Quote:
Originally Posted by jimhoward
I just bought a new house in shady brook. The bond was just over $40k. The interest rate is around 5.5%. I was surprised it wasn’t more.. It’s easy enough do the math and the payment comes out to $3300 or so (plus or minus a couple hundred bucks).
I didn't see any lack of transparency. They tell you the exact bond amount, the term and the interest rate. The payment just falls out.
I doubt I will pay off the bond early because the bond has little effect on the market price if you sell. It perhaps should but it doesn’t seem to. It affects the market size as some people won’t accept bonds and some people mentally add the bond to the price which steers them away from newer homes. But those people are few. A bond free home may sell fast, but it doesn’t seem to sell for more.
Financially keeping or paying the bond is about a wash as the return on money invested elsewhere is similar to the interest rate on the bond.
So I plan to just keep the bond and pay it every year.
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So where is your source of data to prove your assumptions of sales effect?, otherwise they are just another opinion. And if you have data, how did you attribute the customers which didn't look at the houses?