What is your bond payment?

[Rainger99]

Some threads say that the Villages is not that transparent about bond payments on new sales and that people are shocked when they get their first tax bill.

I have been told that bonds in the new areas are very expensive.

I bought new in 2021 and pay about $1,000 a year.

[retiredguy123]

I bought in 2016 and my bond payment is $1,043 per year.

[Bogie Shooter]

With very little effort you can see what the bond amount is for any lot in TV.
Welcome to The Villages Community Development Districts (http://Www.districtgov.org)

[LeRoySmith]

3200 :doh:

[Bill14564]

Some threads say that the Villages is not that transparent about bond payments on new sales and that people are shocked when they get their first tax bill.

I have been told that bonds in the new areas are very expensive.

I bought in 2021 and pay about $1,000 a year.

Did you buy a new home? The bond amount is set when the home is built, not when it is last purchased. If you bought a pre-owned home then your purchase date of 2021 is irrelevant.

If you have a $1,000 bond on a home built in 2021 then that's a great deal.

[Bay Kid]

I paid mine off several years ago. I looked at it like bad credit card debt.

[Bogie Shooter]

Many variables to the bond payment amount .
I do not see how any amount posted here without clarification could be helpful to a new or resale buyer.
Purpose of this thread again is?

[MSchad]

Some threads say that the Villages is not that transparent about bond payments on new sales and that people are shocked when they get their first tax bill.
I knew exactly what my bond payment was going to be before I purchased. I just asked my rep how much it would be. Very forthcoming and transparent.

[Rainger99]

With very little effort you can see what the bond amount is for any lot in TV.
Welcome to The Villages Community Development Districts (http://Www.districtgov.org)

You have 19,000 posts so you are very familiar with the Villages. The purpose of the post is to provide information to those people who aren't that familiar with the Villages. There are a number of posts where people are surprised by the bond. This post is for them.

I checked the bonds in Lake (I think it was the Enclave) and the bond is about $5200 a year. That is a bond of 72,000 and 5.47%. I also checked some homes in Eastport. The highest that I have seen is about $3600 - most are around $3,000.

[Rainger99]

Many variables to the bond payment amount .
I do not see how any amount posted here without clarification could be helpful to a new or resale buyer.
Purpose of this thread again is?

It is to provide information to people who are considering buying in the Villages. As a general rule, the more information that you have, the more likely you are to make an intelligent decision.

[Rainger99]

I knew exactly what my bond payment was going to be before I purchased. I just asked my rep how much it would be. Very forthcoming and transparent.

Did you rep volunteer the information? Or did you have to ask?

[LeRoySmith]

You have 19,000 posts so you are very familiar with the Villages. The purpose of the post is to provide information to those people who aren't that familiar with the Villages. There are a number of posts where people are surprised by the bond. This post is for them.

I checked the bonds in Lake (I think it was the Enclave) and the bond is about $5200 a year. That is a bond of 72,000 and 5.47%. I also checked some homes in Eastport. The highest that I have seen is about $3600 - most are around $3,000.

We were all set to buy and build in the enclave until our rep started telling up about the bond and property tax.

[Topspinmo]

Zero, I paid it off. They don’t want you to pay it off. Like any loan all about interest, that s were money made.

[Topspinmo]

//// repeat

[Maker]

There is also a yearly service fee above and beyond the bond cost. Factor that cost onto the bond. It is a significant additional amount percentage.

[Bogie Shooter]

You have 19,000 posts so you are very familiar with the Villages. The purpose of the post is to provide information to those people who aren't that familiar with the Villages. There are a number of posts where people are surprised by the bond. This post is for them.

I checked the bonds in Lake (I think it was the Enclave) and the bond is about $5200 a year. That is a bond of 72,000 and 5.47%. I also checked some homes in Eastport. The highest that I have seen is about $3600 - most are around $3,000.
Easy enough to check……….

[bilcon]

There is also a yearly service fee above and beyond the bond cost. Factor that cost onto the bond. It is a significant additional amount percentage.

I don't see any service fee on the tax bill. It just says the yearly amount for the bond for my unit.
The maintenance fee shown has nothing to do with the bond.

[Decadeofdave]

Only looked at homes for sale with no bond. It was one of the parameters given to the realtor.

[JoMar]

At my age, made no sense to pay it off. Lot of vaiables in that decision.

