can do as I please. Past Experence tells me that I can also make money by owning my house instead of renting.

But to each his own.

p.s. You can offer the landlord a long term proposition, i.e. 5 yr. with numerous protection clauses - death, advanced nursing care, rent increases not to exceed _ %/year, and so on even to the extend that if the landlord(s) pass away you'd be entitled to remain in the house until your lease was up or renegotiated. Mallory Voice

I doubt that the bridge will scare me. I used to race cars for a hobby.
If the developer is redoing some of the old man. houses there must be an opportunity for others to do the same. No??

I did visit the "historic" side last week while there and liked in particular the houses with the lake view. I talked to one lady that owned two of them and she indicated that the lake view came with a $30K price differential. I think the "landscape complications" mentioned above must be a euphemism for gnomes. :)

Question for you: Can the carports in the historic area be enclosed and made into garages without undue complications or nonsense with codes/permits??
Thank you
Rick

On the historic side with a $75,0000 mortgage you'll spend about $9000 a year for everything. Renting for 4 months will cost you $10,000+. If you buy you won't have to figure out where to rent every year and can leave your belongings. So it depends on how long you would be here. Houses sell real fast in the historic side so you could buy a starter house and sell it later when you know where you want to be. We love it up here and won't leave the area if we upgrade later.

Wow, even my millennial daughter just bought into The American Dream, despite what her generational peers think. I taught her right. The only way middle income folks can build wealth is through home ownership.

Rick - There are folks who have torn down the man. house and had their approved site built home constructed. No problem doing so as long as the architectural plans are Villages approved.

Those homes on the "lake"... are only waterfront as long as there is lots of rain to fill them! In the dry season - not so much water! But the view is lovely.

Re the garage - my guess is that it could easily be done - have seen some homes go through that process. When we first owned we had the rear carport area privacy screened with slider panels [could see out but could not see in from the street] and stored the golf cart there - leaving the car under the front carport area [we have a double length/2 car carport]. Eventually we added a separate golf cart on the back of the house and remade the screened carport area into a man cave. Our contractor took care of the permits/inspections/approvals and had no problem with architectural review or town of Lady Lake - easy peasy for us!

we've rented. Last year one month, this year two months, next year three months. The villa we're in is unique as it is on the NL golf course and has a wonderful view and virtually no neighbors on three sides. I'd never even rent a unit with twelve feet separation and you share the grill with the house behind you. Last year we asked about buying this unit. The owner has raised the cost 50k over one year! Nicest place and we've been looking with a Village Realtor and found non better. But this villa is not worth $315,000. We'd need to sell our Minnesota lake home to live here...no rush

i think it comes down to intention, if you are looking for a permanent or long term home it might be best to lease first as has been suggested, and get a real feel for that and other areas before you buy.Home prices and their escalation differs from the local area, so a purchased home will at least appreciate at the same 'villages' rate should you later decide to sell.

Thanks Beachbum. Highly important to know about the water level in the lake! May I ask what it cost to do the slider panels? Were they reasonably weather resistant? Can you give me the name or generic type of panel? Helpful post, thanks again.

Owning has many advantages. Come and go as you please. Your things are always there. Your neighbors are always your neighbors!

Years ago I did some number crunching on the "rent vs. own" issue, and what I came up with was this:
If lived in TV for 7 months, dollar wise, it was the break-even point. More than 7 months it would be cheaper to own, and less than 7 months, cheaper to rent.

This was probably 6 or 7 years ago. Curiously, an acquaintance of mine who was renting in TV at the time ran the same question with all of the numbers by his accountant, who came up with the same 7 month answer.

I have not kept up with the numbers since then, but I doubt the ratios have changed much.
Also, keep in mind that I was only crunching dollars, and not taking into account the various hassles and conveniences that are inherent in both renting and owning.

Are you planning on living in TV all year long?

Hi Laker
I will probably be there more than 7 months. I think with the convenience of owning plus cheap mortgage money I'm going to buy.
Thank you for the input

Renting
 

We are renting long term. We got an excellent price with all utilities included. At 74 and 65 we do not want the ownership hassle. We have a great landlady who responds quickly. As for equity....we certainly won't be the ones to use it so decided to enjoy that house cost in other ways and we can pay rent on our social security income.

ooooh. Now there is one I hadn't thought of! Well into my 70's means I won't be using the equity increase either, more than likely.

the good news is that either way, you'll have a good time.

I don't disagree about home ownership, however, her 401K is an even better way to build wealth - and make sure she invests in Stocks.

I agree with the 7 month thing.. or really, if you want to get fancy - buy it, rent it out for the high season, and you can basically live in it for free from May-September.
I know it is backward - but the only difference is the heat. We are letting our renters pay for the house, and we use it 3 weeks a year (in the summer and early fall). To be honest, there is always a breeze so if you stay out of the sun, you are fine. There are less crowds everywhere, which is nice. Just a thought - be a reverse snow bird :) Only negative is going up North in the winter.....

That's a negative most of us want to avoid! :cold:

Home ownership is freedom. Come and go at will.

Winter we're still waiting for winter no snow no ice no where to ski no I skating on the pond . It was 55° on Christmas day up north.

Well I have a different point of view. I have owned and rented and this isn't always an easy answer. A brand new 1900 sq ft villa 3/2 sold NEW last week for $330,000 and would require upfront approx. $75,000. Mortgage with taxes and insurance is just under $2,000. You can rent this home for $2100 a month long term and keep your $75,000. When things break it is the landlord that takes the hit not you. Find a home you like with a landlord you like and go long-term. Rent for 5 years and put your $75,000 in good stocks or mutual fund and in 5 years you end up with over $100,000 if you earn just 6%. If you plan on living here more than 10 years then you may confided buying as the home appreciation may offset your costs. Less than 10 I would consider renting.

two good answers

jg
 

We rented a villa for 3 summers in a row. That gave us the opportunity to meet full time residents, ask questions, learn the area, Researched ins co., bonds, new opposed to resale. I'm very glad we did take those months to decide rather than buying immediately. It gave us the time to decide if the Villages was the right place for our wants, needs.

You forgot to mention, what to me, are the two biggest advantages of ownership.
#1 EQUITY! If you buy a home and you decide to move you get at least part of your money back and often more, with appreciation. Even if you have a mortgage, part of what you pay goes toward the principal and that belongs to you. If you have a little extra, you can pay more than your monthly payment each month and create more equity for yourself. At the end of a lease, you have nothing but moving expenses.
#2 Unless you go for an ARM, your monthly payment will never increase. It's usual for rent to increase annually. But with a mortgage, as you income increases, your housing cost are a smaller percentage of your income each year.

There is no comparison between renting and leasing real estate.

Renting is great ..... do it until you know the area and where you want to buy. Its also less expensive if you are staying for only one of two months.

Once you know you want to be here for four months or more, purchasing becomes more economical - especially if you can declare Florida residency from a state with an income tax.