Thread: Bond Payment
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Old 05-24-2011, 08:52 AM
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Quote:
Originally Posted by twinklesweep View Post
A smaller or better yet no bond is only one reason to consider buying a resale.
The information regarding the ultimate price of a home in TV based on whether or not there is a bond seems to me to be largely anecdotal and I am uncomfortable about whether it is accurate. The bond,if still in existence,is part of the purchase price. If all of the resales were evaluated using valid appraisal techniques and applying appropriate adjustments for physical, time , and economic conditions, I believe the there would be little dispersion based on the amount of the bond. I also believe that there is less dispersion in price between new and used homes , again when appropriate appraisal techniques are used. I am neither an appraiser nor real estate salesman, but I do believe in using QUALITY practioners not just relying on anecdotes.

Further as some others have suggested repayment of the bond early would make sense for most people unless they could find a very secure investment at rates higher than the bond interest rate. If you know of such an investment please share it with us all.