[BrianL99]

I don't see any service fee on the tax bill. It just says the yearly amount for the bond for my unit.
The maintenance fee shown has nothing to do with the bond.

You are correct, there is no "fee".

Unlike the usual municipal government many of us are used to, CDD's are different.

When you buy in The Villages, you pay your usual local & county taxes + you pay a "bond" that paid for your infrastructure + you pay a "maintenance fee", which is essentially the same as the portion of your taxes you'd pay to your city/town for infrastructure maintenance.

[4$ALE]

I don't see any service fee on the tax bill. It just says the yearly amount for the bond for my unit.
The maintenance fee shown has nothing to do with the bond.

You are correct, there is no "fee".

Unlike the usual municipal government many of us are used to, CDD's are different.

When you buy in The Villages, you pay your usual local & county taxes + you pay a "bond" that paid for your infrastructure + you pay a "maintenance fee", which is essentially the same as the portion of your taxes you'd pay to your city/town for infrastructure maintenance.

:ohdear: I'm afraid you are both wrong. The Bond Amount on your tax bill is made up of 1. PRINCIPAL 2. INTEREST 3. ADMIN. FEE

Have either one of you ever looked at your amortization schedule online? It's all there.... right where Bogie said it was. :rolleyes:

[Rainger99]

:ohdear: I'm afraid you are both wrong. The Bond Amount on your tax bill is made up of 1. PRINCIPAL 2. INTEREST 3. ADMIN. FEE

Have either one of you ever looked at your amortization schedule online? It's all there.... right where Bogie said it was. :rolleyes:

He is correct. I am attaching an amortization schedule which lists principal, interest, and an administrative fee. Over the course of 30 years, the administrative fee is $6552.

Not a huge amount but it adds up.


https://www.districtgov.org/departments/Finance/amortization/Sumter/District%2015/S15%20-%20Unit%20144V.pdf

[CoachKandSportsguy]

CDD 12 $1,917 bought in 2019

on a resale, the key is to look at the expiration date of the payments and the amount left.

Good question to ask before any TV purchase

[Altavia]

I get people don't like debt but - Bonds are not personal debt. They do not impact your credit rating. The interest is not deductable.

If you need to borrow to purchase the property, they effectively reduce the amount you need to borrow compared to including the bond cost in the price of the home.

The true cost of a bond is the difference between what you can earn on the money vs the bond interest. E.g. If the bond is 5% and you can earn 4.5% with a CD, the differences is just 0.5%

They carry with the property. Paying them off risks not getting the funds back when the property is sold.

Life is full of twists and turns so be careful assuming you will never need to sell your home.

[BrianL99]

:ohdear: I'm afraid you are both wrong. The Bond Amount on your tax bill is made up of 1. PRINCIPAL 2. INTEREST 3. ADMIN. FEE

Have either one of you ever looked at your amortization schedule online? It's all there.... right where Bogie said it was. :rolleyes:

I don't have a bond, so I don't have a bill to view. I did look it up and you're right, there is an Admin Fee for Bond Management, I wasn't aware of. I thought the poster was referring to the "maintenance fee", but I stand corrected. Thank you.

[CoachKandSportsguy]

They carry with the property. Paying them off risks not getting the funds back when the property is sold.



Sure you can get your funds back. . if the sale price of the house less commissions is greater than the cost of the house plus the bond, you get the bond back. . at average rates of house appreciation, its about 5-6 years. . you just don't get as much back in total, which is the confusion. . but if you have no reason to move, and i get that moving can be unpredictable, if you have the money, paying it off just reduces your annual cost of ownership, and freezes up more disposable income from other fixed income sources

[tophcfa]

We bought our house in 2015 with a bond balance of zero, so we have never paid a penny towards a bond or an administration fee. I found it interesting when we purchased that the prices of homes didn’t seem to reflect the outstanding bond balance in any meaningful way. Based on that, I wouldn’t recommend paying off the balance early and if purchasing a pre owned home I would seek out homes with little to no outstanding balance, all other things being equal.

[asianthree]

Didn’t need any transparency, have know bond amounts on every house we looked at since 2007. It was listed on the TV fact sheet then

2010 $879.00

2012 $919.00

2014 $1425.00

2022 $2088.00

We make more money on our investments than the % of bond.

