Bonds. Whats the real deal?
 

I have heard that some homes have bonds when purchasing. I am under the impression that certain areas do not have them (like the older sections) and the newer sections do have them. What exactly is a bond and how is it applied to TV properties. Thanks.

Realtor?
 

All new homes have a BOND. That is the price of the infrastructure put in place before the purchase and includes streets, rec centers, and all things that happen before undeveloped land is built on; water, electrical, underground lines etc.etc. In our prior lives the price is included in the selling price. Here the developer does it differently and issues a separate bond that can be paid off to avoid the interest or allowed to continue in case you may sell again and allow your home to have a lower looking selling price. (Many villagers move into three different homes. The cost of moving is much lower here)


In some older areas the bond has been paid off or paid down or in the historic areas northeast of 441/27 there was no bond at that time. (I think)


If you want to read dozens of threads about this issue, check this out.




Talk of The Villages - Search Results

New Home Bonds
 

Gracie, you "hit the nail on the head!". Most of TV is setup in 10 community development districts (CDD'S) and thus by Florida law the Developer can issue bonds and pass them down to the residents for all the "things" mentioned above. The so called "historical district" of TV does not have a bond. New homes and Villas have a bond ranging from 15k to 50k depending on location.

This is all explained when you purchase a new home in TV.

You might add that any home in Lake County does not have a bond. Lake County does not allows these type of bonds, therefore the new villages in the Fruitland Park town limits will not have bonds attached.

Here is the full explanation.
Village Community Development Districts

Many preowneds are available where people have paid off their bonds.

Yes, Lake County (and town of Lady Lake) that is west of Rt. 441/27 did not "cooperate" with the original builders and insisted that home sales be done the typical "American" way, that is, the full cost is contained in the sale price.

What is it called when not done in the typical "American" way?

Yeah. What does that mean????


Apparently this way is working. It is the fastest growing area in THE WHOLE UNITED STATES.


Thank you Mr. Morse.

Bought a five year old home here, and one of the selling points on the listing was that the bond was paid. I had no idea what that really meant and didn't consider it an important consideration. And strangely it did not come into play during the price negotiations. Ignorance was bliss, I guess.

So to recover the cost of the infrastructure, will they raise the price of the houses that are built in that section of Lake County?

Definitely. As I recall, designers will start at $500,000 and CYV's at $200,000 plus. The sky is the limit for premier homes. That was the plan when the Fruitland Park section was announced. Of course, it is all subject to change depending on market conditions.

All these authoritative statements including my own are just guessing about what "they" will do and what "they will ask.


I am just glad we bought when we bought. I hope it will be a nice plum for the kids.

This is the way I see it........In most everywhere else the cost of roads, sewers, water lines etc is included in the price of the home. Here it is billed separate and called a bond. In otherwords here you buy a 300,000 home for 280,000 and have a 20,000 bond that you pay for yearly or pay off all at once.
By doing it this way your home is only valued at 280,000 and this is the amount on which you pay taxes, saving you taxes on 20,000. Of course this is also an advantage to The Villages since they can give you more home for what seems like a cheaper price.
As I said, this is how I see it and I hope others will correct me if I'm wrong.

I have a couple of thoughts and questions.

1. Under the current bond system does the developer mark up the cost of the infrastructure before it is becomes a bond or is the bond strictly the cost of the infrastructure without being marked up?

2. If the answer to the above question is that only the cost of the infrastructure is passed on as the bond. Then in the Lake County Fruitland Park area of The Villages where the developer is doing the infrastructure through his subcontractors then as a normal business practice the developer will mark-up the infrastructure the same as he would mark up any other construction in the development.

If #2 is correct then the current bond system as we know it may be a better deal.

I don't know the answer to #1 but perhaps someone else may.

The Developer does.

Bonds are very common in California. First time I heard someone in TV question a bond, I was thoroughly confused. I was under the impression that bonds were common throughout the U.S., at least for new developments. Funny how things we take for granted are so different and strange to others.

Bonanza - I recall reading when Fruitland Park was announced designers would start at $500k. I believe the lots will be larger, don't know how bare bones they will be, but since the bond will be included in the price of the home they will definitely be priced higher. Wonder how that will affect resales in the preowned section. They may sound like a better deal at first glance.

This information was all contained in the Development Project proposal the developer submitted to the Fruitland Park commissioners last fall.

Since the cost of the bond is currently now about $24,000 on new designers now offered for sale , I would guess that it won't be much more. Perhaps the cost of the land from the dairy was greater than had been previously paid for land. I know a lot of owners adjacent to The Villages must have been waiting to sell their land at very high prices.


We will wait and see. Watching it all unfold gives us a front seat to history and I find it very interesting. The Morses are smart cookies. And we are smart people to live here.

How do I find out about Fruitland Park ?
 

how do I find out about these NEW homes with no bonds in Fruitland PArk ?
Have they started builing yet ? Is it a nice Village and close to all activities and interests ???? Thanks !

https://www.talkofthevillages.com/fo...started-98241/


Here is one of many threads about the Fruitland Park development. As I recall, the first homes will be available in the fall of 2014. Because there are no infrastructure bonds allowed in Lake county, the prices of the homes will include those costs. Designer homes will start at $500,000, and CVY's will be in the $200,000 plus range.

