Quote:
Originally Posted by coach
Boomer,
There is not one answer for all. I think that if you have been in TV for a couple of years and don't plan to sell your home then paying off the bond is the right thing to do. I have been in TV for five years. The first two were in a patio villa and the last three in a designer. We did not pay off the patio villa because we knew we wanted a bigger house and didn't think we could recoup the bond. Once we settled into our current home for a year we knew it was going to be our home forever, so the the bond payoff made sense for us.
Also as we get older I don't like debt. I sleep better knowing that a house with no mortgage and no bond can be maintained in almost any economic situation.
Coach
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Hi Coach,
I completely understand what you mean on all counts. I am a real "cost of sleep" investor, too. And your plan sounds like it worked out really well for you. The patio villa gave you time to figure out where you were headed it sounds like. And not paying the bond must have made it easier for you to sell, like you knew you were going to end up doing.
If I understand it correctly, the decision to pay off the bond can be made at any time and so it does not have to be an up front decision. I think that's good. It gives a buyer the chance to settle in and really decide if it is the right home before they put out another big chunk of change for the bond. But once that home is the forever plan, that's different, and there are other things to be considered at that point. And like you said, one answer does not fit all.
I am, for now, just looking at this from the angle of a potential buyer, and I know that if we were making an offer on a home with a paid bond that I would not want to pay more for it than for a comparable home with an unpaid bond. Sure it would be nice to buy a pre-owned with the bond paid, but not something that I would be likely to pay a premium for. I know that the fact that this would not be our only home makes a big difference in how I view things.
I also want to say that I very much appreciate the input that I find in these threads about buying in TV. So thank you to all. (This is the kind of thread that first brought me to TOTV. I knew there had to be wonderful, first-hand, practical info somewhere on the internet about TV and so I googled and I googled until I found TOTV.)
Boomer