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.