[Chi-Town]

Originally Posted by MAITAIMIKE

I do not think it is wise if you are planning to resell.Potential buyers seem to ignore the fact that the bond has been paid.

That is so true. There were no bonds where I came from; the costs were figured in the sell price. So when I noticed a one line blurb in the sales sheet that said no bond I thought that's nice, and that was it. The Villages sales rep never mentioned it.

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[Boomer]

Originally Posted by Chi-Town

That is so true. There were no bonds where I came from; the costs were figured in the sell price. So when I noticed a one line blurb in the sales sheet that said no bond I thought that's nice, and that was it. The Villages sales rep never mentioned it.

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And not only that but when we see the annual cost on the Sumter bill with the property taxes, annual bond payment, etc. it is so much less expensive, in total, than the taxes only, where most of us came from, that it does not get much attention because it can be all so relative.

We pay a little over 1300 bucks on the annual bond bill which reflects a 4.25 interest rate for our district. The amortization is almost, but not quite, to the point where more will go to the principal than to interest. I think the bond pay off would be around the mid-teens of thousands. I think that would be a lot to try to add to a listing price and still remain competitive.

Buyers do need to be well aware though, especially on new builds and also with the variation in interest rate from district to district. A buyer should ask about not only the total amount of the bond but also about the total annual amount due on the tax bill if it includes the unpaid bond amount. There can be a very big difference on what needs to be budgeted annually if a bond is unpaid. A new build in a certain area might have a much bigger annual bond bill than our pre-owned home in the middle section of TV.

(I started a thread here a few weeks ago with directions on how to look up the bond rate and amortization on specific properties. I would link that thread here but I am on my iPad and I keep forgetting to learn how to link on the iPad.)

[kstew43]

also don't forget every neighborhood has a maintence fee as well....I have seen them $350 all the way to $850 a year.....shows on your taxes as well.

[Challenger]

Originally Posted by MAITAIMIKE

I do not think it is wise if you are planning to resell.Potential buyers seem to ignore the fact that the bond has been paid.

How can anyone prudently ignore a lien against their property ranging from $X up to more than $30,000?

If you bought a $50, 000 car that required you to pay another $5000 over the next three years would you take that deal if the dealer next door was selling the same car for $50,000 with no further payment.

I have a bridge to sell !!!

[RickeyD]

Originally Posted by Challenger

How can anyone prudently ignore a lien against their property ranging from $X up to more than $30,000?



If you bought a $50, 000 car that required you to pay another $5000 over the next three years would you take that deal if the dealer next door was selling the same car for $50,000 with no further payment.



I have a bridge to sell !!!

If you like your bond, you can keep your bond. That's a promise !

[Boomer]

I don't want to buy any bridges. And I don't want to buy just any house only because the bond is paid. And neither do most other people. That's just the way it is. Obviously there are numbers to be crunched in any home-buying decision, but a paid bond will not be of primary influence.

The OP asked if a paid bond is a good investment if you are going to sell the house. No. No. No......Well, rarely, if not never.

[rustyp]

Sleep tight - oh what a beautiful feeling

[redwitch]

Bonds are pretty much a way of life in Northern California. The rule of thumb for most of was: planning to stay in that house for more than ten years? Pay off as much of the bond as possible. Planning to sell in the near future (starter house, investment property, job transfer in the future? Just make the monthly payment. Might be forever home but not really sure? Pay at least double the monthly amount due but don't pay it off all it once. You won't recoup this large cash outlay by selling the house.

[Bogie Shooter]

There are so many ways to say the same thing.
These 3 threads have 201 posts.................
If you can't find it here, you can't find it anywhere.

Bond Payoff

Bond and/or Bond Interest Deductiblitiy

When to pay off home bond

[784caroline]

Is paying the Bond off a wise decision...probably not financially but there are may other factors one should consider.

-- If you have $15-25K sitting around earning .01% interest and plan to stay in your house for more than 5-8 years and you are in decent health, no immediate financial obligations, ..pay it off.

-- You most likely will not get the money back when or if you sell BUT it will make you house more appealing to a potential buyer not having to pay a bond.

-- What is the value of peace of mind not have a debt owed to someone?

[autumnspring]

Originally Posted by RickeyD

If and only if both houses are virtually identical in a virtually identical neighborhood located in a virtually identical location. If I liked the house with a bond more, I'd buy it.

We THINK, that you buy a home with your mind. It is in reality, your mind and your heart.

For most homes, OUTSIDE THE VILLAGES, the bond, which pays for the roads etc, is in the price you pay for the home-the lot and the house.

Someone mentioned a bond of 23,000. The heart forgets or does not fully see that if a house is 300,000 and has a 23,000 bond THE REAL PRICE is 323,000. Actually, it is a little more than that as if you do not pay off the bond, while few people here ask or know, the interest on the bond is far higher than mortgage rates.

Interestng-these bonds were resold on the open market as TAX FREE BONDS.
There have been law suits-the bonds have been called-result-I DON'T KNOW.

[ColdNoMore]

The bottom line is, that there is no right/wrong...on whether to pay off a bond.


It simply boils down to a persons preference...and individual situation.


Those who argue adamantly otherwise...probably have other agendas.

[RickeyD]

Originally Posted by 784caroline

Is paying the Bond off a wise decision...probably not financially but there are may other factors one should consider.

-- If you have $15-25K sitting around earning .01% interest and plan to stay in your house for more than 5-8 years and you are in decent health, no immediate financial obligations, ..pay it off.

-- You most likely will not get the money back when or if you sell BUT it will make you house more appealing to a potential buyer not having to pay a bond.

-- What is the value of peace of mind not have a debt owed to someone?

Capital One 360 & other online FDIC banks are paying greater than 2.3% on 5 year CD's. Chase, BOA and others of that ilk pay virtually nothing to keep your money.

[784caroline]

My point was if your receiving less in interest than what you are paying on the bond (probably between 4-5%) it may be wise to pay it off. Who knows where interest rates on CDs next month never mind 5 years out..

[biker1]

If you stay in the house for 15 years, the payments you made will have been enough to pay off the bond but you will still have a substantial balance remaining. If you can estimate how long you will stay in the house, the future value of the money you will have used to pay off the bond, and the future value of investing the annual savings (from paying off the bond), you can at least start to collect numbers to make a rational decision.

Originally Posted by 784caroline

My point was if your receiving less in interest than what you are paying on the bond (probably between 4-5%) it may be wise to pay it off. Who knows where interest rates on CDs next month never mind 5 years out..