[jimhoward]

I just bought a new house in shady brook. The bond was just over $40k. The interest rate is around 5.5%. I was surprised it wasn’t more.. It’s easy enough do the math and the payment comes out to $3300 or so (plus or minus a couple hundred bucks).

I didn't see any lack of transparency. They tell you the exact bond amount, the term and the interest rate. The payment just falls out.

I doubt I will pay off the bond early because the bond has little effect on the market price if you sell. It perhaps should but it doesn’t seem to. It affects the market size as some people won’t accept bonds and some people mentally add the bond to the price which steers them away from newer homes. But those people are few. A bond free home may sell fast, but it doesn’t seem to sell for more.

Financially keeping or paying the bond is about a wash as the return on money invested elsewhere is similar to the interest rate on the bond.

So I plan to just keep the bond and pay it every year.

[asianthree]

Some threads say that the Villages is not that transparent about bond payments on new sales and that people are shocked when they get their first tax bill.

I have been told that bonds in the new areas are very expensive.

I bought new in 2021 and pay about $1,000 a year.

New house in 2021 and only $1000 a year bond is impressive on a new house south of 466a. In 2010 we were just under $1,000 that was in Pennacamp near LSL.

[OrangeBlossomBaby]

My home didn't have a bond. Neither did anyone else on my side of The Villages. We're in the city of Lady Lake, in Lake County, and there were no bonds imposed on the manufactured homes rolled in when the "Historic Secton" was developed. All homes built in our area up to the present time, replacing those manufactured homes with "site-built" and block and stucco, also had no bond.

I think we voted to start imposing bonds going forward though, it was one of the things on our ballots in November.

[Rainger99]

New house in 2021 and only $1000 a year bond is impressive on a new house south of 466a. In 2010 we were just under $1,000 that was in Pennacamp near LSL.

House is relatively small. Not a designer.

[CoachKandSportsguy]

I just bought a new house in shady brook. The bond was just over $40k. The interest rate is around 5.5%. I was surprised it wasn’t more.. It’s easy enough do the math and the payment comes out to $3300 or so (plus or minus a couple hundred bucks).

I didn't see any lack of transparency. They tell you the exact bond amount, the term and the interest rate. The payment just falls out.

I doubt I will pay off the bond early because the bond has little effect on the market price if you sell. It perhaps should but it doesn’t seem to. It affects the market size as some people won’t accept bonds and some people mentally add the bond to the price which steers them away from newer homes. But those people are few. A bond free home may sell fast, but it doesn’t seem to sell for more.

Financially keeping or paying the bond is about a wash as the return on money invested elsewhere is similar to the interest rate on the bond.

So I plan to just keep the bond and pay it every year.

So where is your source of data to prove your assumptions of sales effect?, otherwise they are just another opinion. And if you have data, how did you attribute the customers which didn't look at the houses?

[4$ALE]

My home didn't have a bond. Neither did anyone else on my side of The Villages. We're in the city of Lady Lake, in Lake County, and there were no bonds imposed on the manufactured homes rolled in when the "Historic Secton" was developed. All homes built in our area up to the present time, replacing those manufactured homes with "site-built" and block and stucco, also had no bond.

I think we voted to start imposing bonds going forward though, it was one of the things on our ballots in November.

:confused: Could you please double check that and maybe provide a link for us to read?

[Goldwingnut]

So where is your source of data to prove your assumptions of sales effect?, otherwise they are just another opinion. And if you have data, how did you attribute the customers which didn't look at the houses?
I think we'll find that no matter which side of the argument you are on over the impact of the bond on home sales here in The Villages it is all conjecture and opinion.

The bond amounts continue to rise and will likely always continue to rise. CDD15 phase 2 bonds are higher than the phase 1 bonds and CDD16's bonds next year will be even higher. All three are higher than cdd14, and those before CDD15. Inflation.

The only accurate way to assess if the bonds are truly increasing is to not look at the cost for the individual home but the cost per developed acre (the underlying factor), adjust it for inflation since issuance, and then compare it to the inflation and marked adjusted home cost in that area. I did this 5 years ago when I did my video on the bonds ( https://youtu.be/nGwf7AcmyEI?si=7zOHETbxY8DDnUSl ). What I found was that the adjusted cost per acre and the bond/home price ratio of the bond value actually decreased over a 15 year period.

