Quote:
Originally Posted by Chi-Town
When buying here there was little mention that the bond was paid off. I noticed in the sales sheet that it was listed on the features section, but not knowing anything about buying a house with a bond I never considered it a sales point. It was like OK, that's nice.
I would never pay off a bond early thinking that you would get it or a portion back in the sell price.
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Good advice, Chi-Town,
Of course, there are those who have recouped the bond pay-off cost when they sell, but depending on that might be taking more of a gamble than putting the money directly into a handful of boring, solid, dividend paying stocks.
I do think what can happen when a house with a paid off bond is for sale is that "no bond" can become the scales-tipper if a buyer likes two houses equally much but only one has a paid bond.
But......depending on the market, a seller with a paid bond often feels the house has to list for a higher amount than its competition--which might fly.....or not. Time is money in real estate or in the market and that money can go either way.
What started me into this thread this time is that I truly believe in the whatever-lets-you-sleep-at-night philosophy when it comes to investing money. The bond decision is an individual one to make and this thread is is a sort of informal study of behavioral economics, a field which I find fascinating.
(Also, I got way into this thread while I was riding shotgun for hundreds of miles--Me and My iPad.)
Anyway, this is one of the better bond threads I have seen around here. I love it when I learn something. And yesterday, I learned how to look up all the interest rates for all the bonds in all The Villages. I had thought everybody's was 4.25% like ours.