Quote:
Originally Posted by CoupleNCA
We visited the Brownwood TS to introduce ourselves and interest. But the realtor we were assigned on our first in-person visit has refused to answer one of our most basic of questions multiple times (she seems to keep copy/pasting the same answer to my very direct question).
My simple question is this: We've seen several really nice properties that promote the fact that they're "NO BOND". As if it was some huge savings or advantage. I just want to know: "What is the average real-world saving on a property with a bond vs. no-bond?"
The sales brochures shows the monthly fees as "bond+maintenance+fire" so you can't gauge what percentage each makes up.
I totally understand the concept of the bond and I totally understand why each "Villages" bond may differ in terms of price. But we're merely trying to ascertain if a property being highly-promoted as "NO BOND" is really that significant and should be given priority in our choices.
Can anybody please answer this question honestly? My assigned realtor can't or won't.
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Mostly everthing said so far about the Bond is true BUT at the end of the day, a house with No Bond is just another selling point like having a pool or a view. A home with a paid off bond will definetly be a couple thousand dollars cheaper to run every year.
Also, those who say I get more interest in the bank so i'm not paying off the bond, on a new or relatively new home you are paying mostly interest just like a regular mortgage so since interest rates won't be this high forever, in a couple of years when they go back down, all you would have done is paid more of the bond interest and very little of the principal.
Bottom line, if you have the money or plan on staying in your home for 5+ years or forever, then pay off the bond. If you plan to move every couple of years then don't.
Also remember even a large $40,000 bond in an expensive home can get easily hidden in a $900 - $1 million dollar home so you can always arrange to re-coup the cost. Most of the older homes 5+ years old have bonds in the $20,000 range. So why pay interest and administrative fees every year?