Quote:
Originally Posted by Altavia
A bit of clarification on the bond.
An important distinction is that the bond is not a personal debt. It does not count against your credit score or mortgage. The interest of not deductable.
Without the bond, the cost of the home and likely what you need to pay/finance for the home higher.
The bond is against the property. When a property sells, the bond remainder becomes responsibility of the new property owner.
Paying off the bond early risks not recovering that money at time of sale.
Good luck in your search.
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There are plenty of existing homes that have the bond already paid off and as I said, if you are looking in the Historic area across 441, there wasn't ever any bond in the first place, so there was nothing to pay off there.
If there is a bond, the current owner is responsible for paying it monthly, OR paying it off in full. You can't make "extra payments" or skip a month or get it deferred. The point is that the investor (in this case the Developer) gets all that juicy interest on each property for 30 years (or less if someone pays it off early).
NOT paying off the bond early means you're just basically giving the developer extra money. Buying a home with a bond already paid off, or one that never had a bond in the first place, means the home is 100% yours, and no one else has any financial interest in it.