Talk of The Villages Florida
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Talk of The Villages Florida (https://www.talkofthevillages.com/forums/)
-   The Villages, Florida, General Discussion (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/)
-   -   Dropping Home Prices in TV is a Good Thing (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/dropping-home-prices-tv-good-thing-344602/)

Randall55 10-07-2023 07:26 PM
Quote:
Originally Posted by dewilson58 (Post 2263330)
Sad if a retired person purchases in TV and has a mortgage.

:popcorn:
Not if your mortgage rate is 2.5% and investments earn over 5%. I think this may be one reason people are not buying at the moment. Who can blame them?

I know several people who are waiting to buy homes near Eastport. They want to be closer to the championship golf courses and the square. They realize those homes will be a better investment than the surrounding preowned homes.

manaboutown 10-07-2023 08:02 PM
"In fact, although he was already very wealthy, Buffett himself used a 30-year mortgage in 1971 to finance the $150,000 purchase of a vacation home because he thought he could do better with the money than the interest he was paying for the house. (Note: Mortgage rates were in the 7.3% to 7.7% range in 1971)."

From: Here's Why Warren Buffett Thinks Using a Mortgage Is a Smart Move

Robbb 10-07-2023 09:23 PM
Quote:
Originally Posted by Normal (Post 2263515)
Many houses were likely bought up by salespeople working for the Villages. They have first dibs and it’s time to turn for profit. Look for more of the same in 115.
Are the sales people allowed to buy this homes as rentals? I was told they are sold to he first person who puts an offer in at 8am the day they go on the market.

Normal 10-08-2023 04:02 AM
Yes
 
Quote:
Originally Posted by Robbb (Post 2263534)
Are the sales people allowed to buy this homes as rentals? I was told they are sold to he first person who puts an offer in at 8am the day they go on the market.
Of course they are. They get the cream off the top. They know what is a good buy and what isn’t. In most cases they buy the homes and rent them for a year, then the home is resold. Salespeople just put their name in, if they want a house it’s theirs. Why would you even think otherwise? The investment corporate boogeyman exists, but holds nothing up to a certain group of salespeople who work for The Villages. If they want a house, you won’t have a chance at it. It’s a perk.

Just think of it as legal insider trading that hasn’t ever been addressed and few know the market as well as your “friendly” Villages salesperson.

Two Bills 10-08-2023 04:16 AM
Never been keen on personal debt, but a wise man once told me to never pay off a loan, if the amount was earning more when invested.
Lived by that all my working and earning days.
The advice never let me down.
Thanks Uncle Joe!

Jhnidy 10-08-2023 04:28 AM
Quote:
Originally Posted by dewilson58 (Post 2263330)
Sad if a retired person purchases in TV and has a mortgage.

:popcorn:
You have to put the money someplace. Mortgages are cheap. The money can make more elsewhere

Kelevision 10-08-2023 04:31 AM
Quote:
Originally Posted by dewilson58 (Post 2263353)
I did.

I said, "It's sad"

:thumbup:
Why do I want 400k tied up in a house that I’m not taking with me?

asianthree 10-08-2023 05:16 AM
Quote:
Originally Posted by Randall55 (Post 2263518)
Not if your mortgage rate is 2.5% and investments earn over 5%. I think this may be one reason people are not buying at the moment. Who can blame them?

I know several people who are waiting to buy homes near Eastport. They want to be closer to the championship golf courses and the square. They realize those homes will be a better investment than the surrounding preowned homes.
It’s hard for certain ages to see the bigger picture, of one can make more money by investing, and use OPM mortgages money.

My parents are that age bracket, use all your cash so you don’t have a mortgage. Problem is money doesn’t grow, until house is sold. Usually upon death, so one is sitting on debt free house, with no tax write off, and unless they take out a equity loan (which is 12.5%) money is stagnant.

Our financial guy for the last 6 houses, always has us take large mortgage, 30-60 days pay down 30- 50% or more, especially when rates are above 4%. All the while our investments are making us money, more that the interest debt.

