While many have been "Brain Washed" by their realtor and told NOT TO pay off their bond there are MANY reasons that make total sense to pay it off.
1. Bond IS NOT tax deductible and you see NO advantage at tax time yearly. There are also ADMIN costs attached yearly to the bond as well.
2. The amount of interest you save if you pay it off right away is "most likely" more than you make on funds invested. If that is the case "your saving $$ by paying it off".
3. If you pay off the bond and are going to stay in the home approximately 12 years before selling you will be at the "Break Even Point" (since you did not pay that accruing interest) you will be able to advertise "Bond Paid" at selling time and that is attractive. Of course if you have NO PLANS on selling the home and it is your permanent home for 30+ years you have saved Tons of cash.
4. Surely 2 houses of equal selling value and comparative in style and one is "Bond Paid" makes your house much more attractive in the selling market and debunks the Myth of "don't pay off your bond"!
We paid our bond off the 2nd year we owned and we are now in the home 5 years and have no plans on selling. It made total sense for us. Our 14k bond (now paid) would have cost us 35k + at maturity (30 years). I hate paying interest!
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