[villages07]

Originally Posted by hifred123

My husband and I attended the resident academy with the presentation given by Mr. Rohan and there was an additional talk on how to save water when sprinkling your lawn. They did not mention bonds and who the interest is paid to. This might be a good slide to add to the presentation. I would like to be an investor and buy some of these bonds. It is hard to make this type of interest. Does anyone know where I can buy these bonds. I want to get rich quick (LOL).

Not to get too far off topic...I have owned various Villages CDD and Utility bonds for 10 years. They are a good tax-free investment.


When they are initially offered, big institutional investors gobble them up at par value (like the 7% in CDD 9 and 10). Eventually, some come up for resale on the secondary market. The price you pay may be adjusted to reflect current market values. Those 7% bonds might cost you 117 so your effective yield is closer to 4% which is more the going rate. The initial rate is guaranteed for 10 years at which time the issuer (the CDD) can call them in and refinance them at the going rate...which has been done for CDD 5,6,7 and probably 8.



A good reseller is FMS Bonds out of Boca Raton. Edie Nasello, 1-800-367-2663.


To tie back in to the OP, the Developer sets up the initial financing but then the CDD manages the flow in and out from there. The CDD makes the decision to refinance them and lower your bond cost after year 10, if market conditions indicate it is prudent to do so.