[huge-pigeons]

Everybody knows what the bond prices are in the different areas of TV. If you are only paying $1000 for a new house built in 2021, you are getting 1 heck of a deal. Ours is 3x that much for a 2021 designer house.
Every house we were interested in when we were initially looking, we knew exactly what the bond would be, it’s no secret.
The bond is just an extra expense which I wouldn’t let that get in the way of buying a house that you like. I have many friends that moved to newer areas with much higher bond fees because the price of the land was much cheaper, and I mean much cheaper. Pay $10k more for a bond bu saved over $100k for the land, pretty good deal.

[bowlingal]

bond payment of $1000/per year, for how many years? 30? then your bond is $30,000 at what 7%? Not so good

[asianthree]

bond payment of $1000/per year, for how many years? 30? then your bond is $30,000 at what 7%? Not so good

So OP $1,000 a year bond with interest and admin fees in 2021 would be far less than $30,000, which OP has not stated original bond at build.

[jimhoward]

So where is your source of data to prove your assumptions of sales effect?, otherwise they are just another opinion. And if you have data, how did you attribute the customers which didn't look at the houses?

Yes, just an opinion. Can’t be in any way proven for the reasons you say.

[mkjelenbaas]

Some threads say that the Villages is not that transparent about bond payments on new sales and that people are shocked when they get their first tax bill.

I have been told that bonds in the new areas are very expensive.

I bought new in 2021 and pay about $1,000 a year.
As to your question wanting to know my bond payment - that is proprietary information and don’t disclose the amount - but thanks for asking.

[Michael 61]

I’m in a 2022 new build - patio villa - $1093 a year / the designer home right next door to me pays more than double that. Original bond was about $21,000. In a few more years, if I decide not to move to the Eastport area, I’ll probably pay off the bond.

[Rainger99]

So OP $1,000 a year bond with interest and admin fees in 2021 would be far less than $30,000, which OP has not stated original bond at build.

The bond was about $18,000 or $19,000.

[Bogie Shooter]

As to your question wanting to know my bond payment - that is proprietary information and don’t disclose the amount - but thanks for asking.

Publicly available by unit and lot number.

[mtdjed]

The bond is part of the cost of your home. You can pay it off when you buy or pay it per the schedule.

It really is an asset just like the home. Someone has to pay for the infrastructure, water supply, streets, gas supply etc..

Some developments may have more amenities and therefore have a higher bond. If too high, buy elsewhere. To avoid bonds, buy in an established community where all such bonds are retired.

It is your choice.

Similar decisions have been around for years. In 1950, my parents bought a suburban home on a dirt, gravel road with no supplied water, gas or sewers. Everyone had wells, septic systems, propane tanks etc. As time passed, the community evolved and the road was paved, water and gas lines were added. But that did not happen for free. Owners were assessed a fee based upon frontage just to make access possible. Additional costs were incurred to connect.

However, that increased the value of the homes.

[Lisanp@aol.com]

I think The Villages is very transparent about the bond fees on new construction. It is printed on the plat plans for each subdivision of each village.
I think there are two issues when people are shocked and complain about their tax bills. The first is that for year-one that you own new construction, it is taxed as vacant land. When it becomes fully assessed for the value of the home, it is a huge jump and a shock. When you close, you know the taxes that day, but you don't really know what the taxes will be a year from that day.
The second issue is that people just don't read their contracts. When you add in the maintenance assessment, fire assessment, bond payment, etc it's more then many were expecting to pay on their tax bill, but it is all outlined in black and white on the contract if you read it including the full amortization table for the bond payment showing total interest to be paid.

[coleprice]

The link that you provided requires the user to do a search to find very little information regarding Bond Payments. It certainly doesn't quantify the Amounts of Payments and the Amount of the Bonds. Another response below quantified Bonds as high as $72,000, which is the amount a Buyer of a home owes, in ADDITION to the home's purchase price. The Villages is Transparent about the amount of the Bond that a Buyer is assuming when selling new homes. So Buyers need to consider the amount of Bond that they are responsible for whenever purchasing a home in The Villages since they are responsible for paying that debt, which they are assuming.

[Indydealmaker]

Some threads say that the Villages is not that transparent about bond payments on new sales and that people are shocked when they get their first tax bill.

I have been told that bonds in the new areas are very expensive.

I bought new in 2021 and pay about $1,000 a year.

You need to remember that forum posts without reference to documentation are just OPINIONS.

