[golfnut]

i'm with ya on this one obd and ag, why take on more than ya need...gn

[graciegirl]

Originally Posted by billlaur

could someone explain itand how it works, t.y.

The bond is simply a cost for the infrastructure, the roads, swimming pools, tennis courts, and pool tables that is not added to the cost of your home like it is up north.

For instance. If you buy a designer that costs about $220,000, then the bond is about $20,000, For a smaller villa, or a ranch it would be less and for a larger designer or a premier it would be more.

On new houses you have the full bond, the full cost. On some older homes it has been paid down on paid off. You can choose to pay it off completely or to make payments over a period of time.

So if you think that a Camellia which is about 2000 square feet actual cost is $240K rather than $220K than it is easier to figure out.

[brostholder]

Originally Posted by Army Guy

herbaru, downeaster pretty much it. It is a personel choice, in that some say don't pay it off cause you may move within TV. Then have a new one to pay and that you can't get the price you pay for the bond most times added to your selling price of your old home.
We are also of the mind set and believers in "Dave Ramsy" in that debt is bad and you should live debt free if at all possible. So having saved up the money this past year since we bought, this summer we will pay our bond in full also.

Army Guy

I agree! As new residents, we intend to live in our CYV for a few years to see how our finances go and to see if we can happily adjust to the downsize. I figure if our investments are still doing ok in a few years and we feel a bit cramped in the CYV, then we can upsize within the villages. For that reason, I am not going to pay my bond off because I would then wind up paying 2 bonds if I buy another home.

[bkcunningham1]

For what it is worth, I found this blog from a realtor who deals with TV and I think it is very helpful in understanding bond and other issues in TV. I think the information is correct. If someone reads it and disagrees, enlighten me please.

In her blog, she states why realtors don't recommend paying off the bond, "We do not recommend paying the bond off. The main reason is the fact we cannot resell your home for X amount higher than other homes that are on the market at that point just because you paid the bond off."

http://activerain.com/blogsview/1484...ult-community-

[Russ_Boston]

One correction:

In our particular unit (for example mine is #164) we have all designer homes. Some are larger lots, some are cul-de-sac lots, some are golf course lots, some are standard interior lots. Some homes are 1500sq ft. some are 2200 sq feet. But we all pay the same new bond fee (about 23k). It is not based on size of house or lot.

Other units are similar. That is why the villa units are in units of their own.

Basically the infrastructure costs in that unit are divided by the total number of parcels in that unit. Everyone in the unit pays the same.

This is all described in detail: Link: http://www.districtgov.org/howDoI/PayBond.aspx

[Tom Hannon]

Well described Russ and accurate. But what else should be expected from you. As you said, my lot also 164-72 is in a culd-da-sac and the house is 1961 sq. feet. My bond is also $23,000. For those who are not aware Russ and I live within walking distance.

[rjm1cc]

Originally Posted by herbaru

I have read something like this before. Can someone please help me understand why most people suggest you do not pay off the bond? Please be gentle, I am math challenged.

Using simple math you would pay the bond off as soon as you can. The reason is you are earning a lot less interest on your investments than you are paying on the bond.

However, if your income is all coming from pensions then you might not have the funds to allocate to paying off the bond and you will prefer to pay it off as you receive your income. Remember you want to keep some of your assets for an emergency as getting a loan maybe difficult.

How long you intend to keep the house may also influence the decision but I have not given any consideration to this. Maybe someone else has.

[Pturner]

Originally Posted by GuyWin

I just calculated the interest being charged on my CDD Debt Assessment (Bond) if we finance it over 30 years instead of paying it in full. This does not include the Maintenace Assessment that never goes away.

• Our CDD Debt (bond) in Pennecamp is $20,268.61.
• The annual amount each year for 30 years is $1,652.69.
• The annual rate to amortize $20,268.61 for 30 years @ $1,652.69 a year comes to 7.2%. Over the 30 years we will pay a total of $49,580.
• That's almost two and a half times the bond itself!
• Paying the bond in full would save us $29,312 in interest.

Similar argument can be made for whether to take a mortgage on a home. Say you buy a $250,000 home, pay $50,000 down and mortgage $200,000 for 30 years at 4.75 percent. In 30 years, you've paid $175,586 in interest and a total of $425,586 for the house, including the down payment (but not taxes and fees).

But maybe you don't plan to live there for 30 years or maybe you can afford the payments but not a lump sum to pay cash for the house.

Most of us, in our working years, took a mortgage. In retirement years, many of us do not. Costs, individual plans and circumstances and individual values factor into each family's decision. So there is not a good one-size-fits-all answer.

[Minnesotalyn]

Tom & Russ, Our lot is in Unit 162 and our paperwork estimates our bond at 24,500 and that's on a 240,00 Iris. I like yours better.

[Tom Hannon]

Hi Minnesota

I have an Iris also. And a large piece of property. Why is your bond higher? Russ and I live in Buttonwood.

[Russ_Boston]

Originally Posted by Tom Hannon

Hi Minnesota

I have an Iris also. And a large piece of property. Why is your bond higher? Russ and I live in Buttonwood.

Each unit is separate. It depends on the density of the unit. See my link for an explanation.

[Minnesotalyn]

Looking at our paperwork we (Unit 162) has 74 lots, and our Maintenance Assessment is estimated at 700.00 a year

[Minnesotalyn]

Sorry that's in Buttonwood between the neighborhood pool & Fishhawk Rec Center.

[Tom Hannon]

I can walk to the neighborhood pool and rec center. I am one block in on Buttonwood Run and Triggerfish

[Kelsie52]

We are also in Buttonwood --South of St Caharles --next to the models Section 157 ---our bond is 19,400 ---