Quote:
Originally Posted by Altavia
Be sure you comprehend the bond is not a personal debt.
It is a debt again the property and caries with the property when you sell.
A bond does not count against your credit.
In most cases, people who pay off their bond do not recover their pay off.
The true cost of a bond is the bond interest minus what you can earn on your investments. If you have a 4% bond but earn 4% on a CD carrying the bond costs you nothing.
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That is a taking from Peter to pay Paul concept. If you do not have a bond, you will not have to worry about the additional monthly expense.
OP, Your goal should be to carry the LEAST amount of monthly expenses. Take a close look at property taxes. If you buy a home located in Wildwood, you will have to pay an additional city tax. Unincorporated parts of Sumter do not carry this additional cost. Insurance concerns you? Call and get a quote on each home you wish to purchase. Insurance companies look at the style of home (vinyl vrs block) location, type of roof, as well as age. Some styles of homes may have higher quotes and you can eliminate them. Look at the yard and how much monthly maintenance it will need. Include the bond expense if the home has one. By choosing a home with the least amount of monthly expenses, you should be able to SAVE money each month instead of worrying about how to pay for unnecessary added costs.
Worried about repairs or upgrades? ALL homes, new or old will have this added cost. Again, compare the homes. Add these additional costs to the sales price and omit ALL that go over your $350,000 goal.
IMO, both of these need to be thoroughly reviewed before purchasing a home. Monthly expenses as well as the cost of the home.
I have no idea of your finances. Due to high interest rates that can be earned, some are now choosing to rent a home instead of plopping large amounts of cash into a home. You may want to review this option with your financial advisor.
If an older home with no bond, maintenance free lawn, and low taxes is the one you fall in love with, you may want to consider this. Finance the needed upgrades. Instead of paying monthly expenses for a bond, higher taxes, and extensive lawn maintenance, pay a monthly cost for the loan of your upgrades. Movng forward, Yyour monthly cost will be the same as a new home but you are living in a home you WANT instead of a home you settled for. Just another thing to consider