Exactly. If someone is looking to pay cash, the issue is do they want additional money in the house or would they prefer to pay the interest, principle, and management fee for the bond each year (essentially financing a portion of the house). For someone financing the house, the higher price (and mortgage payments) of a house with a paid off bond will be offset by not having to pay the interest, principle and management fee of the bond. The annual cash flow should, in theory, be very similar.
Quote:
Originally Posted by Barefoot
While paying off the bond may not increase the value of your home, it might.
Some knowledgeable Purchasers will see it as an important feature.
Many Purchasers don't understand the implications of a high bond, but some do.
So if your bond is paid, it MAY make your home more saleable and desirable than houses that have high bonds.
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