Quote:
Originally Posted by jimbo2012
The bond is no big deal, $100 month should not push you to buy a resale.
Landscaping I want to design my own.
I want to start with clean and new, along with the new building code, also new U can get sinkhole, in a resale U can't get it !
That alone offset the bond issue.
Also U have 5 years on termite protection.
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I STRONGLY disagree that the bond is "no big deal". I had a Villages realtor try to tell me that last year and I felt she was insulting my intelligence. The bond on new homes is in the $20k range for cottages and designers, and the interest on the bond is in the 6% range. The interest on a mortgage can be had in the 4% range right now. The interest on the bond is not tax deductible, so the real rate is 6% while the real rate (with the tax deduction) on the mortgage is 2.5 to 3%. If you pay off the bond it is unlikely that you will be able to recoup it on resale, whereas if you amortize it the interest is problematic. Now, I am not saying the bond is a reason to not buy new, but I am saying it is a drawback and should be taken into consideration. What I do when comparing home prices is add the bond remaining to the asking price to determine the real cost of the home.