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/)
-   -   New Home Gouging? (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/new-home-gouging-92907/)

Bogie Shooter 10-30-2013 02:34 PM
Quote:
Originally Posted by Villages Kahuna (Post 770440)
The fact that The Villages is nearing build-out has not escaped the attention of buyers, of both new and pre-owned homes. The state of the financial markets and interest rates is supportive of a buying decision by people who have decided they want go live here and don't want to be "left out". There's a reason why 300-400 new homes are being built and sold each month.

The prices on pre-owned homes have escalated as well. Zillow's estimate of the value of my own home has increased by almost 20% in the last year alone! I'm sure that's an underestimate as Zillow has no way of incorporating the value of premium lots into their estimates. Friends of ours recently sold their well-located and completely professionally furnished courtyard villa in only one day for $48,000 more than their asking price. Three bidders had an intense bidding war until there finally was a winning buyer.

How much of that sales premium was an initial underpricing and his much was buyer exuberance? All I can say is that the initial asking price was well supported by recent comps. Our friends were quite satisfied with the agreed upon asking price and their neighbors thought it was grossly overpriced.

Frankly, I doubt that the developer has increased their target profit margins. They've remained at about 27% for a long time. I do believe that the cost of land and construction materials and labor has increased however. Take a look at the bonds on newer houses compared to those built several years ago. The bond is straight ad valorem split of the cost of utility construction and reflects only the cost of installing utilities, no profit included. We have a Lantana and the bonds on new Lantanas being built in the new southern end of The Villages are more than double our bond on our seven-year old home.

While the developer might have pulled back on any sales discounts or spiffs as now being unnecessary to sell houses, I doubt very much that they are purposely gouging new buyers.
The size of the home has nothing to do with determining the size of the bond.
Cost of the infrastructure and the number of units in the district are the primary basis for determining the bond amount.

e-flyer 10-31-2013 07:55 PM
Quote:
Originally Posted by Villages Kahuna (Post 770440)
Frankly, I doubt that the developer has increased their target profit margins. They've remained at about 27% for a long time.
Now I see why the Morse's are multi-billionaires. If you take the average of the current house sale prices, $200k x 300 sales per month thats $15 million a month profit. But to that aspect, I say good for them! They had the vision, took the risks, and are now reaping the benefits for their hard work.

Bonny 10-31-2013 09:16 PM
Quote:
Originally Posted by e-flyer (Post 771990)
Now I see why the Morse's are multi-billionaires. If you take the average of the current house sale prices, $200k x 300 sales per month thats $15 million a month profit. But to that aspect, I say good for them! They had the vision, took the risks, and are now reaping the benefits for their hard work.
And we are living the dream !! :D

ganative 10-31-2013 09:43 PM
Let's not forget about the approximately 7 million a month in amenity fees taken in, I'm wouldn't be surprised if there's a couple of million a month profit there as well. Kudos to them for some wise choices. Plus all the side businesses....of geez. ......

Villages Kahuna 10-31-2013 10:05 PM
I Would Differ, At Least Regarding Sumter County
 
Quote:
Originally Posted by gpirate (Post 770202)
....Disadvantages to present home owners: Your taxes will be going up as values continue to increase.
I might differ a bit with you on this one, at least on the reason for increased real estate taxes.

My taxes have declined each year that I've lived here, a condition that can't and won't continue. The reason is that real estate taxes are assessed in arrears and so long as The Villages continued to grow at a rapid rate, taxes were being collected on more homes than were the basis of the total assessed valuations which were the basis of the budget. As TV grew at a rate faster than increased spending voted by the county board and the school district, taxes declined. That won't continue as The Villages approaches build out.

But over the last 6-7 years I have observed a very conservative county board which has produced superb services without overspending. They have been very selective and very thoughtful regarding county spending. So while taxes are likely to increase as The Villages builds out, from what I've observed I'd be surprised if it was more than the rate of general inflation. I'd be willing to bet that this county board won't spend just because they are receiving more tax receipts resulting from escalating home values.

villagerjack 10-31-2013 10:09 PM
A very nice Courtyard Stoneybrook GC lot on Kenya 4 large Corner lot Bonjta Villas off Canal and Bonita Blvd is for sale for $349,900. Great condition. Not mine.

Villages Kahuna 10-31-2013 10:10 PM
Correct
 
Quote:
Originally Posted by Bogie Shooter (Post 771177)
The size of the home has nothing to do with determining the size of the bond.
Cost of the infrastructure and the number of units in the district are the primary basis for determining the bond amount.
You're right. I confused the explanation by using the term ad valorem.

