55+ Community resale values

[Pbkmaine]

Awhile back I was looking at a 55+ model home and the realtor said no children or grandchildren overnight That seems harsh and unenforcible to me.

In The Villages, minors under the age of 19 can stay for a maximum of 30 days. Over age 19, it’s indefinite.

 

[aja8888]

Awhile back I was looking at a 55+ model home and the realtor said no children or grandchildren overnight That seems harsh and unenforcible to me.

That's not a problem in ours. Over holidays, youngsters routinely stay for short periods.

 

[joeea]

Awhile back I was looking at a 55+ model home and the realtor said no children or grandchildren overnight That seems harsh and unenforcible to me.

Every community sets their own rules.

In ours, we have our grandchildren overnight for at least one night every week. And during the summer, often for a week at a time.

Learn what the rules are before deciding to purchase a unit in any HOA.

 

[RunningBum]

There is sometimes a lack of understanding of the “over 55” rule. In general, at least 80% of the units in such communities must have at least one occupant age 55 or older. I live in The Villages, and many houses have occupants under 55, most notably disabled adult children or adult children providing care for elderly parents.

What "lack of understanding" of rules? There is no universal law or rule about what constitutes "over 55" communities. Each community sets their own rules. "In general" means nothing, it's what the rules are for the places you are looking at.

When my folks were looking it seemed like every place required you to be over 55 to buy in, but in at least some places there were some workarounds like if you were living with an over 55 resident and they died, you could stay. I know my dad looked to avoid places like that because he was worried that a young adult grandchild would be living there and be there indefinitely after the grandparent died. I don't know if that was one place they looked at, or was typical. I would guess the rule was meant not to kick out a younger spouse if the other died.

 

[audreyh1]

Awhile back I was looking at a 55+ model home and the realtor said no children or grandchildren overnight That seems harsh and unenforcible to me.

In our community 30 days a year is allowed for minor children. No restrictions on adults.

 

[Pbkmaine]

What "lack of understanding" of rules? There is no universal law or rule about what constitutes "over 55" communities. Each community sets their own rules. "In general" means nothing, it's what the rules are for the places you are looking at.

When my folks were looking it seemed like every place required you to be over 55 to buy in, but in at least some places there were some workarounds like if you were living with an over 55 resident and they died, you could stay. I know my dad looked to avoid places like that because he was worried that a young adult grandchild would be living there and be there indefinitely after the grandparent died. I don't know if that was one place they looked at, or was typical. I would guess the rule was meant not to kick out a younger spouse if the other died.

https://www.hud.gov/sites/documents/DOC_7769.PDF

 

[Walt34]

Awhile back I was looking at a 55+ model home and the realtor said no children or grandchildren overnight That seems harsh and unenforceable to me.

I've read of several lawsuits over that issue when grandparents bought into a 55+ community never intending to raise grandchildren but then gained custody when for example a single mom dies unexpectedly, or both parents are killed or get addicted to drugs. What, they're supposed to move out now?

OTOH, they did sign the covenants, and lots of people buy into those communities because they don't want to deal with the neighbor's noisy and ill-bred little brats. (Present company excluded, of course.) I never did find out what the resolution in those cases was.

Rock, meet Hard Place.

 

[RunningBum]

https://www.hud.gov/sites/documents/DOC_7769.PDF

I stand corrected. I believe there are many communities that have much stricter policies.

 

[Pbkmaine]

I stand corrected. I believe there are many communities that have much stricter policies.

Agreed. I think the HUD policy is the minimum requirement.

 

[audreyh1]

I've read of several lawsuits over that issue when grandparents bought into a 55+ community never intending to raise grandchildren but then gained custody when for example a single mom dies unexpectedly, or both parents are killed or get addicted to drugs. What, they're supposed to move out now?

OTOH, they did sign the covenants, and lots of people buy into those communities because they don't want to deal with the neighbor's noisy and ill-bred little brats. (Present company excluded, of course.) I never did find out what the resolution in those cases was.

Rock, meet Hard Place.

Well - moving out is what I assume we would do if we ever had to raise someone else's children.

 

[HFWR]

Well - moving out is what I assume we would do if we ever had to raise someone else's children.

Hopefully before the children arrived... [emoji51]

 

[IMATERP]

Del Webb communities are very restrictive. We bought 1454 sq ft four years ago and it has appreciated by 100k. Unfortunately, the Raleigh Area is growing so fast we will probably relocate in the next few years to get in an area that is slower paced.

