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Old 03-18-2018, 03:04 PM   #21
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Lots of good info in this thread.

Sunset, thanks for the tip about Lake Griffin Harbor where you can buy double-wide houses for $10K - $20K. I thought you mis-typed the price, but a quick check confirmed houses are available for $17K and up. I've been browsing the web and can't figure out what the catch is. Lake Griffin Harbor is 16 miles from the villages, has no golf course or restaurants, but offers lake front property, a nice pool, gym and community center.
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Old 03-18-2018, 03:33 PM   #22
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I learned the hard way to separate my lifestyle decisions from my investment decisions. Two questions that might help you sort out the answer.

1) Lifestyle Option- Would your husband still buy the house without the investment potential?

2) Investment Option- Would this make a good investment without the second home potential?

If you combine the decision, two "no's" could end up being a "yes". In my opinion, the decision should be solely one reason or the other.
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Old 03-18-2018, 04:17 PM   #23
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Yes, good guess... our only amenities are a very nice pool, a so-so clubhouse and a couple shuffleboard courts. There are community tennis courts etc available.
Smart move.
24/7 manned security at the gates, golf courses, Gold's Gym styled work out areas and other amenities only push up the HOA fees. The fewer the "goodies" the lesser the fees in most cases.
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Old 03-18-2018, 04:19 PM   #24
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For our winter condo, if I ignore the fact that I paid cash so have less invested and just look at our annual operating costs.... our annual operating costs are less than 3 months rent during high season... and we use it about 5-6 months.

However, if I factor in opporunity cost (lost investment income less appreciation of the unit) in addition, then our annual costs are probably just a little more than what we could rent a similar unit for 4 months rent duing high season.
I would agree with that, based upon our experience (provided you pay cash for the home).
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Old 03-18-2018, 09:39 PM   #25
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Lots of good info in this thread.

Sunset, thanks for the tip about Lake Griffin Harbor where you can buy double-wide houses for $10K - $20K. I thought you mis-typed the price, but a quick check confirmed houses are available for $17K and up. I've been browsing the web and can't figure out what the catch is. Lake Griffin Harbor is 16 miles from the villages, has no golf course or restaurants, but offers lake front property, a nice pool, gym and community center.
There is no catch.

A long time member here "imoldernu" has had a place there for a long time, and it was his positive view of it that lead me to check it out, and put it on my list of possibles.

We went to it, toured it, looked at about 5 places for sale, and I think it's a nice place, especially for people that fish (dock, boat storage).
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Old 03-19-2018, 08:17 AM   #26
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I went on VRBO and saw a ton of rentals in the Villages .I think a lot of people had the same idea but IMO it is a bad idea . The Villages will only attract a certain type of people who want all those facilities and do not mind being no where near a beach . In the meantime you are paying for all the extras in Homeowner's fees which are probably sky high .
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Old 03-19-2018, 08:29 AM   #27
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I went on VRBO and saw a ton of rentals in the Villages .I think a lot of people had the same idea but IMO it is a bad idea . The Villages will only attract a certain type of people who want all those facilities and do not mind being no where near a beach . In the meantime you are paying for all the extras in Homeowner's fees which are probably sky high .
As someone who has used VRBO to find a winter rental, I can speak to this: Yes there are tons of rentals available, but not easily found for Jan-March.You can find them but it takes a lot of digging, and it ain't necessarily cheap.

I have spoken to people who own places in TV, and while they would love to generate some income in the "off" months, they tell me that it's hardly worth it for the summer months, as wear and tear, and AC costs eat up what little money you can get, trying to rent the property.
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Old 03-19-2018, 12:03 PM   #28
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Key pts, been to the villages a few times over past few years.

Build-out is far from done, the owners of TV will build forever, with aspirations all the way to Orlando! They are popping up a new village right now, there were 3 and will now be 4. This concept seems to keep the pyramid going, as folks from older subs can drive over to newer amenities.

Lots of golfing and nice amenities depending on which sub you are in.

Seems like there is a good mix of 55-90 yr olds which is a huge age difference.

Most rent for the three month high season, and do not break-up months until they have to.

I thought about owning here, and down in naples, but I keep putting my money into mr market. Less emotional for now.
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Old 03-19-2018, 04:04 PM   #29
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My viewpoint - I am not interested in living in the Villages nor being a landlord. I don't think a rental home is a good investment for us. I am concerned we would be stuck with the property, the value would diminish and I would end of retiring in a location I don't want to be. I want him to spend part of his winter's in FL (his dream) either by renting for a month and/or staying with his brother a couple times. Brother and his wife are open to this. I have no problem being home working while he enjoys himself. He earned it and he deserves it.
Well, this (in bold) says it all. In my mind, if you really don't want to be a landlord, regardless the reason, then that should be the bottom line. Happy wife, happy life! Don't ask how I know...

I get that he wants to escape to FL for the winter, and it can be a challenge to find something decent during prime time. Friends spend $4K/month renting a house for 3-4 months near the Gulf. He had to agree to 4 months to lot in a lease; seems like a seller's market during peak season. Maybe it would be easier and cheaper to find just a small condo.

Has your husband wintered in FL much?? I agree with the suggestions to rent and/or live with his brother a few times before even thinking about buying a place. Local knowledge is precious.

We just got back from SE Arizona. Wondered if it would be nice to eventually relocate to escape the northern winters. Well, the places that we would even consider buying cost more there (say Tucson) than they would in our overpriced midwestern metro area. After spending a month down there, we would certainly visit again, but less inclined to stay several months, let along buy a place. Dreams are often most vivid from far away....

