Bond question
 

Hello All!
My husband and I are considering moving from CT to the Villages. There's a lot to learn and I am doing my best to gather as much info as possible. Of all the things I have read, or have been told, one thing disturbs me the most and that is the issue of Bonds. Can someone please explain CLEARLY what a bond is, what is expected of an owner, and how much money is needed or must be paid. I was told that thousands of dollars are required at closing to pay for a bond. That a bit frightening.
I appreciate any help and I thank you in advance for your kind a prompt reply.
Jeanne E. Rogers
jeanne.rogers22@gmail.com

If you click on the search button on this site you will find exactly what you need... this issues has been discussed at length several times over.

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The bond is an amount that pays for the infrastructure of The Villages. It is separate from the sales price. It is now around $25,000 to over $50,000.

It is paid in increments every year and is on your property tax bill. The interest and the bond payments are not tax deductible.

:wave:Residential Bond Assessment Information

Read this and use the QUICK LINKS for FAQs.

This is correct. Bonds are issued for the area in which you live. Where we are all from....bonds were included in the house price. So the easiest thing is to add approximately;

25K to designers and Court Yard Villas
14K to patio villas and cottages and ranches
50K to Premier homes.

Some people pay them off, but many opt to pay each year, even though they may buy their home outright. That reason is usually that should they want to sell their home they can ask a lower amount asking price.

Nothing underhanded or subversive. You should also talk about The Villages being a CDD form of government. I have found both to be different but just fine.

You can call VCDD office to get the exact bond information for the area where you are buying. You have the option to pay over time (30 years), and ours was over 5% interest rate. NOTE: you cannot claim this on your taxes! As mentioned above, if you do a search on this site, you will gets lots of info, especially about paying this off. IMHO, talk to your financial advisor about the best approach on keeping the bond yearly payments or paying it off.
If you are buying new you will have the full amount of the bond, if you are buying resale, some of the bond has already been paid off, or possibly paid in full. As for closing, yes be prepared to have several thousand dollars in closing costs, your realtor or sales agent should have the approximate numbers.

In 2011 when our Village was new, this is what the bond amounts were;

Patio Villa - $10,000
Courtyard Villa - $14,000
Cottage - $21,000
Designer - $24,000
Premier - $40,000

These amounts are fixed for 30 years or can be paid off in full. Payments for example, our courtyard villa is $1100 a year added to our normal property tax bill in November. If you buy a resale, the bond will be partially paid down and you assume it, or it may of been paid off and that is reflected usually in the asking price.

:agree:

This site has a lot of information in addition to bonds.
Village Community Development Districts

VT is right again. But to the point of the bond, none of the closing costs are higher because of the bond, it is a separate issue

None of the closing costs are part of the bond. My guess is that the real estate taxes and bond payment will be about half of what you are paying in Con. for a comparable home. Moved from Ill. $7000 annual tax bill dropped to $4000 tax and bond in Fla same square foot house.

Where in CT? You'll love it here. Send me a private message if you want some referrals.