Anyway, we will probably do well on our sale due to the fact that folks are coming into this area in droves. In addition, Apple and Amazon are looking at setting up an East Coast HQ in the Raleigh area.

 

[harley]

Thanks for all the input.

I have another question. Since older people tend to be targeted by crooks and con men, are 55+ communities more likely to have higher property crime problems? I wasn't able to find much online, other than the fact that gated communities tend to have slightly lower levels. But the community we're looking at isn't gated. I doubt there's any significant difference, but the fact that you have a cluster of potentially attractive targets might make thieves more interested than just your average neighborhood.

 

[RunningBum]

Thanks for all the input.

I have another question. Since older people tend to be targeted by crooks and con men, are 55+ communities more likely to have higher property crime problems? I wasn't able to find much online, other than the fact that gated communities tend to have slightly lower levels. But the community we're looking at isn't gated. I doubt there's any significant difference, but the fact that you have a cluster of potentially attractive targets might make thieves more interested than just your average neighborhood.

Con men, I get. Crooks and property crime, I don't. Do you have any stats to back that up? I'd think that most house break ins are during the day when people are at work. Quick google search confirms this. Retirees are much more erratic about being away during the day, so I'd think a retirement community would be less of a target. Also, I think people in retirement communities tend to know each other more, and watch out for each other, and would notice a big van parked in a neighbors driveway, or even a slow moving vehicle scoping out houses.

Now, if a burglar isn't so worried about someone being home, they may target a retiree, figuring they might be less likely to fight back, maybe hard of hearing (for a night break-in), and they may target a widow. That may even the odds more, but I doubt a 55+ community gets hit more overall.

 

[Silver]

I live in a gated, 55+ golf course community in central Florida just 20 minutes from Walt Disney World. Our resales values are very good because there are so many people world-wide who have drunk the Disney Kool-Aid, and want to work there part-time in retirement, or volunteer there.

It's also very common for people who live here to purchase another home in the same community wanting to upsize, downsize, or just get a change of view. We just purchased a home with a view of the lake in the same community.

The crime rate is very low. I think a car was broken into several years ago in the clubhouse parking lot. That's about all I can recall from the 11 years we've been here. Our HOA is very good at getting e-mails out to all residents about anything untoward. Our biggest issue recently are all the wild pigs tearing up lawns.

 

[ShokWaveRider]

We do not live in a 55+ community, but we do live in a Gated CC community in NE FLA. Most people here are over 55 by default. We have looked at 55+ communities in our general area but they all seem to be built far away from the beach (Greater than 5 - 10 miles). This is a show stopper for us as we really like living in a beach community (Not ocean front in our case), there is something about it's laid back atmosphere and general "ambiance" if you can call it that. It is hard to explain. Yes it takes a little toll on the house's external appliances, but in general it is not too hard to manage. It is not as bad for sure as being right on the ocean. But being able to walk to the beach for us at least is priceless.

There is a new Dell Webb 55+ in PVB just North of us we went to look at. But they have reduced the quality of the homes being built (Wood Frame vs Block) and the CDD fees are sky high. Yes the Clubhouse is nice, the amenities look great too, but the Taxes on a $400 - 500k home including CDDs can be as high as $10k. We have noticed that some buyers of homes that were built only a couple of years older have been negotiating that the CDD bonds be paid off prior to closing or at closing. We have met 4 couples that have done this with success. I think it is getting more common to do so. Also I noticed that the prices of those "Almost New" homes are significantly cheaper than the New ones, the "Out The Door" price of course not the advertised price which is always shown to be at least 30% lower than actual. We priced out a new home for grins, 700sqft smaller than our current home, with similar fixtures and fittings and it was ~$250k more than the advertised price.

 

[free2020]

We are looking at bigger houses 4+ bedrooms and have looked at the 55+ homes and as nice as they are, we are looking at traditional larger ranch homes. This maybe related to the growth of 55+ communities but the older, traditional, bigger homes are sitting on the market for a long time! I’ve watched the same home listed, delisted, listed again for well over 3 years! We live in the Chicagoland area, and property taxes are clearly a factor. Homes < $400k move quickly but certainly not the $600k ones. There is apparently no appetite for this kind of a home. Wonder if anyone else see this trend in other places?

 

[4legsgood]

RE: demographics playing a role in increase in property values in 55+. Can't builders slam these things out to increase supply. They don't even need to be near employers .

 

[Independent]

It seems to me that if you're buying a used house in a 55+ community, any discount due to the age restriction is already baked into your purchase price. So the fact that you'll sell a little low is offset by the fact that you'll also buy a little low.

