[WiscoDogsDad]

Originally Posted by CoachKandSportsguy

People who live and die by budgets and spending have money control issues. many have a paycheck to paycheck mentality of control. Its a planning illusion, but many have it, but its comforting to them to stay in financial control.

I have seen worse money behaviors in my family. I have seen a husband put his wife on an allowance so he controls all the money. I have seen a husband make his wife get a part time cashier job for her spending money, while he buys $80K trucks he doesn't need. I have seen people complain about paying taxes for being successful, so that they don't want to look wealthy, ie, can join in the complaining and look for handouts. I have seen people get angry about getting free stuff they don't need. I have seen people throw out itemized VISA bills and kept the monthly VISA payment check as proof of spending for tax deductions, such as medical expenses. .

If people are worried about running out of money, either they are neurotic about money or are living above their means. .

with finance(not accounting) maintenance is a funny expense. . Ask the consultants who routinely advise to cut maintenance since nothing bad has happened with a good maintenance plan.

either you save for it knowingly, or you pay as you go and take a bit more out of the IRA/savings than normal. . but its also a good way to see when you run out of money in the very, very long run. . of course they may not live that long, but no one knows when the end may come.

Thanks, Coach.

Please see my reply to Brian if you like. Have a fabulous day!

[LeRoySmith]

Originally Posted by CoachKandSportsguy

its comforting to them to stay in financial control

either they are neurotic about money or are living above their means

I think you're on something here.

I don't run on a strict budget but I do watch money like a hawk. I have always been very concerned about money, to the point of suffering now so that I can live well later - the trouble is I'm old as the hills and later may never arrive. I think this is the result of having depression age parents and starting with less than nothing. I have worked hard, saved hard, been really careful with money and lucky with investments. I always tell people (mostly my kids and wife) 'the wealthy stay wealthy by acting poor, the poor stay poor by acting wealthy'. I'm not sure where I stole that saying but I think there's a lot of truth to it.

We live well below our means but that doesn't stop me from wanting to watch money closely.

[bshuler]

Originally Posted by WiscoDogsDad

Have not heard of that exemption. Will investigate and talk to my father to find out if he's leveraging it....many thanks!

I have been told the first thing to do after closing is head to the courthouse and file that Florida Homestead Exemption.

It will remove $50,000 of the taxable amount of your property. For example, if your property's taxable value is $300,000, you would only be taxed on $250,000. I haven't done this.. so correct me if this wrong.

When someone owns property and makes it his or her permanent residence or the permanent residence of his or her dependent, the property owner may be eligible to receive a homestead exemption that would decrease the property’s taxable value by as much as $50,000.

Also .. The BIG one.. The Homestead exemption includes the SOH Assessment Limitation. This limits the amount of tax increase your property can be assessed for a few years. The PDF document for this is here.

After the first year a home receives a homestead exemption and the property appraiser assesses it at just value, the assessment for each following year cannot increase more than 3 percent or the percent change in the Consumer Price Index (CPI), whichever is less.

[tophcfa]

Originally Posted by bshuler

I have been told the first thing to do after closing is head to the courthouse and file that Florida Homestead Exemption.

It will remove $50,000 of the taxable amount of your property. For example, if your property's taxable value is $300,000, you would only be taxed on $250,000. I haven't done this.. so correct me if this wrong.

When someone owns property and makes it his or her permanent residence or the permanent residence of his or her dependent, the property owner may be eligible to receive a homestead exemption that would decrease the property’s taxable value by as much as $50,000.

Also .. The BIG one.. The Homestead exemption includes the SOH Assessment Limitation. This limits the amount of tax increase your property can be assessed for a few years. The PDF document for this is here.

After the first year a home receives a homestead exemption and the property appraiser assesses it at just value, the assessment for each following year cannot increase more than 3 percent or the percent change in the Consumer Price Index (CPI), whichever is less.

You are referring to the “screw the part time resident exemption”. The county is going to raise the money they need regardless, so guess who makes up the difference. All else being equal, why should the taxes on a homeowner be different depending on how much time they spend at the home? A reasonable argument could be made that part time residents should pay less taxes because they tend to use less county funded services!

[CoachKandSportsguy]

Originally Posted by LeRoySmith

I think you're on something here.

I don't run on a strict budget but I do watch money like a hawk. I have always been very concerned about money, to the point of suffering now so that I can live well later - the trouble is I'm old as the hills and later may never arrive. I think this is the result of having depression age parents and starting with less than nothing. I have worked hard, saved hard, been really careful with money and lucky with investments. I always tell people (mostly my kids and wife) 'the wealthy stay wealthy by acting poor, the poor stay poor by acting wealthy'. I'm not sure where I stole that saying but I think there's a lot of truth to it.

We live well below our means but that doesn't stop me from wanting to watch money closely.

I am planning on having dinner with you in January.

I think this is the result of having depression age parents and starting with less than nothing. I had depression era parents as well. They didn't assimilate into the modern technology world very well. Most depression era survivors didn't emerge with much BUT their skills and work ethic. I can't image living in the era, but it will happen again some day.

