Closing Costs - New vs. Resale

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  #16  
Old 10-29-2007, 09:55 PM
sandi sandi is offline
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Default Re: Closing Costs - New vs. Resale

nanci2539

Lets sat the bond is 28000. You spread it out for 30 years at say 7%(not sure what the actual interest is today) That would add 2235 annually to your taxes. As far as your property tax that would of course depend on the value of your house.
  #17  
Old 10-29-2007, 10:23 PM
tbsoccer tbsoccer is offline
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Default Re: Closing Costs - New vs. Resale

I found our about TOTV through the following RE/MAX website:

http://www.lylesellsfla.com/custom2.shtml

One of the other pages was The Villages FAQ's and one of the topic was a comparison of total home costs for financed and cash purchases on both new construction and pre-owned homes for a $200K home and a $250K home. Since we are still in the looking stage (buying is about 18 months away), I cannot speak to the accuracy of Lyle Grants data. On the $200K home, closing costs for a financed new home is $13,651 and pre-owned is $5,515 (excluding the bond). Buying a home for cash, the same closing costs on the same house are $9.661 and 1,275, respectively.

Hopefully, Villagers that have bought new and used either for cash or with a mortgage can validate these numbers.
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  #18  
Old 10-30-2007, 12:38 AM
duffertom duffertom is offline
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Default Re: Closing Costs - New vs. Resale

I spoke with the sales agent at TV that we are working with. He said that they use to have the impact fees Etc. as extra ( I guess part of closing costs) on new construction but now they do not. The price quoted includes them. When we come down in April I will pin him down.
  #19  
Old 10-30-2007, 12:52 AM
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Default Re: Closing Costs - New vs. Resale

Quote:
Originally Posted by duffertom
I spoke with the sales agent at TV that we are working with. He said that they use to have the impact fees Etc. as extra ( I guess part of closing costs) on new construction but now they do not. The price quoted includes them. When we come down in April I will pin him down.
This is true, and, this is when, amazingly, the bonds went from 20,000-28,000. Is the picture still the same??
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  #20  
Old 01-21-2008, 10:46 PM
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Default Re: Closing Costs - New vs. Resale

Hi,

This is my first post. I originally posted it on the site for first time posters but it was suggested that I try another thread. I thought this forum might be appropriate.

I have been spending some time the last 2 days reading the various postings and find the information very interesting and helpful. Thank you.

I have just started looking into TV as a retirement option. I visited a friend there about a year ago and really enjoyed my stay.

I would like some help understanding the bond. Some recommend not paying it off up front, but to pay it off over 30 years at 7%.

Does the bank consider the bond part of the cost of the house, so that you could add it to the listed sale price and put 20% down and still get a conventional mortgage for the difference?

I would think that if you rolled the bond into a mortgage, then the interest would be tax deductable, and the present mortgage rates are less than 7%.

Is the interest tax deductable if you do not make it part of your mortgage?

Thanks in advance for your comments!
  #21  
Old 01-21-2008, 11:24 PM
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Default Re: Closing Costs - New vs. Resale

RichC...

The bond is essentially an infrastructure/impact fee...the cost to build the roads, golf cart trails, common lights, common landscaping etc. As such, I think (and I do not definitely know) that a bank would not consider it as part of the cost of the house and thus part of a mortgage based on value of the house.

The bond is collected as part of your property tax bill every year. You are given an opportunity each year (approx in July) to pay it off.

Although it is not a tax, it is substantially interest payments in the early years for the original debt to build the infrastructure. An earlier poster said you can get an accurate figure on how much is interest (from the property appraiser/tax collector's office?) and thus is deductible on your income taxes.

I also assume the interest rate on the bond for new homes is adjusted as market rate conditions change. I believe my bond, enacted in mid 2006 is closer to 6%.

This, of course, all assumes you are looking at a new house. On a resale, the bond might already be paid, may be substantially lower, etc.

Good luck in your searching and keep the questions coming. If any others with more intimate knowledge of the bond process sees any inaccuracies or flaws in my statements, please pipe in to clarify.