[onfire]

The link that you provided requires the user to do a search to find very little information regarding Bond Payments. It certainly doesn't quantify the Amounts of Payments and the Amount of the Bonds.

I didn't post the link, but perhaps this will help:

Finance - The Villages Community Development Districts (https://www.districtgov.org/services/administration/finance/)

You can navigate to the CDD and property location, then it will show a full schedule in detail.

[Birdrm]

Bought new in 2022 and my bond is $1,129 per year.

[Nana2Teddy]

I think we'll find that no matter which side of the argument you are on over the impact of the bond on home sales here in The Villages it is all conjecture and opinion.

The bond amounts continue to rise and will likely always continue to rise. CDD15 phase 2 bonds are higher than the phase 1 bonds and CDD16's bonds next year will be even higher. All three are higher than cdd14, and those before CDD15. Inflation.

The only accurate way to assess if the bonds are truly increasing is to not look at the cost for the individual home but the cost per developed acre (the underlying factor), adjust it for inflation since issuance, and then compare it to the inflation and marked adjusted home cost in that area. I did this 5 years ago when I did my video on the bonds ( https://youtu.be/nGwf7AcmyEI?si=7zOHETbxY8DDnUSl ). What I found was that the adjusted cost per acre and the bond/home price ratio of the bond value actually decreased over a 15 year period.
Sure do miss your drone videos. Hope they’ll come back eventually.

[OrangeBlossomBaby]

:confused: Could you please double check that and maybe provide a link for us to read?

Found the reference, turns out it's a different type of bond, not a development bond. It's actually an anti-development bond that gives the city the right to purchase unused parcels and preserve them, thus preventing over-development. It was approved by the voters and will cost homeowners an average of $21 per year.

[DAVES]

Some threads say that the Villages is not that transparent about bond payments on new sales and that people are shocked when they get their first tax bill.

I have been told that bonds in the new areas are very expensive.

I bought new in 2021 and pay about $1,000 a year.

An endless confusion. The bond, you are paying for home support stuff like roads. One way of the other you pay for this as taxes, and or in the price of the home. Sounds like you have a mortgage on your home. The bank can tell you the interest you pay on the bond it is our ours was higher than the interest on the mortgage. You will be told, if you pay it off you will not recover the cost. Not sure that is true. Buying a resale. The SALES PERSON will tell a new buyer that the AC is new or whatever. They try not to open up the bond can of worms. My view. If, you pay 500 for a home and the bond is 30, you paid 530 for the home and the 30 you pay a higher interest on it..
Finances, it always depends. Contrary to my PLAN, we do not itemize so interest is not deductible. Typically as in a mortgage you pay the interest first and then the principal; MATH CONFUSION. If, you pay the interest first and you then decide to pay it off the real interrst you've paid is higher than what you are told-if you ask.

[DAVES]

Bought new in 2022 and my bond is $1,129 per year.

People tend to think so much per year kind of thing. It is based on what the house was priced at new. A more expensive home will have a higher bond.

[Pairadocs]

It is to provide information to people who are considering buying in the Villages. As a general rule, the more information that you have, the more likely you are to make an intelligent decision.

Excellent, clear, succinct answer, bravo !

[DAVES]

So where is your source of data to prove your assumptions of sales effect?, otherwise they are just another opinion. And if you have data, how did you attribute the customers which didn't look at the houses?

All posts here are OPINION. Wise to confirm anything you read. A cop gives you a ticket-but whatever pseudo name on talk of the villages said it was legal will not help.

[TheWarriors]

People tend to think so much per year kind of thing. It is based on what the house was priced at new. A more expensive home will have a higher bond.

Exactly, too many people comparing apples and steaks. A 1/1 is in no way comparable to a 3/2 or 4/3. The bond is less because the home is less. Seems to me those purchasing more expensive homes with higher bonds know the details and can afford it. Good for them and our community. It’s like a person driving a Honda CRV complaining about the cost of an oil change on a Ferrari they don’t own.

[Bill14564]

People tend to think so much per year kind of thing. It is based on what the house was priced at new. A more expensive home will have a higher bond.

Bond is not based on price of home. A more expensive home may have a higher bond but not necessarily. Easy example: all homes in an area pay the same bond amount though it’s very likely that some of those homes cost more than others.

[DAVES]

As to your question wanting to know my bond payment - that is proprietary information and don’t disclose the amount - but thanks for asking.

