Talk of The Villages Florida - View Single Post - Would the 38K bond on new homes be a deal breaker?
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Old 05-03-2020, 12:13 PM
ALadysMom ALadysMom is offline
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Quote:
Originally Posted by ROOBEE2008 View Post
Any home one buys ANYWHERE has the individual lot infrastructure costs (the bond amount) built into the pricing. It’s just that here in The Villages those costs are split out. Not a deal breaker.
But a home in Elsewhere, USA would have that $38,000 included in the purchase price. So in order to get a mortgage, the Elsewhere house must appraise high enough to finance the total price. Also, the Elsewhere mortgage’s interest rate would be lower than 6.75% and the term of the Elsewhere mortgage would probably be longer than any TV bond financing term, resulting in much higher monthly payments. And the mortgage interest on the Elsewhere (primary) home would be tax deductible. A buyer would also consider the higher new home amenity fees, property taxes, as well as the current lack of accessibility to needs and conveniences. Since golf is declining in popularity, the new areas have fewer courses. The Villages competes for new retiree buyers far beyond its borders. So the Developer sets the price of the bond, then the Bank collects higher interest on the bonds. Wow. I wonder... who owns Citizens First Bank?