[MrChip72]

Originally Posted by dewilson58

Sad if a retired person purchases in TV and has a mortgage.

Most people that are even moderately savvy with with finances would consider that a misguided take to be honest especially if their mortgage rate is 3-4%. You can beat that rate moderately with a variety of extremely safe investments currently, and beat it by a lot long term invested in index funds.

It's better to optimize your money than have it 100% tied up in real estate making you zero returns. Many of the world's billionaires don't own most of their homes outright.

[hifred123]

We are 2 retired teachers that came to the Villages in 2019. If we had to buy our home now it would cost more than what we paid in August 2019 when we bought it. But the home we sold in 2019 also has gone up in value so to me it would be a wash. We would have received more from the sale of the home and bought in TV at today's prices. I am not sure what the author of this thread is getting at. The prices have risen here but that is true of many places. I can sell my home in TV for more than I paid for it. So why do they think buyers wouldnt be able to afford now and what is the point about falling prices?. Given the majority of people are selling a home and then rebuying here don't the prices cancel out.? Mortgages cost more now but a lot of people who sell their homes to buy here dont depend on getting a mortgage. I dont agree with the thread author.

[huge-pigeons]

Why is it a good thing for an asset I own to come down in price/value so somebody else can afford to move here? Makes no sense at all!! That’s like saying it’s ok for my Apple stock to tank so somebody else can buy shares. I want all my assets to grow in value, and if somebody can’t afford to buy in this market, then they should look elsewhere

[Zenmama18]

Originally Posted by dewilson58

I think my first mortgage was 12%. OUCH!!!!

Ours was 12 3/8% and we felt lucky to get that!

[dewilson58]

Originally Posted by MrChip72

Most people that are even moderately savvy with with finances would consider that a misguided take to be honest especially if their mortgage rate is 3-4%. You can beat that rate moderately with a variety of extremely safe investments currently, and beat it by a lot long term invested in index funds.

It's better to optimize your money than have it 100% tied up in real estate making you zero returns. Many of the world's billionaires don't own most of their homes outright.

That's an investment decision............NOT what I'm talking about.

Love the billionaire justification.

[dewilson58]

Originally Posted by CoachKandSportsguy

That is all based upon the assumption that there is no abnormal event your assumed risk profile of your investments can't withstand. Investments are an inherently risky holding, and assuming that the current rates and levels will continue through the life of the decision is the uncertainty that many people do not want to take.

I want the house free and clear, and not have to assume that all my investments can withstand any unforeseen event. I have lost everything once, that is not happening again, and I am not the only one who can get surprised by unforeseen events.

remember, as with all things in life, everything works fine, until it doesn't.

There you go again....................Sound financial advice / experience.

[Sheri]

Are you a sales agent for The Villages? I’m wondering how you got these numbers for current preowned and new homes?

[Lovey2]

...

[jimbomaybe]

Originally Posted by MrChip72

Most people that are even moderately savvy with with finances would consider that a misguided take to be honest especially if their mortgage rate is 3-4%. You can beat that rate moderately with a variety of extremely safe investments currently, and beat it by a lot long term invested in index funds.

It's better to optimize your money than have it 100% tied up in real estate making you zero returns. Many of the world's billionaires don't own most of their homes outright.

I don't know how anyone could argue with your logic , I have no qualifications as a financial planner but I think anyone so qualified would advise anyone buying a home to take advantage of the dramatically low 30 year interest rates , risk is unavoidable, home ownership has been historically a low risk proposition, that's why mortgage rates are lower than most other types of credit, when you take a mortgage at a 2 to 3% area the entity providing the funds are taking all the risk, anyone one would be much better off taking as large a mortgage as their cash would allow

[BoatRatKat]

Agree.

[GATORBILL66]

My designer home has doubled in value since I purchased it in March of 2020!

[Normal]

Originally Posted by GATORBILL66

My designer home has doubled in value since I purchased it in March of 2020!

Sell it now. Redfin just released data determining that demand for housing in Florida is at a 7 year low! Cash in while you can. We are just entering crash mode. Just look at the Villages website for homes. Things are starting to look ugly.

[FredJacobs]

According to the demographics that the Daily Sun sends out to advertisers, over half the sales are paid in full without a mortgage.

Think about it - you bought a house up North, in the '70's for $40K. You are much older, the kids are on their own, you can't stand the cold, etc. so you sell for about $700K and, after expenses, you net $600K profit. The first $500K is non-taxable so, you pay $20K tax on the remainder. You now have $580K - plus savings - to spend for a new house in a warmer climate.

Put 50% to 65% down, get a very low interest, pay what the higher interest rate required and you can be mortgage free very quickly.

[Marine1974]

Originally Posted by dewilson58

Sad if a retired person purchases in TV and has a mortgage.

Not if your mortgage rate is 2.399% and you’re earning 8 % on the money you didn’t use to pay cash for a home . It’s called smart not sad . Plus you can write off interest and taxes .and any energy efficient equipment you add to your home .

[dewilson58]

Originally Posted by Marine1974

Not if your mortgage rate is 2.399% and you’re earning 8 % on the money you didn’t use to pay cash for a home . It’s called smart not sad . Plus you can write off interest and taxes .and any energy efficient equipment you add to your home .

Dude, that's an investment decision...........not what I'm talking about.

If you want to leverage, leverage.............I don't care.