Talk of The Villages Florida
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Talk of The Villages Florida (https://www.talkofthevillages.com/forums/)
-   The Villages, Florida, General Discussion (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/)
-   -   Bond Issue (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/bond-issue-299461/)

Challenger 10-29-2019 04:47 AM
So many totally erroneous posts on this issue . Readers beware on this one

retiredguy123 10-29-2019 05:26 AM
Quote:
Originally Posted by DARFAP (Post 1691782)
Check your property taxes. The bond is paid as an ad valorum with your taxes. It is not part of your financed mortgage payment. There is no interest on it.

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The term "ad valorem" means "based on the value of your house". The bond is not based on the value of your house, so it appears on the "non-ad valorem" section of your tax bill. You can look up your amortization schedule on "districtgov.org". The payments include interest and an annual administration fee. If you itemize tax deductions, non of the "non-ad valorem" payments are tax deductible if your house is your primary home.

skip0358 10-29-2019 05:54 AM
Paid ours off right after we bought the house in 2009!

Chatbrat 10-29-2019 05:59 AM
Ditto, paid ours off after bought in 2011--I was taught ," interest makes rich people rich," while it keeps poor people poor"--Benjamin Franklin raved about the benefits of compound interest--learned this in elementary school

Marathon Man 10-29-2019 06:46 AM
Quote:
Originally Posted by Challenger (Post 1691836)
So many totally erroneous posts on this issue . Readers beware on this one
Yep. This issue, deed restrictions, etc. This is a place for discussion, not information.

Challenger 10-29-2019 07:17 AM
Quote:
Originally Posted by Marathon Man (Post 1691863)
Yep. This issue, deed restrictions, etc. This is a place for discussion, not information.
When stating "facts" posters should be sure that they are , in fact, "facts" . Otherwise readers , especially newbies are misled and may make costly wrong moves. Opinions ?

billethkid 10-29-2019 07:22 AM
Quote:
Originally Posted by petsetc (Post 1691834)
Think of the bond as a second mortgage that is automatically assumed by a new buyer.

If you pay it off in the first few years of ownership and you decide to sell/move, you would need to add what would be the remaining balance to your selling price to be even. That would mean you would have to sell for x dollars more than someone selling that did not pay off the bond, a tougher sell. Since most Villagers move a few times, this is a real consideration.

Also, I think if you are earning near or more than the bond interest on your investments, it makes little since to give up that liquidity to feel debt free.

Also, since it is tax time, remember that if you pay early you get to take the early pay discount on the bond too.
I get the most satisfaction when I look at my bottom line. I believe one has the option to manage debt to enhance the bottom line....earning more scenario is what guides my actions.

So for me the answer is simple....my satisfaction has all to do with whatever allows me to earn and accumulate more each year.

Bay Kid 10-29-2019 07:23 AM
I paid mine off when I bought my used home. I look at this like credit card debt, bad debt. Interest with no tax write-off.

billethkid 10-29-2019 07:35 AM
Not all debt has to be "bad debt".

One example; If one has sufficient funds to pay of the 3 or 4 percent interest rate home mortgage ........do not pay off the mortgage....instead invest the same amount where one can earn 6% and better. Hence allowing a 3 or more percent interest earned each year......by keeping the mortgage.

Not a matter of right or wrong or good or bad....just a very personal and to each his own comfort choice.

TVMayor 10-29-2019 08:00 AM
Homes in Lake County never had bonds and district #1 north of 466, bonds are paid off. District #2 bonds will be paid off soon.

A tip for people looking to buy a pre-owned home.

Challenger 10-29-2019 09:23 AM
Quote:
Originally Posted by billethkid (Post 1691880)
Not all debt has to be "bad debt".

One example; If one has sufficient funds to pay of the 3 or 4 percent interest rate home mortgage ........do not pay off the mortgage....instead invest the same amount where one can earn 6% and better. Hence allowing a 3 or more percent interest earned each year......by keeping the mortgage.

Not a matter of right or wrong or good or bad....just a very personal and to each his own comfort choice.
Another view- Paying off the bond is essentially an absolute guarantee of a reduction in expense equal to the interest cost. Other than USgovt debt, I know of no other absolute guaranteed return. Regardless of the claims of the issuers.

Barefoot 10-29-2019 09:38 AM
Quote:
Originally Posted by billethkid (Post 1691880)
...instead invest the same amount where one can earn 6% and better.
I'm curious - where do you invest that earns 6% and better?

New Englander 10-29-2019 10:08 AM
Quote:
Originally Posted by petsetc (Post 1691834)
Think of the bond as a second mortgage that is automatically assumed by a new buyer.

If you pay it off in the first few years of ownership and you decide to sell/move, you would need to add what would be the remaining balance to your selling price to be even. That would mean you would have to sell for x dollars more than someone selling that did not pay off the bond, a tougher sell. Since most Villagers move a few times, this is a real consideration.

Also, I think if you are earning near or more than the bond interest on your investments, it makes little since to give up that liquidity to feel debt free.

Also, since it is tax time, remember that if you pay early you get to take the early pay discount on the bond too.
My first home purchase in TV was a pre-owned Patio Villa. I was going to pay off the bond but my villages sales agent advised me not to pay it off because of the very same reason you stated. Sure enough, two years later I bought a courtyard villa and sold the patio villa. If I had paid off the bond I would have to add that to the sale price of the home. It would have made it a very expensive Patio Villa.

KEVIN & JOSIE 10-29-2019 11:05 AM
Makes you wonder if by adding the bond to the cost of the house makes it overpriced? If the bond was added to the home price where it would be deductible, would they sell better?

Velvet 10-29-2019 11:16 AM
You pay property tax on the market value of the house. The market value is influenced by the price of the house you sell/buy it for. If the bond is paid off and it is added to the price if the house then the buyer will be paying for it in property tax. Same goes for furniture, if you increase the cost of the house because the furniture is included, or renovations etc.


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