Last year, we were dreaming of coastal TX. Got to know some of the friendly locals too during a few weeks weeks of snow birding. Were thinking, maybe "we would do this". After the 2017 hurricane, we're thankful it was only a passing fancy...
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Old 03-19-2018, 09:42 PM   #30
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Well, this (in bold) says it all. In my mind, if you really don't want to be a landlord, regardless the reason, then that should be the bottom line. Happy wife, happy life! Don't ask how I know...



I get that he wants to escape to FL for the winter, and it can be a challenge to find something decent during prime time. Friends spend $4K/month renting a house for 3-4 months near the Gulf. He had to agree to 4 months to lot in a lease; seems like a seller's market during peak season. Maybe it would be easier and cheaper to find just a small condo.



Has your husband wintered in FL much?? I agree with the suggestions to rent and/or live with his brother a few times before even thinking about buying a place. Local knowledge is precious.



We just got back from SE Arizona. Wondered if it would be nice to eventually relocate to escape the northern winters. Well, the places that we would even consider buying cost more there (say Tucson) than they would in our overpriced midwestern metro area. After spending a month down there, we would certainly visit again, but less inclined to stay several months, let along buy a place. Dreams are often most vivid from far away....



Last year, we were dreaming of coastal TX. Got to know some of the friendly locals too during a few weeks weeks of snow birding. Were thinking, maybe "we would do this". After the 2017 hurricane, we're thankful it was only a passing fancy...


We had a similar experience. We spent 3 months in the US Virgin Islands to celebrate our retirement last year. We loved it so much that we considered renting out our CA property and going down again for a year or more to see if we’d like to have a second home there or just move there. Then Hurricanes Irma and Maria hit - double whammy - and we were so grateful we hadn’t been impulsive.
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Old 03-20-2018, 03:45 AM   #31
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Key pts, been to the villages a few times over past few years.

Build-out is far from done, the owners of TV will build forever, with aspirations all the way to Orlando! They are popping up a new village right now, there were 3 and will now be 4. This concept seems to keep the pyramid going, as folks from older subs can drive over to newer amenities.

Lots of golfing and nice amenities depending on which sub you are in.

Seems like there is a good mix of 55-90 yr olds which is a huge age difference.

Most rent for the three month high season, and do not break-up months until they have to.

I thought about owning here, and down in naples, but I keep putting my money into mr market. Less emotional for now.
Are you snowbirding?
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Old 03-20-2018, 04:53 AM   #32
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OP, I can sum up what this investment will most likely lead to in one word; HEADACHE!!!
BEing a long distance landlord can be an expensive adventure.
Does not sound like your husband wants to make the commitment to deal with all the issues that could develop with owning rental property.
A better idea might be to invest the $250k in a tax managed balanced fund: 50% munis and 50% large cap stocks. USe the dividends plus some earnings every year to pay for a trip to Florida and still probably have a decent capital gain down the road.
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Old 03-20-2018, 09:40 AM   #33
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I don’t know enough inputs to know if it’s a good investment, but the mere fact that you are not excited tells me it’s a bad idea...the kind of thing that could cause long term resentments. One potential option is to put $250k into any number of CDs yielding 3%. You’ll get $7,500 annual interest. You could give DH $6,000 of that as his “visit Florida anytime” slush fund, save the rest and know with confidence you won’t lose your $250k or deal with the many headaches and expenditures that come with out of state property ownership.
+1
I was considering buying a place in Ocean Lakes but ran the numbers with some of the local owners i met there and decided it didn't work out. Second week there this January a freeze hit and I saw about 50 places have their pipes burst. Local plumbers made out well; Owners not so much.
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Old 03-21-2018, 10:37 AM   #34
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Sounds awful. I would tell your DH to visit with his brother for a month during the winters. He can buy groceries and take them out to eat a few times a week. Seriously, if you end up working to pay costs when that house needs a new roof, you won't be happy.
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Old 03-22-2018, 11:25 AM   #35
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Thank you all for your thoughtful comments. Lots of angles I did not consider.

Let me say that my husband is a sweetheart and is not being devious in getting an investment/vacation home. He has suggested this could be a short term investment and we could sell it and purchase a vacation home in a different location when I retire.


I think Flintnational said it best:

I learned the hard way to separate my lifestyle decisions from my investment decisions. Two questions that might help you sort out the answer.

1) Lifestyle Option- Would your husband still buy the house without the investment potential?

2) Investment Option- Would this make a good investment without the second home potential?

If you combine the decision, two "no's" could end up being a "yes". In my opinion, the decision should be solely one reason or the other.


FreeBear wrote:

Well, this (in bold) says it all. In my mind, if you really don't want to be a landlord, regardless the reason, then that should be the bottom line. Happy wife, happy life! Don't ask how I know...

Quite right, I do not. My parents had rental property in the very best of circumstances - next door with my Dad being very handy and routinely doing maintenance. But I remember negative aspects also and how this would upset my parents.

Good information about the management companies nickle and diming you. I think many of you are correct that one can count on 3 months for a rental during high season and maybe 1 or 2 additional months but not 12 months of occupancy.

I really don't want to have a rental but I am 100% for my husband to take 1-2 week trips several times over the winter. I am also willing to vacation with him myself during part of that time. Who knows, perhaps after I spend time there, I might like TV. We can also start scouting out other locations which would be a compromise community.

Thanks again! This online community is such a knowledgeable and generous group of individuals with your thoughts and experience.

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