Bond Payment
 

I'm back up north so I have to communicate with my salesman via email. I just asked him the bond amount on some CYV's and he said $14,389 or $1118 a year for 30 years. My question is, if you choose annually do you receive one payment notice a year or do you pay monthly?

You'll get billed and will pay monthly.

Correction: Ignore what I said. Ohiogirl got it right. I do pay monthly but through the mortgage escrow, and I got that confused with the amenity fees!

Depends
 

If you have no mortgage, it just comes on your tax bill and you pay it annually and you have one chance a year (I think by July), with a separate notice, to pay it off. You could pay it off in between annual notices, but you would have to pay all the interest for the year in between anyway. At least that's my understanding.

Most here advise that if you are sure you are staying in that house, you may want to consider paying it off - if you think you may be moving in the future, don't pay it off.

If you have a mortgage and have your taxes and insurance escrowed by your mortgage company, you will also be charged for the bond and they pay it, just like they pay your taxes.

Thanks for the info, I won't have a mortgage. I had planned on getting a patio villa and paying the bond at closing since it's only $10,400. However, I've been looking at used ranchers and CYV's which are more expensive plus the bond is more. It's just the case of do I want more house and the tax bill to go with it or a more affordable house and no tax bill.

My opinion.................The bond is basically an annual tax payment; you are paying for the infrastrtucture. It makes no sense to pay it off.

The bond has a principal component as well as interest. Depending on your financial situation, it could make a great deal of sense to pay it off.

JMHCPA'sO

Changing the subject a bit.

Does anyone know the dollar amount for the Designers in the new village of Sanibel??

The bond on Premiers in Pennecamp and Laurel Valley is $48,000.

WHOA!!! :$:

Bill :)

:loco:

$48,000 that woke me up

I have been reading about the bond. Not really good with these kinds of things and am hoping that someone can explain the concept and methodology of the bond associated with living in a TV home...in plain English


:confused:

The way I understand it is before the first house is built in any village, the builders go in and put in the streets, underground utilities, mail boxes, community center and anything else that is not a home. After they get that all done, they take the total cost of the construction and divide it equally among the homes to be built, and that will be your bond. Or at least something close to this.

In most areas up north the infrastructure is in the price of the home. Here it is the bond. So if a builder in the north builds 10 houses and he wants to sell them for $500,000 but he spent $100,000 puting in sidewalks, sewer, water, and other infrastructure for the development he would sell each house for $510,000. In TV they sell the house for $500,000 and you pay a $10,000 bond.

It's not divided "equally." Depends on the density of the type of section - e.g., premiers have the largest lots - all premiers in the new District (not done by Village, but District) will have the same bond, Designers will have the next most expensive, etc.

In the past, ranches and designers had the same bond, not sure if that is true anymore or not, but it could be, now that ranches are called "cottages." Also not sure if CYVs and patio villas have the same bond or not - think they might.

And before someone asks again, the size of your individual lot doesn't matter, just the section of homes you are in in that particular District, i.e., all designers within the same district will have the same bond amount, etc.

I thought I would add in a couple of things regarding bonds.

First, instead of buying a new house with no rights of negotiating the price, consider buying a resale house. You can negotiate price with the seller. Also, the bond will be lower (or even zero) as compared to a new house. My bond was only $2,500 when I bought a resale about 18 months ago as compared to friends who bought new and have about $23,000 bond. I have a much nicer home with much lower bond.

Secondly, I have seen some people who want to pay off their bond will take out a home equity loan; pay off the bond; and then the interest on the home equity loan is tax deductible. The interest is a lower rate than the non-tax deductible bond interest. Disclaimer: Check with a person who knows for sure.

I hope these ideas are helpful. Any way you do it, you will love The Villages.

Tbugs, FWIW - - -

I believe some folks just want to have new homes......probably for a variety of reasons. For example:

a.) You get to have some input/decisions regarding the details of what goes into a new home,

b.) You want to be in the area surrounding 466A (at present), and/or

c.) You simply want a brand-spankin' new home.

As with most transactions, emotions do come in to play. You want what you want for whatever the reasons, even if you could have done something perhaps a bit more financially favorable by going a different route - buying pre-owned, buying a smaller home, etc.

Re: the home-equity loan/HELOC to pay off the bond - I believe in many/most cases nowadays, those types of loans carry variable interest rates whereas the bond rates are fixed. Granted, you can probably get a lower initial rate with the new loan, but then you're rolling the dice with what might happen with the interest rates as time goes on. However, on the other hand - as you stated - the interest paid on the loan should be tax deductible - the interest you pay on the bond is not.

No perfect answer(s) for everyone!! :wave:

Bill :)