It is impossible to answer that question without additional information. You should do your own analysis. If you know how long you will be in the house, you can start to put together some numbers. For example, in my case, the bond was $23,483. After 10 years, I will have made payments of $16,160 in interest (non tax deductible), principle, and managements fees and have a bond balance of $19,042. In other words, I will have only paid $4441 towards the principle. The bond fee including management charge is $1616 per year. You can make some assumptions about the future value of the money you would use to pay off the bond. You can also compute the future value of taking the money you would save each year by paying off the bond ($1616) and investing that. If you can itemize your deductions, you can also take out a home equity loan and pay off the bond (at probably a lower interest rate) and the interest will be tax deductible. Nobody can really tell you what makes sense because there are a lot of variables. If you do pay off the bond and then go to sell your house, hopefully the sales agents can explain that the higher price you are asking is compensated for by the lower annual cost since a bond payment won't need to be made. Spreadsheets are useful for running some scenarios.
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Originally Posted by Bleudeturquoise
Is paying off bond a good investment when it comes time to sell your home?
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