If the image of spending is uploaded, that is the tax deductions for the house being a rental in an LLC. Much different than just spending time doing accounting work 'cause I love it.

note that I just had major buckets of spending.
and the maintenance saving are again estimates, sh!t can happen at any time.

So for us, Social Security will be 70K+
housing cost at $25K per year
leaves enough for groceries, and some retirement vacations!

groceries can eat up a lot more of the budget than one might think
$400 per week = $20K per year. . almost as much as the cost of the house!

[WiscoDogsDad]

Originally Posted by LeRoySmith

I think you're on something here.

I don't run on a strict budget but I do watch money like a hawk. I have always been very concerned about money, to the point of suffering now so that I can live well later - the trouble is I'm old as the hills and later may never arrive. I think this is the result of having depression age parents and starting with less than nothing. I have worked hard, saved hard, been really careful with money and lucky with investments. I always tell people (mostly my kids and wife) 'the wealthy stay wealthy by acting poor, the poor stay poor by acting wealthy'. I'm not sure where I stole that saying but I think there's a lot of truth to it.

We live well below our means but that doesn't stop me from wanting to watch money closely.

LeRoy,

With your permission, I'm going to steal that quote....it suits my perspective.

I'm acting poor....

[LeRoySmith]

Originally Posted by WiscoDogsDad

LeRoy,

With your permission, I'm going to steal that quote....it suits my perspective.

I'm acting poor....

I shamelessly steal great ideas and encourage others to do the same.

[justjim]

Originally Posted by WiscoDogsDad

HOWDY!

My plan is to be a Villages home owner by the end of next summer. I'm a planner.

I have a spreadsheet started, for estimated/budgeted costs of maintaining the home....this spreadsheet is ONLY about the house...not food, not clothing, not entertainment/lifestyle.

It is...as far as I know...fairly comprehensive as it's been compiled with the help of my ten-year Villages veterans....my parents.

If you were blindsided by any monthly home costs, I would appreciate your insight.

You have my appreciation, in advance.

Monthly home costs was not blindsided. At closing, the actual closing cost I was because the costs in Florida were much higher than any closing cost I ever paid in Tennessee or Illinois.

[bshuler]

Originally Posted by sallyg

If you buy a new home there will be an annual bond payment and probably a maintenance fee. The sales staff may gloss over these expenses, but ours turned out to be over $2000/year, and that is on the low side. (Purchased our home approx 10 yrs ago).

On bonds for new homes..
There are 5 new Designer Home models announced this week. Several are for sale in the far south of Moultrie Creek (Andrew Machol Ct) in the village of Shady Brook.
Their bond is 222V Sumter County. The bond is over $50,000 at 5.15% interest that's $230 a month. Patio Villa is half that in same area.

[Bwanajim]

Your estimate for electricity seems low. Depends on the size of your house. Mine averages about 225 a month at my house is 1900 ft.².

[CoachKandSportsguy]

Originally Posted by Bwanajim

Your estimate for electricity seems low. Depends on the size of your house. Mine averages about 225 a month at my house is 1900 ft.².

all depends upon which electric supplier you have,
DUKE or SECO

All depends upon whether you have a pool or how hard your air conditioner has to work. along with a few other usage items. .

So you need to be a bit more specific about your higher monthly payment.

its never just right or wrong. .

[BrianL99]

Originally Posted by tophcfa

You are referring to the “screw the part time resident exemption”. The county is going to raise the money they need regardless, so guess who makes up the difference. All else being equal, why should the taxes on a homeowner be different depending on how much time they spend at the home? A reasonable argument could be made that part time residents should pay less taxes because they tend to use less county funded services!

In South Carolina, they have an interesting Real Estate Tax system. I looked at a gorgeous home for sale on a lake, with 2 golf courses (before I bought in TV). The house was about $400K. Taxes on the home as a "non-resident" would have been about $6500 year. If I was an actual "resident" of the state, taxes would have been about $2500. It seems that Residents of a home do not pay for any part of the school budget (although they're the ones who are likely to have school age children). Only part-time residents and investors pay for the schools. Also, "owner occupied" homes at taxed at a valuation of 4% vs 6% for investor owned or 2nd homes.

(I'm fairly certain I have those facts mostly correct. When I heard about it, I stopped paying attention and focused on buying in another state.)

Apparently it's the only state that does this.

[Flamingo2]

I would plan a significant allowance for eating out, including drinks! The first year or two you live here you will likely have a very active social life!

[mrf6969]

Originally Posted by Bwanajim

Your estimate for electricity seems low. Depends on the size of your house. Mine averages about 225 a month at my house is 1900 ft.².

Holy Moly, $225 a month? Our 2100 square foot home around Sumter is half of that, now.
You have a swimming pool? Hot tub?

[Michael 61]

I think electric is a bargain here - I lived in Las Vegas for a few years in the late 90s, and my monthly summer electric bill reached over $500 several times. (And that was for a 2-bedroom condo)