Quote:
Originally Posted by JimJoe
I agree the principal part of the payment would be small. Do you think it is wise in this economy to pay off the bond? I intend to when I buy. IF I ever sell, I am sure buyers will calculate that into any home they make an offer on, paid or not.
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I think you can be right on both sides if the paying off the bond issue from a financial perspective. IMO, it depends largely on your risk tolerance. I am not advocating either way, but a point to consider (just one in many) is that this may not be a benefit to all buyers, as the assessed value for future taxes has changed.
As an example, lets say my neighbor and I both paid $200,000 and we owe $20,000 on the bond. We both sell at the same time. Both homes go on the market, mine for $200,000 + $20,000 for bond, theirs for $220,000.
My home for the new buyer will be assessed at $200,000 versus the neighbors will be $220,000.
Not the deciding factor, just another line in your matrix when deciding to pay. My issue is that the first question in the matrix is: Do you have $20,000. I cannot get past that one
BTW, lots of threads on this subject in TOTV archives...