We moved here from Orlando and saw about a 35-50% reduction in electric bills. We have gas for cooking and water heating which helps, but it's cheaper, as well. The Bond is actually a cost which in most communities would be reflected in just a higher cost for the house. For example: The developer wishes to develop an area of previously undevloped farm acreage. He can't build on it, really, until infrastructure (electric service, sewage, roads, etc) is in place, so what are his options? He can front the money himself, assuming he has what would amount to a considerable up front outlay, and build. He would then add the cost of the infrastructure to the price of the house. Plan B, is that the developer raises the money to put in infrastructure by selling bonds, whose interest (finally) has been declared by the IRS as legally tax free (like most municipal bonds), he then makes the home price look really good, because the price doesn't reflect the Bond payment. Simple Example: A certain house lists at $250,000, but upon closing the buyer is confronted with an additional (again just an example) $15,000 Bond payoff. So the house really, assuming as many do, that the buyer rolls the bond into his mortgage, costs him $265,000. The lower price is attractive, and I'd bet few are dissuaded when the bond issue is revealed, because by that time they've committed. The bond can be paid at closing interest free. If rolled into the mortgage, it will be escrowed and paid annually as an adjunct to the tax bill. Interest is added and the bond is essentially a morgtgage paid to the county which disburses to the developer who pays the bond purchasers. One of the irritations of yhis model is that the buyer cannot declare the interest he pays on the bond as a deductable on Federal income tax. Additionally, the bond cannot be paid off early by adding extra each month to go to principal. It can, of course, be paid off in its entirety at any time. As for taxes in general, Floridians wth a homestead exemption pay relatively little. Compare4d to places elsewhere, taxes are reasonable anyway.
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