Bond Prices
 

Can anyone tell me what the bond cost would be for a Designer home in the following villages? Fernandina and Gilchrist
What is the bond cost of the CYV in Megan Villas/Sanibel?

I am going to guess about 24K on the designer. Designers bond cost was about 21K in 2008 and our premiere was 48 last year.

$19,500 in Fernandina #215

Bond Lookup VCDD
 

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Fernandina 205 is just under $22,000.

Fernandina 207 around 40K before interest etc.

yes, but 207 is a Premier section, not a standard designer lot.

Who gets away with charging 6.93% yearly interest in this day and age? After paying $1114.87 per year for 30 years, you would wind up paying $33,446.10 plus fees, for the $13,338.17 bond And from what I understand that interest is not tax deductible.

IMO, it would be better to add the cost of the infrastructure into the price of the new homes like a lot of developers do. Obviously, having the bonds separate keeps house prices lower.

The amount of interest seems excessive to me too.......but It is a marketing strategy to have the amount of the infrastructure separate from the price of the home. Different to be sure. But not illegal, immoral or fattening.

Bond interest rates are set at the time the bonds are sold and are not controlled by the Developer. The buyers are the ultimate determinant of the interest rate. It is a financing method. My suspicion is that it was cheaper to finance by this method than through a development loan by some private finance source( bank, insurance co. etc). The total cost of a home in the Villages is and always has been the sales price plus the bond. The bond is essentially a first lein on your home.

I guess if it concerns you, it is possible to get a home equity loan at 2.99%

A $20,000 loan at 6.93% is $132,

At 2.99% is $84.21

or $17,000 over 30 years.

But I think the Interest quoted on mine was 5.5%

Doesn't the developer "issue" the bonds and did so at the rate they wanted to?
Not the same as corporate bonds and general obligation etc.
At 6% interest I'll take all the bonds I can buy.
Give me 7% and I'll go out 30 years!
We had a bond in Orlando too although not as much as here.
Our first offer from someone to buy our house included that they would "pay the bond" annually like we did.
The offer was good but went with renting the house out instead.
I think it will work the same here so no real reason to pay off the bond.

Most of us will not live long enough to payoff the bond,,, I just look at as another thing my kids will have to do when they sell my stuff at the estate sale.... Just more blood money squeezed out us ,,, for the expensive koolaide we have drank

Disclosure Required
 

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If there were no bond, the cost of infrastructure would still need to be paid and would be included in the price of the house. There is no such thing as a free lunch. It is not blood money and ad hominem attacks are not useful.

i just bought a designer home and also surprised at the interest rate, very high - high 6% range. Debating should I take a low interest home equity loan and pay off over 10 years, or should I take money out of the bank and pay it off, or just leave it alone, it's that interest payment that kills me and not being able to deduct it off the taxes, as I understand you can't take a deduction from what I've read and talked to an attorney.

Yes, that is the case you are not allowed to deduct it off taxes. That interest rate is ridiculous in this interest rate environment. The question is how long you will live in the home. There is a break even point, off the top of my head I'm saying it was 7 years (someone would need to check), could be wrong, whereby if you stay in the house 7 years, you're better off just paying off the bond upfront, because of the extra interest you're paying each year. You'd be surprised how fast 7 years comes up. We paid ours off, and I'm glad we did. I figure if we want to sell our home, it will be an inducement to attract buyers who are looking for a low bond or "bond paid" home.

If your bank account is not paying 6%( and I'm sure that it isn't) I would consider paying off the Bond. Payoff would be the functional equivalent of investing at 6% guaranteed return. That assumes that you would be left with sufficient cash reserves. If you do the payoff and need funds later, you can always do a home equity loan. There are not many oppurtunities for guaranteed investments at a 6% guaranteed return at this time.

It's still not a lot of money on a monthly basis to get that bent out of shape about, we pay more for our amenities fees every month or cable, those R not tax deductible.

I think you should consider not paying it off. You would be amazed at the movement between homes in this place. In our village, almost 40 percent moved from another village.

When we first were looking at homes here, we ran into a couple who were looking for the exact same model but with a view. They said they sold their house in a week by themselves.I was totally surprised that someone would want the same house on another lot. I have found that it is much more common than I could have imagined. But we had just gone through all of the rigamarole of moving and I KNEW I would never move again...but we did..last year.

It is not only that people want a bigger house, sometimes they want a smaller house with less expenses.

There are all kinda stories in the Naked City. ;)

You may not think you would ever EVER move again, but very well may find yourself doing so, and if you do the lower list price without the bond added in is more of a draw to prospective buyers.

That's my story and I'm stickin' to it.

:thumbup:, I agree, it is always easier to sell at a lower price

What would the benefit of not paying off the bond be in the scenarios you describe.

What do you mean by "blood money"??

A home purchased at 228k plus 21k would be listed at 249k or more.. if you pay off the bond but it can be listed at....a lower price if you do not.

There is NO difference but people may look at it sooner as it does not require the initial amount of cash or money loaned. A marketing situation but unfortunately not all people who are new to the Villages can see the difference and may be drawn to a seemingly lower priced home.

PLUS, I am guessing that many people were like we were when we first bought here... Are we gonna like it? What if we don't and want to sell it? We can sell it quicker at a lower price if we don't pay off the bond.

Can someone enlighten me as to exactly what Bonds are and what they are for?

Is there a bond on all new homes? We are thinking of buying a new home vs. a pre-owned home, but there is nothing in the new home listing about a bond.

An example is a 2/2 in Fernandina VNH#: 952072. Price is $139,513, if I were to buy this one, is there a bond to pay as well?

