How financially stable are some 55 and over communities (Leesburg, Clermont: for sale, real estate)

[dis2cruise]

Hi my mom is just starting to look into some 55 and over communities and I found this message boards which I am sure will help her with her
findings.

With the economy the way it is how can I find out for her if a community will belly up??

At the present time we are looking into ...

The villages

Bellalago

Solivita

If anyone knows any good or bad please let us newbe's know

thanks,
cheryl

[Kappy]

If you are concerned about the builder not completing the home & going under then I would suggest buying a resale in these areas - many for sale at good prices. If you are talking about the community sustaining its amenities then you might have to actually look into the home owners association budget.

[big1ed]

Hello,
Let me put it in this perspective.....Solivita has a street with 17 ( yes 17 ) foreclosures on it....I wonder who will foot the bill for these non paying homes? Also, I get the email from the Villages, and they are selling at a deep discount ( BTW, you pay taxes there to send the EMPLOYEES kids to a high school that was built there, but, hey, not your children or grands get to go there )....And Solivita has a CDD bond, which is more like another tax of 250 - 300 month....Get the picture? Look around Leesburg Fla. instead...

[Kappy]

Originally Posted by big1ed

Hello,
Let me put it in this perspective.....Solivita has a street with 17 ( yes 17 ) foreclosures on it....I wonder who will foot the bill for these non paying homes? Also, I get the email from the Villages, and they are selling at a deep discount ( BTW, you pay taxes there to send the EMPLOYEES kids to a high school that was built there, but, hey, not your children or grands get to go there )....And Solivita has a CDD bond, which is more like another tax of 250 - 300 month....Get the picture? Look around Leesburg Fla. instead...

CDD's cost approx 10,00 per house through a ten year period or you could pay the entire cost at closing. Some developers pay it themselves and add that cost on to the home when selling. $10,000 divided by 10 years come out to a thousand per annum, less then 100 per month. I would like to know what street in Solivita has 17 homes in foreclosure?? That would be a bit scary.

[annerk]

Kings Ridge in Clermont has no CDD (if they did they are long paid off) and a lower percentage of foreclosures than many of the others. It might be a good option. It's within five miles of shopping, movie theater, places of worship, library, doctors, hospital, etc. Many of those you can get to on a golf cart.

[livsea2]

Originally Posted by Kappy

CDD's cost approx 10,00 per house through a ten year period or you could pay the entire cost at closing. Some developers pay it themselves and add that cost on to the home when selling. $10,000 divided by 10 years come out to a thousand per annum, less then 100 per month. I would like to know what street in Solivita has 17 homes in foreclosure?? That would be a bit scary.

First CCDs vary. In the Villages for example on a new home the bond is $20,000 to $40,000 depending on the size of the lot. There is also a CDD maintenance fee that is payable forever. it is about $600 a year.

Next a Community Development District (CDD) once established goes on forever to maintain the community hence the permenant maintenance fee. If necessary they can establish another bond say to resurface the roads. There have been many cases where a second bond was established before the first was paid off (YIKES).

Personally I would RUN from any community that has a CDD. There are so many good ones that have no CDD.

[Johnny Davis]

If you are using foreclosures as a gauge for the strength of a community, The Villages has done very well in avoiding foreclosures. I had a potential buyer who just wanted to buy a foreclosure in The Villages. Needless to say, I wasn't able to help them because there were none at that time.

If you contact a real estate agent, they can pull up the current inventory on the MLS and let you know if the particular area you are looking in has any foreclosures that are currently on the market. They can also give you an idea of how many have been on the market in the last year or so.

Keep in mind though that there are possibly many foreclosures that never hit the MLS, so some agents may not be able to give you the exact number you are looking for, but you should be able to get a good idea.

[annerk]

My guess is that the majority (not all, but the majority) of homeowners in 55+ communities owned homes in other areas prior and as such were able to use that equity to pay cash (often downsizing) for their home.

[Johnny Davis]

Originally Posted by annerk

My guess is that the majority (not all, but the majority) of homeowners in 55+ communities owned homes in other areas prior and as such were able to use that equity to pay cash (often downsizing) for their home.

I would definitely agree with that.