Bogie Shooter 10-31-2013 10:15 PM
Quote:
Originally Posted by ganative (Post 772037)
Let's not forget about the approximately 7 million a month in amenity fees taken in, I'm wouldn't be surprised if there's a couple of million a month profit there as well. Kudos to them for some wise choices. Plus all the side businesses....of geez. ......
There is no profit on amenity fees..........the budget's can be reviewed.

mrfixit 10-31-2013 10:38 PM
Quote:
Originally Posted by ganative (Post 772037)
Let's not forget about the approximately 7 million a month in amenity fees taken in, I'm wouldn't be surprised if there's a couple of million a month profit there as well. Kudos to them for some wise choices. Plus all the side businesses....of geez. ......
Let us not forget the nearly $ 700,000.00 per day that it costs to
operate this place called The Villages.

The ENTIRE Budget and Comprehensive Accounting-of-Distributions
is public record and can be reviewed by anyone.

buggyone 11-01-2013 01:01 AM
Quote:
Originally Posted by justjim (Post 769895)
A friend of mine closed on his home just six months ago in TV. He "swears" that prices on an exact Designer home like his has gone up in price 30% in the last six months. He says, "The Developer is gouging people".

$250,000 Designer home with a 30% increase would now cost $325,000. My friend is convinced this is true and I have no reason not to believe him as He is not one to make "things" up. I have no valid data to back him up.

Assuming this is correct, is the Developer gouging people on new homes? :shrug:
Gouging? How about making a good profit from an excellent product? Housing prices have gone up nationwide - thanks to a robust economy and consumer confidence.

I give "big props up" to the Developer and he is helping all of us.

mickey100 11-01-2013 06:42 AM
Quote:
Originally Posted by ganative (Post 772037)
Let's not forget about the approximately 7 million a month in amenity fees taken in, I'm wouldn't be surprised if there's a couple of million a month profit there as well. Kudos to them for some wise choices. Plus all the side businesses....of geez. ......
Let's not forget they took the risks on the CDD bonds i.e. IRS business. Wonder if they are going to pay the fines/reissue the bonds, or are the residents going to get stuck with any penalties that accrue? Yes, as Villagers we're living the dream, but thanks to the developer's "business acumen" we may end up paying through the teeth for it. That may have a negative effect on home prices.

graciegirl 11-01-2013 07:03 AM
Quote:
Originally Posted by mickey100 (Post 772091)
Let's not forget they took the risks on the CDD bonds i.e. IRS business. Wonder if they are going to pay the fines/reissue the bonds, or are the residents going to get stuck with any penalties that accrue? Yes, as Villagers we're living the dream, but thanks to the developer's "business acumen" we may end up paying through the teeth for it.

That's o.k. We have the other government.

villagerjack 11-01-2013 07:37 AM
Quote:
Originally Posted by mickey100 (Post 772091)
Let's not forget they took the risks on the CDD bonds i.e. IRS business. Wonder if they are going to pay the fines/reissue the bonds, or are the residents going to get stuck with any penalties that accrue? Yes, as Villagers we're living the dream, but thanks to the developer's "business acumen" we may end up paying through the teeth for it. That may have a negative effect on home prices.
For one months amenity fee my wife and I can play golf a single time in NY if we cough up another $20.00 bucks. That's the reality.

Challenger 11-01-2013 08:29 AM
Rumor Mongers , Conspiracy Theorists, and those who are "agin it" will always be with us. They seldom reasearch the facts before posting and often put thier typing fingers in motion before putting their brains in gear. JMHO

justjim 11-01-2013 09:00 AM
It's relative
 
Quote:
Originally Posted by villagerjack (Post 772116)
For one months amenity fee my wife and I can play golf a single time in NY if we cough up another $20.00 bucks. That's the reality.
Someone once said, "everything is relative". How true that is with the diversity of people coming from various regions of our great country.

In the Midwest where I was raised and spent most of my working years, the price of golf this summer was (high season there) $30.00 to $50.00 for 18 holes and a cart on some very nice public golf courses. After labor day you can play the same courses for about half.

$250,000 will buy you a very nice home in a safe and comfortable subdivision.

Of course there are Private Clubs where the costs are much higher and you can buy homes on those courses for $500,000 up to several million. Only a few can afford this standard of living.

Bottom line, Here you can buy a home for $100,000, $300,000 or a million. But we all pretty much can enjoy the same amenities. Is this a great place or what?

Only time will tell if a 325,000 designer home can be sustained in TV. IMHO it will be after build-out before we will know. Some think about half of us will have putted or last putt or danced or last dance by then. Fore! Oh, the other half don't really care. :ho:


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