You can search for other threads on this subject by typing in Fruitland Park on the search drop down at the top of the page.

I always thought this was a Villages marketing ploy to make the home seem cheaper than it actually is.

If thats the way you want to look at it. Most of us looked at the total package.

The cost of infrastructure, the cost of land and the cost of the house are listed separately.

It seems to me anyone with business sense would analyze this practice. This doesn't mean anything is wrong with this practice but I can see how some folks could get distracted as to their total costs

It's simple math. You add the cost of the home, plus the cost of the bond. That equals the total cost of the home. We knew upfront with every property we looked at what the two costs would be if we were to purchase. It isn't a ploy when a second grader can add the two numbers to come up with a total.

Here is the way, I see it:

1. New home will automatically come with, bond payments.

2. Pre-existing homes can have no bond, very little bond, or are still paying their bond.

As my uncle used to say, "first you see what you like and then buy what you can afford".

3. You must own the house, and not have the house owned you!!!! If the bond puts you in a position with strained finances, then look for a more affordable home.

4. the only place on earth where you live like a miiliionaire, at not millioaire prices. IMHO

I wouldn't let the bond, stop me from enjoying this great place, called TV. :smiley:

yep, more costly new homes in Fruitland Park
 

...I specificly asked this question of a realtor and he did confirm that basic designers would begin at $500,000 cost.

So, when I see a new home listed on the Villages website for New Homes for Sale, and it is a $350,000 price tag, does that INCLUDE the bond, or is that just the price of the home, and then we would have to add whatever the bond costs ON TOP of that price tag?

And what about used homes. If a used home is listed as $300,000 and it states on the website that there is only $7,000 left on the bond..........does that mean it is already figured into the sale price of $300,000 or would it actually be $307,000?

Sorry for the stupid questions, but I'm new to all of this too!

In both cases the price of the home is what is listed, and in addition you have to add in the cost of the bond to come up with your total purchase price. That's why preowned homes with upgrades and where the bond is paid off, are often such good deals.

Now that is an eye opener! I have been looking at home prices, and if they don't quote the cost of the bond, then you really have no idea what the actual cost of the home is. Very difficult to house hunt on-line if this is true.

Always check the County Auditors page for the tax and bond amount on pre-owned. Many times the listing will show the tax amount, but not include the bond amount. Can be misleading if you don't know all of the figures.

This really has me concerned. How can you be sure you have the total cost, especially on new homes? Is there a way to confirm? Thank you.

The way we see it, the costs of building water, sewer, streets, curbing etc. were included in the price of the lot we bought to build our homes on in other states. It didn't seem strange here to see a breakout of those costs.

All the bond amounts of various housing "units" here are available at http://www.districtgov.org/departmen...rtization.aspx

There at the link, the original per-home bond amount is shown with the interest rate assigned in the beginning, and the bond is amortized over 30 years, and the mortgage-like payments on it are billed with the annual county property tax bill.

Some homeowners choose to pay off the bond entirely to get rid of the annual payment that is added onto your county property tax bill, and to avoid the interest charges over the years.

Many others do not pay off the bond, because the remainder of the bond principal will be paid by the next buyer/owner. (The bond principal owed, if not all paid off, goes with the home.)

A TV sales rep can tell you how much of the bond is remaining on a used home being sold by TV, and they can tell you the bond amount on a new home.

An MLS agent can tell you how much of the bond is left on an MLS-listing used home.

The annual amount due on a home bond not yet paid off in Sumter County is shown on the property tax bills here, as "Non Ad Valorem Assessments". https://sumter.county-taxes.com/public

The best way to know bond specifics is to ask a TV sales rep or MLS realtor about a specific property listing.

I think pretty much everybody who's buying a lot to build on, in a development/subdivision in other locales, is paying the same "bond" costs, but these infrastructure costs are just blended into the lot selling price.

That infrastructure cost is why development lots are more expensive than a half acre in the pasture where one would have to build a road in, and build septic system, well, etc. etc. One way or the other, the home buyer pays for that.

I agree, it certainly makes househunting more challenging.

Thank you!

I was hoping that that realtors and sales reps were up front about it, and that it wasn't one of those hidden costs that surprise you later on. Regardless, I now know some additional questions to ask, based on the good advice in this thread.

Help me here folks. This is roughly how you can figure it. At least two years ago it was. A new designer has a bond of about 23K. A new Premier of about 50K. A new ranch of about 12K(?) and a villa?


The cost of the bond is not included in your mortgage if you choose to have one. It is a separate charge with a high interest rate that many choose to pay off. We are not one who chose that way. People have told us that your first home here may not be your final choice and it is easier to sell a home with the bond not paid off, as it makes the asking price appear lower. We have already bought our second new home, didn't pay the bond on either and who knows what we may decide to do. Homes are easy to sell and the cost of moving is MUCH lower here.


This cost of the infrastructure NOT being included in the price of the home is new to most of us. It seems to work once you get the concept.


The homes are nicely built. I have lost track of how many homes we have had built or moved into new in our lives...over 10 for sure. The process here was the best and the things that have to be fixed are few and done immediately.


I DON'T work for the developer. Don't KNOW the developer. I am just a happy and satisfied villager like many, many here.

When the land was transferred to First Baptist of Leesburg, it was appraised at about $50 million. Was sold to TV for about $10 million from what I was told.