So no matter what interest rate is, your monthly interest is reduced by half and then some. Re-amortization of payments for $175.

ROCKETMAN 10-08-2023 05:27 AM
I have a lot of friends who have mortgages. According to citizens bank approximately one third of villagers have mortgages for different reasons. Some people think everyone in the villages is a millionaire. Biggest reason some have mortgages is between 2011 and 2020 the s and p averaged 14.9 percent gain. In this time frame everyone got a 3 per cent mortgage or re financed their current mortgage to 3 per cent. Paying 3 percent and getting a 15 per cent return made sense. Now with the market and rates may not make that decision.

Rwirish 10-08-2023 05:39 AM
Retire with a mortgage? Not a good move.

BrianL99 10-08-2023 06:11 AM
Quote:
Originally Posted by asianthree (Post 2263556)
It’s hard for certain ages to see the bigger picture, of one can make more money by investing, and use OPM mortgages money.

My parents are that age bracket, use all your cash so you don’t have a mortgage. Problem is money doesn’t grow, until house is sold. Usually upon death, so one is sitting on debt free house, with no tax write off, and unless they take out a equity loan (which is 12.5%) money is stagnant.

Our financial guy for the last 6 houses, always has us take large mortgage, 30-60 days pay down 30- 50% or more, especially when rates are above 4%. All the while our investments are making us money, more that the interest debt.

So no matter what interest rate is, your monthly interest is reduced by half and then some. Re-amortization of payments for $175.
Some ages, just don't have a clue ... but they're never in doubt.

GizmoWhiskers 10-08-2023 06:21 AM
Quote:
Originally Posted by Craig Vernon (Post 2263319)
The Villages success is based upon likeminded folks that save and move to a beautiful place to reward a lifetime of effort. The last few years have priced homes out of many savers range and moved sales into an elevated investment cycle that hurts the environment for snowbirds and full-time residents. As the place we love becomes a less desirable investment many of the problems that have come with it simply go away. This morning's listings Zillow 384, TV preowned 394, TV new 314 and growing. This is the largest number of listed new construction since I started keeping track in 2020 and just short of twice the number which was 199 in January of this year. I asked the Village Newcomers Jerry and Linda on their YouTube channel if they would or could have moved here if prices were where they are now. The answer was "No," and they are a prime example two retired teachers with pensions coming to their happy place. See you all in February. Have a Great Day!
The Village Newcomers are hardly new comers. 2020 they said "The wind never blows in The Villages". A neighbors outside grill was lifted up and hit the eve of the house. It was a beautiful day without a cloud in the sky. They lost all credibility in my mind lol.

I stopped watching their videos. They WERE "new comers". They are building an audience and with that revenue just like ToTV. Some stuff is informational but it's still opinion to be digested like a grain of salt.

As far as the pricing in The Villages... it's a sellers market where those in charge have not tanked their city/state economy. Interest rates have done the rest of the damage for buyers as many have better interest frates from the PAST. How to fix that, oh, dare I say elections matter... even at the local levels.

newgirl 10-08-2023 06:31 AM
Quote:
Originally Posted by dewilson58 (Post 2263345)
I think my first mortgage was 12%. OUCH!!!!


In 1984 they were 24% when I bought my first home. We were able to do a wrap loan that brought it down to 13.5%

huge-pigeons 10-08-2023 06:32 AM
Not everyone needs to retire here. You are asking the residents here to sacrifice some of their wealth (home asset worth) to allow others to move in.
If people can’t afford it, then they need to look at places where they can afford it. I wouldn’t want to see people move here that then can’t afford to keep their house looking good because their mortgage is killing them to repay.
But if I was looking, I would like this downturn with higher interest rates because I would just pay cash, IMO, most retirees should pay cash for their home.

Mrfriendly 10-08-2023 06:54 AM
Quote:
Originally Posted by dewilson58 (Post 2263330)
Sad if a retired person purchases in TV and has a mortgage.

:popcorn:
Unless the person wanted the 2.5% mortgage and choose not to liquidate much of their savings.


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