[Chatbrat]

A person had mentioned that they get 6%, I have a big investment in Gabelli Utility Trust (GUT) it pays close 8% and the dividends are based on 12 month payments, but a really big benefit is it you reinvest dividends, you get a 5% market price discount--close to 13% (total)--have this stock over 25 years--double your investment close to every 7 years

By the way I just got some more stock today @ $7.16 vs $7.54 mkt price--its been working for me

[billethkid]

Originally Posted by Chatbrat

A person had mentioned that they get 6%, I have a big investment in Gabelli Utility Trust (GUT) it pays close 8% and the dividends are based on 12 month payments, but a really big benefit is it you reinvest dividends, you get a 5% market price discount--close to 13% (total)--have this stock over 25 years--double your investment close to every 7 years

That would be an excellent choice with significantly better return than paying off the mortgage with the same money....if one is so inclined to do so....

[dewilson58]

Originally Posted by Chatbrat

A person had mentioned that they get 6%, I have a big investment in Gabelli Utility Trust (GUT) it pays close 8% and the dividends are based on 12 month payments, but a really big benefit is it you reinvest dividends, you get a 5% market price discount--close to 13% (total)--have this stock over 25 years--double your investment close to every 7 years

Right, Wrong or Indifferent............I've looked at some Utility Stocks as a bond investment because of their dividend history. Sometimes not a lot of price growth, just good payment history.


GUT has a good track record...........and yes, 6% is do'able.

[Barefoot]

Originally Posted by Chatbrat

A person had mentioned that they get 6%, I have a big investment in Gabelli Utility Trust (GUT) it pays close 8% and the dividends are based on 12 month payments, but a really big benefit is it you reinvest dividends, you get a 5% market price discount--close to 13% (total)--have this stock over 25 years--double your investment close to every 7 years

Thanks.

[Goldwingnut]

Originally Posted by blueash

The bond is not going to be refinanced as it was taken out by the Morse family's corporation(s)/CDD's to finance the building of the infrastructure. There is no incentive for refinancing as the bond holders are making money and there is no municipality that would benefit from the refinance as it is the homeowners paying it, not the CDD.

You are incorrect in this statement, the bods for districts 3 thru 8 were reissued in 2013-2104 to take advantage of lower interest rates. The homeowners still owing on the original bonds benefited by the lower rates by a lower annual payment on the reissued bonds.

Other than paying for the work provided by the Developer, the developer is basically out of the loop on the bonds that are issued and receives no benefit for either the interest or administrative fees that are charged.

[Villageswimmer]

Originally Posted by Carla B

Not only interest, but an administrative fee.

Most folks don’t look at their amortization schedule. It should also be noted that the interest rate your bond varies depending on when it was issued. Our first villa, built in 2012, carries an interest rate of 6.125%. That’s huge. This is amortized—not simple interest.

Anyone know who keeps the admin fee? Might be the bond underwriter, but I don’t know.

[Challenger]

Originally Posted by Goldwingnut

You are incorrect in this statement, the bods for districts 3 thru 8 were reissued in 2013-2104 to take advantage of lower interest rates. The homeowners still owing on the original bonds benefited by the lower rates by a lower annual payment on the reissued bonds.

Other than paying for the work provided by the Developer, the developer is basically out of the loop on the bonds that are issued and receives no benefit for either the interest or administrative fees that are charged.

More incorrect info by unknowledgeable posters. Rampant on this thread. Thanks Goldwingnut for "facts"

[Challenger]

Originally Posted by New Englander

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.

An existing bond is considered part of the total consideration for the property. Any appraisal indicating otherwise is erroneous.

[CWGUY]

Originally Posted by Villageswimmer

Most folks don’t look at their amortization schedule. It should also be noted that the interest rate your bond varies depending on when it was issued. Our first villa, built in 2012, carries an interest rate of 6.125%. That’s huge. This is amortized—not simple interest.

Anyone know who keeps the admin fee? Might be the bond underwriter, but I don’t know.

https://www.districtgov.org/departme...financeFAQ.pdf page 3 says:

 Why am I paying administration fees with the bond?
The administration fees are charged to cover the expenses related to record keeping and
administrative costs.

There is a phone number listed on the bottom of the page and the heading on the page says "VCDD Finance". You could call and ask.

[vintageogauge]

Originally Posted by Barefoot

I'm curious - where do you invest that earns 6% and better?

I was going to ask the same thing, most likely at some risk.

[twoplanekid]

Originally Posted by Challenger

An existing bond is considered part of the total consideration for the property. Any appraisal indicating otherwise is erroneous.

When I financed the purchase of our new house in TV in 2014, the appraisal value and the bank financing value did not include the existing bond on the house.

[manaboutown]

Originally Posted by twoplanekid

[/U]

When I financed the purchase of our new house in TV in 2014, the appraisal value and the bank financing value did not include the existing bond on the house.

What about your tax evaluation?

[twoplanekid]

Originally Posted by manaboutown

What about your tax evaluation?

The assessed value on the Sumter County Property Appraiser site did not include the bond value.

[Love2Swim]

We didn't know if we would sell the house so we wavered on whether or not to pay off the bond, but ultimately we did. Time flies - we've been in the house 13 years now, so I'm really happy we made the decision not to pay all that interest.

[Challenger]

Originally Posted by twoplanekid

[/U]

When I financed the purchase of our new house in TV in 2014, the appraisal value and the bank financing value did not include the existing bond on the house.

The bond does not add to the value. It is in fact a lien, superior even to a mortgage. The value is the value. My point is that If the appraised value is $100,000 and you contract at that price ,your total consideration with a $10,000 bond is $110,000. Any salesperson who does not clearly explain this is misleading the purchaser.

If house A is priced at $100,000 with a bond of $10,000 = total consideration(all in price)is $110,000. If no bond(bond has been paid), then any purchase price up to $109,999 is a better deal.