[retiredguy123]

Originally Posted by toeser

The real estate agents may be correct for some buyers, but I can assure you when we moved to the Villages we added any remaining bond to the asking price to make true cost comparisons between homes. We ended up buying a zero bond house. Anyone who does not do that is not a very educated buyer.

So, when you sell your house, make sure that you tell the selling agents that they can only show the house to educated buyers.

[Bogie Shooter]

Originally Posted by Villages Kahuna

Paying it off over the 20 year term might be a good idea. The municipal bond has a very low interest rate, much lower than any individual can get. So the question is—can you get a higher rate of return investing the $1,100 per month than the muni bond interest rate? The answer is almost certainly yes.

According to 15 to 20 above posters it’s not monthly!

[Villages Kahuna]

The “money hungry Morses” don’t make any money by financing the infrastructure with bond proceeds. The other alternative used by most developers is to let the local government finance the infrastructure and let them pay for them by increasing property taxes. Almost for sure local governments would not create infrastructure as complete and attractive as done by the Developer.

You get what you pay for!

[Altavia]

Originally Posted by Bay Kid

Paid mine off the 1st year. I looked at it like credit card debt, bad.

I get people wanting to be debt free. But the bond is more like a deferred infrastructure tax than a debt.

The bond is not like credit card debt. Bond debt transfers to the new buyer when the home is sold. Credit card debt follows where ever you go.

No real estate agent will guarantee getting a higher asking price for a home with a bond. In this market, the difference is often less than a percent of sales price.

Even better to not pay off If inflation plus savings rates are greater than Bond interest.

Your essentially giving part of your or your heirs estate away to a future buyer paying it off.

[Altavia]

Originally Posted by Villages Kahuna

The “money hungry Morses” don’t make any money by financing the infrastructure with bond proceeds. The other alternative used by most developers is to let the local government finance the infrastructure and let them pay for them by increasing property taxes. Almost for sure local governments would not create infrastructure as complete and attractive as done by the Developer.

You get what you pay for!

Exactly! This is why I think of it as a deferred tax.

In return we each own a piece of the infrastructure around us from day one.

[Worldseries27]

Originally Posted by bsloan1960

new owner/first time- closing at the end of june.

(using approx. Numbers) $20,000 bond paid over 30 years @$1100 per month = $33,000... Ouch!

I assume this is why some people choose to pay the bond off in cash. I called the development district and there is no creative way to reduce the interest payments- it's either pay it off in full or pay it monthly.

With this in mind what is the best way to pay this bond?

Thanks,
bill

let the person you eventually do it as well as subsequent purchasers. Probably 3 to 5 in 30 years

[MrFlorida]

I just don't like paying interest, so I paid off the bond, your mileage may vary.

[Laker14]

Originally Posted by retiredguy123

So, when you sell your house, make sure that you tell the selling agents that they can only show the house to educated buyers.

Most buyers can do math.

[Laker14]

Originally Posted by dewilson58

PLUS Admin Fee....................the effective rate is not that good.

And...while the administration fee reduces as the balance reduces, it doesn't reduce very much. My bond balance is around 7K. Interest rate 4+%, administration fee around $50.
In the last few years of the amortization, the balance gets to 4K, 3K, 2K etc, and the administration fee only goes down a dollar or so. So the effective % compared to the balance gets pretty high.

[Stu from NYC]

Originally Posted by Laker14

Most buyers can do math.

They certainly could but often do not.

[retiredguy123]

Originally Posted by Laker14

Most buyers can do math.

Even if they do the math and they are willing to pay an extra $20k for the house because the bond is paid off, at today's current mortgage rate of 6 percent, that is an extra $1,200 per year in interest. For some buyers, that may disqualify them for a mortgage. But, as I understand it, mortgage lenders do not even consider a bond on the house when they appraise the house or determine the buyer's mortgage eligibility.

[vb993]

All developments that I have lived in, the developer pays for the infrastructure - roads, utilities, etc. and pays for them from the profits of selling the homes. When the developer has completed the development he turns over the ownership of the common facilities to the Property owners, who then own the common facilities and decide what to do with and pay for them. Not so in the Villages. The developer charges a Bond to pay for the infrastructure, and the developer it turns out owns the common facilities and charges the homeowners a monthly fee to use them. So the property owners pay for the facilities, but the developer owns them and he can do what he wants with them. Close down amenities, convert common areas to apartments, whatever. Can't wait to see what else the greedy kids of the developer have in mind. Convert all of the golf courses into apartments? I know the response - if you don't like it here then move. So I have.

[dewilson58]

Originally Posted by vb993

I know the response - if you don't like it here then move. So I have.

But yet you still post in ToTV.



Let me repeat.

[dewilson58]

Originally Posted by Villages Kahuna

the $1,100 per month than ....

Clueless statement.

[dewilson58]

Originally Posted by Villages Kahuna

The ..... Morses” don’t make any money by financing the infrastructure

Clueless statement.