Purchase now, Rent now, move later?

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Old 07-16-2019, 07:10 PM
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Default Purchase now, Rent now, move later?

The wife and I have officially started our 5-year plan for an early retirement, basically our plan is to retire when I am 65 and she is in her late 50’s. From a financial perspective we should be fine with enough income from investments and reduced SS for a modest, yet comfortable living. We currently own a beautiful custom home in Daphne, AL that we purchased new construction in 2015. The property values have skyrocketed in our area, in less than 5 years the value of our home has increased almost $75k from the original purchase price.

We currently have a short list of two “Active Adult” communities we are considering for relocation. The Villages (TV) as of this moment is my top choice, the wife favors a community in Arizona. We have done quite a bit of research over the last several months on these communities especially when it comes to the “rent first or buy now question”.

Assuming we BOTH agree on TV, we would love to duplicate the style of home we have now, just in a “smaller scale”. Checking available resell homes at current listing prices, we can easily meet this requirement. However, that may not be the case several years from now if home prices in The Villages increase at similar rates we are experiencing in Daphne, AL. The idea that I am kicking around now is to cash out some low performing stocks and use the funds to purchase property in The Village’s now then rent it out for some positive income until we are ready to make the move permanently.

I have spoken with a coupe of financial advisers and the feedback I have received is not very helpful in either direction, any advice at this stage from TV owners who are in a similar situation would be most appreciated, thank you in advance!

Vin & Laurie
Daphne [Sweet Home] Alabama
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Old 07-16-2019, 07:38 PM
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Velvet Velvet is offline
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Rent first, in both places so you can compare. The husband and I looked at Scottsdale, Arizona as it has a vibrant artist community which I absolutely adore, but summer temperatures there are hotter than Hades and the dry heat doesn’t make it easier. We checked out TV in the summer too (at its least delightful weather). I figured if my hubby can take it then, he’ll love it the rest of the time.

If you are concerned about possible price increases, rent first to determine if both of you are ok with the area and lifestyle and then you can buy and rent your house to others until you can retire to it.

Last edited by Velvet; 07-16-2019 at 08:00 PM.
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Old 07-16-2019, 08:42 PM
VJBama VJBama is offline
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Buy a rental, that what we do from the extreme north of 'Bama. Fairly easy to manage yourself. You can rent unfinished as a long term unit or as a furnished monthly property.

Once in TV you will have to refrain from laughing at those who claim Florida property taxes are low. They are triple the Heart of Dixie state property tax rate.
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Old 07-16-2019, 09:47 PM
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Buy a rental, that what we do from the extreme north of 'Bama. Fairly easy to manage yourself. You can rent unfinished as a long term unit or as a furnished monthly property.

Once in TV you will have to refrain from laughing at those who claim Florida property taxes are low. They are triple the Heart of Dixie state property tax rate.
That's basically what I was thinking, favoring short term renting versus long term if we decide to purchase now. The wife and I are traveling to TV this Thursday AM for an extended weekend so she can get acclimated to the area and to see a few open houses, two of them are "turnkey" should be interesting.

I am native to Florida, born and raised in West Palm Beach, Boca Raton area, lived 5 years in the Keys and in Daytona Beach area before moving to AL so I am familiar with the property tax shock. When I got my quote in 2015 for the house we have now in AL I though the quote was a quarterly payment amount, not yearly.

Appreciate your input!
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Old 07-17-2019, 07:12 AM
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Originally Posted by vin_laurie View Post
That's basically what I was thinking, favoring short term renting versus long term if we decide to purchase now. The wife and I are traveling to TV this Thursday AM for an extended weekend so she can get acclimated to the area and to see a few open houses, two of them are "turnkey" should be interesting.


Appreciate your input!
A reasonably managed monthly rental will rent nine to ten months a year. People here are quick to tell a tale on renting every month but it almost never happens.

If you do not pay attention to two things you can expect to rent five months.

The two things are:
-see everything from a renter's perspective
- pay attention to details

It sounds obvious but most owners do not get professional pictures, answer all inquiries within 30 minutes, writing the property description to answer renter's questions before they even ask them. Use VH4R dot come to list your home.
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Old 07-17-2019, 11:10 AM
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Good luck!

Last edited by Velvet; 07-17-2019 at 11:38 AM.
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Old 07-22-2019, 03:09 PM
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Default Purchase now, Rent now, move later - PART TWO

After an extended 5 day trip of viewing over 20 homes in 3 retirement communities, the wife and I do not agree on a first-choice area. She favors Ocala’s On Top Of The World and the layouts of their Premier Series models instead of any of the resells or new construction we were considering in The Villages.

On Top Of The World has several “move in” ready homes that were optioned out very similar to the home we have now. They also have spec homes planed with the same option packages scheduled for availability early 2020. They also offered onsite rental management for investment purchases and selling assistance of current home with rebate on closing of new home, a very interesting package deal.

If we were considering a retirement home based on exterior / interior options that are basically aesthetics only, I would strongly insist in NOT moving anywhere since the home we have now is aesthetically perfect inside and out. The “our current house is too big…” complaint is the wife talking, not me, I pay for weekly yard service and I have no problems paying for maid service either.

The key factor in the decision to move from our current home is the “active adult lifestyle” options that would be available to us if we moved to a community like The Villages. On Top Of The World as an active adult retirement community has much to offer and would be a good choice, however, in my opinion I am looking for more and The Villages simply offers the widest scope of active adult lifestyle options. Getting the wife to understand this concept and ignore the home aesthetics topic is going to be a bit harder than expected.

The only thing we both agree on at this stage is removing Margaritaville in Daytona Beach immediately off the list of retirement communities, if you need to know why just ask.
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Old 07-24-2019, 12:04 AM
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Quote:
Originally Posted by vin_laurie View Post
After an extended 5 day trip of viewing over 20 homes in 3 retirement communities, the wife and I do not agree on a first-choice area. She favors Ocala’s On Top Of The World and the layouts of their Premier Series models instead of any of the resells or new construction we were considering in The Villages.

On Top Of The World has several “move in” ready homes that were optioned out very similar to the home we have now. They also have spec homes planed with the same option packages scheduled for availability early 2020. They also offered onsite rental management for investment purchases and selling assistance of current home with rebate on closing of new home, a very interesting package deal.

If we were considering a retirement home based on exterior / interior options that are basically aesthetics only, I would strongly insist in NOT moving anywhere since the home we have now is aesthetically perfect inside and out. The “our current house is too big…” complaint is the wife talking, not me, I pay for weekly yard service and I have no problems paying for maid service either.

The key factor in the decision to move from our current home is the “active adult lifestyle” options that would be available to us if we moved to a community like The Villages. On Top Of The World as an active adult retirement community has much to offer and would be a good choice, however, in my opinion I am looking for more and The Villages simply offers the widest scope of active adult lifestyle options. Getting the wife to understand this concept and ignore the home aesthetics topic is going to be a bit harder than expected.

The only thing we both agree on at this stage is removing Margaritaville in Daytona Beach immediately off the list of retirement communities, if you need to know why just ask.
Just wondering what you and your wife did not like about Margaritaville in Daytona Beach?
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Old 07-24-2019, 05:11 AM
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Originally Posted by vin_laurie View Post
The only thing we both agree on at this stage is removing Margaritaville in Daytona Beach immediately off the list of retirement communities, if you need to know why just ask.
Yes...please do tell us!!
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