Sort of true but not. If, you want to, you can pick a house address and find who owns it what it is worth, if there is a mortgage and perhaps the name of their dog. PRIVACY is an illusion.

[Bogie Shooter]

All posts here are OPINION. Wise to confirm anything you read. A cop gives you a ticket-but whatever pseudo name on talk of the villages said it was legal will not help.

People tend to think so much per year kind of thing. It is based on what the house was priced at new. A more expensive home will have a higher bond.

Bond is not based on price of home. A more expensive home may have a higher bond but not necessarily. Easy example: all homes in an area pay the same bond amount though it’s very likely that some of those homes cost more than others.

Confirmed as wrong.

[mtdjed]

bond payment of $1000/per year, for how many years? 30? then your bond is $30,000 at what 7%? Not so good

Not quite the way math works. In my opinion, a 30 year loan at 7% interest and a $1000 yearly payment would have an original bond somewhere near $12000 to $13000. MY math may be faulty but remember that the Interest is included in that $1000 yearly payment.

[Bill14564]

Not quite the way math works. In my opinion, a 30 year loan at 7% interest and a $1000 yearly payment would have an original bond somewhere near $12000 to $13000. MY math may be faulty but remember that the Interest is included in that $1000 yearly payment.

Remember that there is also an admin fee in that $1,000 annual payment. My fee was $88 but I doubt that amount is consistent across all bonds.

A $1,000 payment that included an $88 admin fee would result from an initial bond amount of $11,300.

[mrf6969]

Bond on our first new home here was 8K. Second new home 15K. Are the new home bonds really 50-60K now?

[Goldwingnut]

People tend to think so much per year kind of thing. It is based on what the house was priced at new. A more expensive home will have a higher bond.

NO! NO! NO!
The price of the house has nothing to do with the bond amount. It is based on the cost per acre for the area of development times the number of acres in a subdivision divided by the number of homes in the subdivision. The cost of the home has no impact on the amount of the bond.

[melpetezrinski]

Remember that there is also an admin fee in that $1,000 annual payment. My fee was $88 but I doubt that amount is consistent across all bonds.

A $1,000 payment that included an $88 admin fee would result from an initial bond amount of $11,300.


District 13 (Richmond) CDD Debt assessment for 2025 is $1972.97. This is for a total CDD debt (30 year bond) of $33,555.86. I don't know the admin fee so if we use say $100, this equates to a 3.9% interest rate.

[Rainger99]

NO! NO! NO!
The price of the house has nothing to do with the bond amount. It is based on the cost per acre for the area of development times the number of acres in a subdivision divided by the number of homes in the subdivision. The cost of the home has no impact on the amount of the bond.

Thanks for the facts!!

[CoachKandSportsguy]

NO! NO! NO!
The price of the house has nothing to do with the bond amount. It is based on the cost per acre for the area of development times the number of acres in a subdivision divided by the number of homes in the subdivision.

Thanks again Don, which is why, it's public information, posted for each CDD, and it's relatively equal per lot/house. So whomever claimed personal information, isn't correct but understand her response. Tax bills per lot/house, excluding bond payment, always different per house/lot.

I didn't look at our bill, as its already filed away after being paid with online banking, but I looked it up on the CDD house / lot schedule. .

So the only information gained from this whole discussion is where do you live, and if you have a bond payment or not., and if you choose to volunteer the information or not . . the bond payment is by CDD, and it's black and white, either you have a bond payment or you paid it off/purchased it paid off. .

TOTV hashed out to the final answer!

[Normal]

If you bought between 2020-2022 it may be cash foolish to pay off your bond. 30,000 will make more in a CD at the bank than the loss in interest for a bond. Of course now interest rates are much higher.

Fun fact though, your bond payment for many Villages south of 44 is paying for roads and your sewage treatment plant etc. You are also paying for another sewage treatment plant for the city of Wildwood to the tune of 120 million and that price is escalating.

Hmm, in hock for the sewage treatment plant for your village fo a decade plus, and then paying for someone else’s simultaneously. The bond for one and more taxes for the other. What a great idea. /s

[TheWarriors]

NO! NO! NO!
The price of the house has nothing to do with the bond amount. It is based on the cost per acre for the area of development times the number of acres in a subdivision divided by the number of homes in the subdivision. The cost of the home has no impact on the amount of the bond.

