[l2ridehd]

I think the answer is simple. If you truly believe your in your forever home then take an equity loan or money from someplace else and pay the bond. Tough to beat 7% guaranteed ROI. If you even have an inkling that you might move again then wait. Resale homes with the bond paid recover 34.7% of the bond value in the sale price. This is based on statistics I have tracked for over 6 years. (ranch and designer homes only) Although I guess if I had all resales it would be very close to the same.

If I look at everything, Time value of money, what I could invest the same amount for elsewhere, what I could recover if I sell, cost of bond interest, speed to sell with a bond paid, it looks like 7 to 9 years is the break even point. Also would vary slightly based on age of home and how much of a bond was left to pay.

The question on the bond expense being deductible if the home is a rental property is yes. ALL expenses including bond, trash, water, amenity fee, paint, repairs, home improvements, furniture, lawn mowing, etc, etc are a cost of doing business and a valid tax deductible expense. Again only if this home is rented or available to rent all the time and you use it 2 weeks or less each year for personal use.

I own 3 homes. One for our use and two rentals. Ours I paid the bond off as I knew it would be 6 years before we would be able to make the decision to stay or move. So I only needed one more year to break even. And if we stay there more then 7 I make money. One rental I bought with the bond already paid. The other is not paid and I will never pay it as long as it is a rental.

Each decision is unique and all variables should be considered. Be happy to help anyone step through the decision process if they are on the fence.