Some of the pre-owned villas listed have no bond and some have low-bond, but there is nothing at all that I can see on the new homes.

yes, those R about $13,000 bond add on paid over 30 years about $60 a month

Welcome to TOTV. The bond is for the infrastructure in your Villages and is spread over the acreage.
It is worth mentioning that when looking at a thread if you read all of the posts the information you are seeking may have all ready been explanined.
For example, reading post #4 you can see anyone can determine the bond on any homesite by going to the provided link.

Hi Bogie,

I did read all of the posts, but none of them said what the bond was for and whether all of the units had to pay. Because the info was not there, I had to ask.

But now I understand that it is similar to a development fee.

It may be helpful if Villages sales could put this info in their property lsitings, so people are aware up-front of extras that would be due after purchase.

thanks, Jim

"It may be helpful if Villages sales could put this info in their property lsitings, so people are aware up-front of extras that would be due after purchase."

I agree and wish it was included in the price of the home, but then they would appear to be too expensive for what you are getting. Believe me you will be told about the bond at some point by your REALTOR or sales agent - they have too much to lose not to disclose this information. The key is how well they explain it or if they kind of "poo-poo" it likes it no big deal. I don't have a problem paying the bond - I do have a problem with the interest rate in this financial climate

The price of the house is the cash consideration plus the assumed liabilities no matter what they are called. If a realtor does not clearly point this out to a buyer , it is at least unethical(IMO). I find it hard to believe that many buyers do not consider the total purchase consideration when comparing prices unless they are misled by the sales person.

In our case(new home) we questioned the bond issue at the outset and our sales rep was unclear herself about the implications and options open to the purchaser.

We are cheerleaders for TV and have great respect for the "Developers " and what they have done . The confusion on the Bond issue needs to be dealt with since it is not the common method of financing in most other areas of the country.

From the Nuts & Bolts area of this site;Bonds
The purpose of the bond is to recover the costs of the infrastructure (sewer, water, streets, electric, cable, etc.) in your section. The bond is calculated based on the cost of the infrastructure for that section divided by the number of houses in the section. The annual amount of the bond payoff will be part of your property tax bill. I am pretty sure that the bond is a 30 year bond at 7% interest. It is like a 30 year mortgage. The bonds are fairly high south of 466. The bond goes down very little each year as most of the payment goes to interest. Be very sure to cover the bond, bond payment, length of the bond interest rate and payoff options with your sales rep or realtor. If you are buying a pre-owned property, be sure to find out how much is left on the bond.

From District Government site , www.districtgov.org ;
What is the Bond Debt Assessment for?

The bond debt assessment reflects each lot’s proportionate share of the cost of building the infrastructure within its District or for which its District has responsibility. It is the most equitable method of distributing costs between the properties that benefit from the infrastructure. Infrastructure includes storm water systems, underground pump stations, water retention areas, curbs, gutters, streetlights, transportation trails, underground piping, etc.

How does the District arrive at the amount? Does everyone pay the same amount?

The Bond Debt Assessment was set at the time the bond used to build the infrastructure was issued. The formula for calculating each lot’s proportionate share starts with the total cost of the bond (including interest) issued to pay for the infrastructure. That cost is divided equally among each assessable acre in the “phase” of the District for which the bond was issued. That gives you a cost per acre. The cost per acre is then multiplied by the number of acres in the unit in which you live. That gives you the obligation for the unit as a whole. The unit total cost is then divided by the number of lots or parcels in the unit, and that computation gives you the amount of the assessment levied against each property. Therefore, each lot within a unit pays the same amount.

How do I pay for the Bond Assessment if I don’t pay it in full?

These assessments are scheduled to be repaid in annual charges that are in the Non-Ad Valorem section of your county property tax bill until they are paid off. The annual assessment includes principal, interest and an administrative fee.

What kind of lien is it? If I don’t pay if off, what happens when I sell my home?

The bond assessment is a lien on the land only and is fully transferable upon sale of the property. As such, the new owners are responsible for paying the remaining amount, either in full or annually on their tax bill.

Should I pay off the bond debt?

You should contact your accountant or financial advisor for advice as individual circumstances vary.

Can I pay by credit card?

No, the bond can only be paid by check (personal or bank) or money order.

Can I make a partial payment of total assessment due?

No, you cannot make a partial payment on the assessment due. Florida law requires payment in full or through the annual assessment on your tax bill.

Why is the payoff deadline late in July?

The payoff figure is good only through late July because the annual assessment roll must be certified to the Tax Collector to remove the assessment from your tax bill. It would be too late to guarantee removal of the assessment from the tax bill you receive in early November if payment was made after the payoff deadline.

When will I receive the Release of Imposition if I pay off my bond in full?

You should receive your copy of the recorded Release of Imposition approximately 4-6 weeks after paying off your bond. If the Release isn’t received by then, please feel free to call our office at (352) 751-3900. Upon receipt of your copy, it is advisable that you keep it with the deed to your property.

What happens if my bond is paid off after the cut-off date in July?

You will receive one more year of annual debt assessment on the November tax bill. The amount of the payoff will be reduced slightly for the amount of principal included in the final annual payment to the Tax Collector.
Remember: Even if you pay your bond assessment, there will continue to be an annual maintenance assessment that pays for the ongoing costs of maintaining the infrastructure.

This is valuable knowledge as bonds were not mentioned to us at the Villages Lifestyle Preview. I assume that the bond would have been mentioned to us during the buying process and not at closing.
Now we know, we will ask before we sign on the dotted line what the bond will be.

Thanks Bogie, a lot clearer now

This has changed
 

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Assume Nothing
 

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The change is fully explained on the District Government site;
Bond Interest Refund Procedures

I would like to know why other retirement places in the area do not have Bonds?

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I don't know. The Villages is unlike anyplace I have ever been.

The short answer is because they were not setup as community Development Districts. In "theory" the other retirement communities developer charged of the infrastructure in the cost of the house.