My husband and I attended the resident academy with the presentation given by Mr. Rohan and there was an additional talk on how to save water when sprinkling your lawn. They did not mention bonds and who the interest is paid to. This might be a good slide to add to the presentation. I would like to be an investor and buy some of these bonds. It is hard to make this type of interest. Does anyone know where I can buy these bonds. I want to get rich quick (LOL).

I called about getting bond at a lower interest rate & was told the developer is only one that can apply for a lower interest rate after 10 years. We got a good rate for our mortgage but are paying almost double interest on bond. You definately are paying interest on bond. We are paying high bonds & now hit with huge increase in taxes for massive Village expansion & seem to have no say in anything.

Some posters have said that the interest rate on the bonds is 7 percent, but it depends on when your bond was originated. My bond was originated in 2015, and the interest rate is only 4.3 percent.

If John Rohan was the primary speaker then you were probably attending the CDD Orientation held on Thursdays at Lake Sumter Landing. The Resident Academy is a much more detailed presentation and is given only once a quarter, last about 5 hours, and has about 250 PowerPoint slides in the presentation. Far more detailed than CDD Orientation.

Not to get too far off topic...I have owned various Villages CDD and Utility bonds for 10 years. They are a good tax-free investment.


When they are initially offered, big institutional investors gobble them up at par value (like the 7% in CDD 9 and 10). Eventually, some come up for resale on the secondary market. The price you pay may be adjusted to reflect current market values. Those 7% bonds might cost you 117 so your effective yield is closer to 4% which is more the going rate. The initial rate is guaranteed for 10 years at which time the issuer (the CDD) can call them in and refinance them at the going rate...which has been done for CDD 5,6,7 and probably 8.



A good reseller is FMS Bonds out of Boca Raton. Edie Nasello, 1-800-367-2663.


To tie back in to the OP, the Developer sets up the initial financing but then the CDD manages the flow in and out from there. The CDD makes the decision to refinance them and lower your bond cost after year 10, if market conditions indicate it is prudent to do so.

The decision to pay off your bond should be based on a number of factors.
Are your investments earning (long term basis) more than the interest rate on the bond? If yes don’t pay
How long do you intend on hanging on to your home? A short time frame generally implies the bond should not be paid.

2016 Bond Interest was 3.9%

https://www.districtgov.org/departme...0Unit%201F.pdf

2018 Bond Interest is 4.3%

https://www.districtgov.org/departme...f%20Villas.pdf

Any idea why is there is a maintenance fee when the bond is paid off? What are they maintaining.? Love to hear a reply.....besides they can..

We paid off our bond last year and we did not see any bond 'maintenance fee' on our new tax bill.

Watch this video for an explanation of the maintenance assessment.

The Villages 6-19-19 Construction Update and Maintenance Assessment discussion. - YouTube

Bottom line is that the Bond paid for the infrastructure to be built and the maintenance assessment pays to maintain some of the infrastructure and keep the community looking nice.

Look at the bottom of the tax bill, you will see your annual maintenance assessment listed. Most are between $300 and $600 annually depending on your unit and CDD.

Yeah, I see we have a 'maintenance fee' of $526, but I don't think that has anything to do with the bond.

Barefoot, you make a great point. That is why I decided not to pay off my bond.

Ohiobuckeye
 

There's another comment here that says you're not paying interest & they're laid out the payments. I don't know what's going on because we don't live in TV anymore. I made yearly payments because I looked at it this way. You pay Bonds fees yearly & if you pay it off right away it's like paying $20,000 more for your house, but in may case we only live there 7 yrs. & save about $13,000. I guess it's only how you think about it!:ho:

It's the top of the range significantly higher than $600 ???


Thanks.

I just looked at CDD-10 and only 3 or 4 communities were above $600 and these were premier communities, as expected based on how it is determined.

Looking at CDD12 the rates are higher with many in the $600 range and few in the $700. This is to be expected in the new areas as there is a higher ratio of open/green spaces and ponds to be maintained than in areas north of SR44, so higher costs and higher assessments.

In both cases the value for what is paid is pretty good. The pill that's hard to swallow is the Willdwood property taxes that the area south of SR44 is paying, about double their maintenance assessments and they get very little for their money. But this is a topic for a different thread.

I heard ~$1600 on premiers.

You are right in your thinking.....it’s a maintenance fee on the infrastructure.

We almost didn't buy the day we did, not because of the bond but because they couldn't (or wouldn't) confirm the interest rate. When I got up to walk out, they suddenly made a few calls and came up with 6 point something %. (2011). We decided to pay it off ASAP as we have no mortgage or any other debt we carry. My only complaint was having to wait 7 months before we were "allowed" to pay it off.

Let’s assume I pay off my bond...sell my home for 315,000 because my bond was 15,000. You do not pay your bond and live in your home for 3 years. You ask 300,000 for an equivalent home. I still pay approximately the same 315,000 for both homes because I am assuming your bond loan and the principal on the bond is not much in the first years. It’s really pay me now or pay me latter. Basically I am paying the same price for the home minus a small principal reduction on the bond.

Pay me later with a large interest payout in between.

Living debt free is a real plus, stock market bombing downward does not affect your investment in your home. Most people here are getting a little long in the tooth to wait for a recovery which indicaters say may be nasty this next recession. All depends on your bankroll and tolerance for financial loss.

Is there any evidence having a bond affects sell price in today's market?

Perhaps I should have stated pay me more later. :). To me it really depends on whether you have the available funds to pay it off. That was our choice but it’s not always possible for everyone.

I really don’t know but I would consider the paid bond a plus.

I would consider a paid bond a plus also!
If it came down to two houses, I'd pick the one with the bond paid.

It's important to me to live debt free, but it may not be important to most people.
Because we bought a resale on a golf course, our bond was relatively small.

Well yes, of course! So what is our alternative? Move out? It is what it is. I prefer to enjoy my final years not worrying about this stuff. Been there, done that...and I've had quite enough! Smile folks! The sun will still come up again tomorrow!