But by dividing up the areas into sections, the less expensive homes have less expensive bonds. Courtyard Villas being a prime example of more homes squeezed into smaller areas to average their bond costs. Otherwise why not just charge per rooftop over a much larger area like an entire Village. So I do think the cost of a home plays a significant part in the bond you will pay as well as the space you will have to enjoy.

[pauld315]

Nothing. We bought a house with the bond already paid off.

[Maker]

I do not think bond interest is deductible if you itemize. Neither is the admin fee. But your investment interest is taxable. You would need a significant higher investment gain than the bond cost to make that beneficial.

[ThirdOfFive]

You have 19,000 posts so you are very familiar with the Villages. The purpose of the post is to provide information to those people who aren't that familiar with the Villages. There are a number of posts where people are surprised by the bond. This post is for them.

I checked the bonds in Lake (I think it was the Enclave) and the bond is about $5200 a year. That is a bond of 72,000 and 5.47%. I also checked some homes in Eastport. The highest that I have seen is about $3600 - most are around $3,000.


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[Normal]

!!!

There are almost 600 preowned homes for sale. Why pay so much for a bond? Just buy preowned homes with newer amenities with lesser bonds like Hawkins, Citrus Grove or St. Catherine. The newer homes aren’t nearly as nice as those that have been built within the past 5 years or so.

[Rainger99]

But by dividing up the areas into sections, the less expensive homes have less expensive bonds. Courtyard Villas being a prime example of more homes squeezed into smaller areas to average their bond costs. Otherwise why not just charge per rooftop over a much larger area like an entire Village. So I do think the cost of a home plays a significant part in the bond you will pay as well as the space you will have to enjoy.

There is no direct correlation between the home cost and the bond.

I am not exactly sure how they decide what homes are in a specific section but I believe they are grouped by type. I have never seen patio villas grouped with premier homes or with designer homes.

All groups within the same section have the same bond price.

I looked at some veranda homes in Eastport and one section had veranda homes with a view and it also had homes with a wall. The price difference for the homes was more than $100,000 but they all paid the same bond price.

I live in a patio villa and other people in my bond grouping live in courtyard villas that were about $100,000 more when we bought. But we pay the same bond price so the less expensive houses subsidize the more expensive houses.

[Bogie Shooter]

All share equally in cost of the infrastructure.

[Nana2Teddy]

If you bought between 2020-2022 it may be cash foolish to pay off your bond. 30,000 will make more in a CD at the bank than the loss in interest for a bond. Of course now interest rates are much higher.

Fun fact though, your bond payment for many Villages south of 44 is paying for roads and your sewage treatment plant etc. You are also paying for another sewage treatment plant for the city of Wildwood to the tune of 120 million and that price is escalating.

Hmm, in hock for the sewage treatment plant for your village fo a decade plus, and then paying for someone else’s simultaneously. The bond for one and more taxes for the other. What a great idea. /s
We bought new in 2022 and our bond interest is around 3%. We’re definitely not going to pay it off. Interest began to rise significantly right after we bought, so we lucked out.

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We bought new in 2022 and our bond interest is around 3%. We’re definitely not going to pay it off. Interest began to rise significantly right after we bought, so we lucked out.

Late 21-2022 was definitely the best window to borrow any funds for a home purchase or bond. Anyone who wanted to pay off borrowed funds from that time period would be crazy. If you are paying 2-3 percent for a 500 thousand dollar home loan, that same amount in money markets and stocks can earn you about 7% conservatively.

No one I know of would throw that free money away.

[Bill14564]

Late 21-2022 was definitely the best window to borrow any funds for a home purchase or bond. Anyone who wanted to pay off borrowed funds from that time period would be crazy. If you are paying 2-3 percent for a 500 thousand dollar home loan, that same amount in money markets and stocks can earn you about 7% conservatively.

No one I know of would throw that free money away.

In addition to the interest on the bond there is the yearly admin fee. This may be negligible at the beginning of the payments but drives the effective interest rate up towards the end of the loan.

I could find no money market account with an interest rate above 5%.

The stock market is up this week but may be down next week. Over time it has increased but there is always the risk of a downturn. On the other hand, the interest and admin fee on the bond will always be there.

I paid mine off with no regrets over throwing free money away.

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In addition to the interest on the bond there is the yearly admin fee. This may be negligible at the beginning of the payments but drives the effective interest rate up towards the end of the loan.