Of course, this doesn't apply if you are buying a brand new house.

 

[RunningBum]

It seems to me that if you're buying a used house in a 55+ community, any discount due to the age restriction is already baked into your purchase price. So the fact that you'll sell a little low is offset by the fact that you'll also buy a little low.

Of course, this doesn't apply if you are buying a brand new house.

Except that you may be buying when there are many boomers desiring those communities, and selling as the rest of the boomer wave is selling, with fewer buyers are buying. That's not a good combination.

Perhaps a lot of those communities will convert away from being 55+ then, if they can. Or at least relax their rules to the minimum. Neither of those are that attractive if you're still living there, and really prefer it stay 55+, but at least you'd have a better chance of selling.

 

[brucethebroker]

But the 55+ aspect isn't a major turn off for us either. It's a small community so the rules and such aren't too odious.

That could change with the next board election. You are moving into a neighborhood with people who want to live in a neighborhood with restrictions and enforcement. Not always the people you want in a position of power over your assets.

 

[brucethebroker]

The premise is good: no noisy kids around, and restricting ownership to like minded people at the same stage of life as yourself.

However, think of the worst case scenario: what if you needed to have your grand child move in due to a problem with the parents (physical or drug abuse, abandonment, etc.), what if the economy or your personal situation changed and you needed to rent out your house for a couple of years, or mortgage rates spiked and you needed to sell "rent with option to buy" to get people to even look at your home? Does the HOA allow any of those? By buying into that HOA, you are empowering people to control certain aspects of your life. And many of those board members are only too happy to hide behind the "rule book" when turning down your request for an exception.

We purchased an investment condo (non-55) during the housing downturn. There were no restrictions on buying as an investor and renting it out. But a new board decided that "evil landlords" were destroying their property values, so they put restrictions on who could buy into the neighborhood. ALL new owners and tenants had to submit criminal background checks, proof of sufficient finances and submit to a PERSONAL INTERVIEW with the screening committee. Some committee members went a little overboard with the power: when I sold, my buyer was an adult, buying the condo for his senior aged mother. BOTH were submitted to a very detailed personal interview by neighborhood busybodies, which strayed into non financial areas.

Previously, I had not had a problem with HOA's, but now am very, very cautious. During family emergencies and financial downturns is not the time to have to throw yourself to the mercy of an HOA.

 

[harley]

You are preaching to the choir, Bruce. If I could find a new or newish house, first floor living, decent amenities, near my family, and no HOA I'd buy today. No chance of that though. HOAs are baked in, and as in most forms of government the only people who want to serve probably shouldn't be allowed to. I've had my share of run ins with one large community HOA, and am currently president of the one I live in in FL. However, that's just because the old president died and they need someone to sign the checks. There's only 12 houses in the HOA, and it's still a PITA. I told them up front that if they want someone who will actually do anything, look elsewhere.

The community we're currently looking at (not totally built yet) doesn't even have an HOA yet, but they do have HOA documents. I've read them closely, and compared to the other place where we've had problems they don't have too many rules other than the 55+ aspect. And there are provisions for inheriting kids and renting and such. And only about 60 homes with no room for expansion. I've found the smaller the HOA the less likely they are to be fascists. But since all the other requirements I listed above are being met, we'll considering taking the chance.

 

[ShokWaveRider]

Harley: We are looking for the same, we currently live in in FLA also what part it is in, you can PM me with the info if you do not want to share. Is it by one of the coasts?

 

[Souschef]

You are preaching to the choir, Bruce. If I could find a new or newish house, first floor living, decent amenities, near my family, and no HOA I'd buy today. No chance of that though. HOAs are baked in, and as in most forms of government the only people who want to serve probably shouldn't be allowed to. I've had my share of run ins with one large community HOA, and am currently president of the one I live in in FL. However, that's just because the old president died and they need someone to sign the checks. There's only 12 houses in the HOA, and it's still a PITA. I told them up front that if they want someone who will actually do anything, look elsewhere.
.

We live in a +55 mobile home park. We bought our home new 11 years ago. There are still some older units that get pulled off and new units installed. We have 2 going in right now.
Our home did check all your boxes, as far as new, first floor living, decent amenities and near family.
I can commiserate with you on the HOA. I was treasurer of an 80 unit condo complex for 25 years. Dealing with the drama queens and general A$$e$ was just part of the job. The year before I retired, I did not run for reelection just to decompress.