I could find no money market account with an interest rate above 5%.

The stock market is up this week but may be down next week. Over time it has increased but there is always the risk of a downturn. On the other hand, the interest and admin fee on the bond will always be there.

I paid mine off with no regrets over throwing free money away.

I’m sorry, but you are taking things out of context. My returns were about 17% this past year off of Fidelity investments. Yes some money belongs in low yields for security. I certainly wouldn’t pay off a 500k loan at 2.5% when that same money makes me over 80k a year in capital gain. The 7% is a VERY conservative mean in return. Fidelity investments has done quite well over our portions in money markets.

[Bill14564]

My returns were about 17% this past year off of investments. I certainly wouldn’t pay off a 500k loan at 2.5% when that same money makes me over 80k a year in capital gain. The 7% is a VERY conservative mean in return.

This year, yes but not 2020, 2022, or 2023.

I have some cash laying around so please name two money market accounts with a very conservative return of 7%.

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This year, yes but not 2020, 2022, or 2023.

I have some cash laying around so please name two money market accounts with a very conservative return of 7%.

I’m not specifically talking JUST markets and CDs, you are. Why be so argumentative about little stuff? There is a place for those investments. When money is piling up, it doesn’t hurt to send some to one of the brokers or just an old fashioned CD. Those still return more than the 2-3 percent on bond payments.

[Plinker]

NO! NO! NO!
The price of the house has nothing to do with the bond amount. It is based on the cost per acre for the area of development times the number of acres in a subdivision divided by the number of homes in the subdivision. The cost of the home has no impact on the amount of the bond.

This post is correct.
Homes within a subdivision may have a golf course view and a pool and therefore a substantially higher home price than one across the street. The bond will be the same.

[mtdjed]

I don't know the costs covered by the bond, but here the word infrastructure. That word would make me think roads, sewers, water etc. All homes in a section would share use of those type of items. That is why price of home is used to allocate bonding rate.

[Nana2Teddy]

In addition to the interest on the bond there is the yearly admin fee. This may be negligible at the beginning of the payments but drives the effective interest rate up towards the end of the loan.

I could find no money market account with an interest rate above 5%.

The stock market is up this week but may be down next week. Over time it has increased but there is always the risk of a downturn. On the other hand, the interest and admin fee on the bond will always be there.

I paid mine off with no regrets over throwing free money away.

At age 71 hubby and I are definitely not worried about the effective interest rate at the end of a 30 year loan. I doubt we’ll still be here, lol. We paid cash for our home, so the bond is our only payment. We’re happy.

[patfla06]

Zero.
Paid it off after 1st year.

[patfla06]

NO! NO! NO!
The price of the house has nothing to do with the bond amount. It is based on the cost per acre for the area of development times the number of acres in a subdivision divided by the number of homes in the subdivision. The cost of the home has no impact on the amount of the bond.

Exactly!!

[Haggar]

I do not think bond interest is deductible if you itemize. Neither is the admin fee. But your investment interest is taxable. You would need a significant higher investment gain than the bond cost to make that beneficial.

Nope - the bond payment on your tax bill (and inclusive interest) are neither deductible as taxes or interest.

[Haggar]

An endless confusion. The bond, you are paying for home support stuff like roads. One way of the other you pay for this as taxes, and or in the price of the home. Sounds like you have a mortgage on your home. The bank can tell you the interest you pay on the bond it is our ours was higher than the interest on the mortgage. You will be told, if you pay it off you will not recover the cost. Not sure that is true. Buying a resale. The SALES PERSON will tell a new buyer that the AC is new or whatever. They try not to open up the bond can of worms. My view. If, you pay 500 for a home and the bond is 30, you paid 530 for the home and the 30 you pay a higher interest on it..
Finances, it always depends. Contrary to my PLAN, we do not itemize so interest is not deductible. Typically as in a mortgage you pay the interest first and then the principal; MATH CONFUSION. If, you pay the interest first and you then decide to pay it off the real interrst you've paid is higher than what you are told-if you ask.

You're not paying the interest first on a standard mortgage.. Assuming you are making fixed monthly payments It's just that in year one the payment you are making goes mostly to interest and a little to principal. Each year the interest goes down and amount applied to principal goes up. On a HELOC you may be paying only interest until you decide to make a payment in excess of the interest due.