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  #22  
Old 01-22-2008, 12:01 AM
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Default Re: Closing Costs - New vs. Resale

Quote:
WE JUST CLOSED ON A NEW COURTYARD VILLA AND OUR TOTAL CLOSING COSTS WERE ONLY $4200.
I spoke with the sales agent at TV that we are working with. He said that they use to have the impact fees Etc. as extra ( I guess part of closing costs) on new construction but now they do not. The price quoted includes them. When we come down in April I will pin him down.
These two posts confirm what my sales agent very recently told me. It sounds like the high "non-mortgage" closing costs are based on old information.
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  #23  
Old 01-22-2008, 12:56 AM
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Default Re: Closing Costs - New vs. Resale

Villages07

Thanks for the information.

However, I don't understand your statement that:

"Although it is not a tax, it is substantially interest payments in the early years for the original debt to build the infrastructure. An earlier poster said you can get an accurate figure on how much is interest (from the property appraiser/tax collector's office?) and thus is deductible on your income taxes."

Are you able, in fact, to deduct the interest? I thought that the only deductable interest is mortgage or home equity interest.

Thanks again.


  #24  
Old 01-22-2008, 01:55 AM
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Default Re: Closing Costs - New vs. Resale

closing costs are minimal for all practical purposes, the bond is a factor to consider
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  #25  
Old 01-22-2008, 02:12 AM
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Default Re: Closing Costs - New vs. Resale

RichC....

Here's the link to the prior thread; 784caroline had done some research on deductibility of the interest portion of the bond:

http://talkofthevillages.com/smf/ind...ic,3549.0.html

I haven't prepared my taxes yet to the point of pursuing this information.
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  #26  
Old 01-22-2008, 04:25 PM
villages8house villages8house is offline
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Default Re: Closing Costs - New vs. Resale

To respond to questions regarding the Bond that is attached to a home in The Villages. Mine is a patio villa.

The original bond amount when my house was new in 2004 was $5,233.01. The current balance after my 2007 property tax bill was paid is $4,888.93.

If I continue to not pay it off in full, this bond is to be paid in annual payments over 30 years at a fixed interest rate of 6.5%. Unlike the county's property taxes, these are pre-payments starting on Oct. 1st each year and paying through Sept. 30th of the next year. I understand there is no penalty to payoff the Bond if you choose to do so.

I am billed for this bond as a line item on my annual Sumter County property tax bill.

The Ad Valorem Property Taxes (billed Jan-Dec 2007 in arrears) for Sumter County are listed separately on the bill that I received in Nov. 2007.

My total Ad Valorem Taxes for Sumter County = $1,044.73 (for 1/1/07-12/31/07)

Then the Non-Ad Valorem Assessments for THE VILLAGES (for 10/1/07 - 9/30/08) are listed as follows:
Villa Special Assessment-Maintenance $285.59
Villa Special Assessment-BOND $424.82
Villages Fire District $61.00

Total Combined Taxes and Assessments = $1,816.14 due before 4-1-08.
I took the discount for paying early.

The breakdown on the BOND payment of $424.82 is as follows:
$ 77.95 Principal applied to the Bond Balance
$320.25 Interest @ 6.5% over 30 yrs.
$ 26.62 Admin. Fee for the Bank that holds the Bond
Total $424.82

As you can see, like any loan, the principal is very small and the interest is very large and they do charge an Admin. fee every year. Judge for yourself if it would be beneficial for you to pay off the BOND or continue paying each year.

You have to pay the Annual Villages Special Assessment Maintenance regardless of whether or not the Bond is paid.

You have to pay the Villages Fire District annually regardless of whether or not the Bond is paid.

The MONTHLY AMENITY FEE you have to pay to your CDD District (mine is $132.34/mo) has nothing to do with the above items billed on your tax bill. The monthly amenity fee usually increases annually on the anniversary month of when your home was purchased NEW (mine was Oct. 2004) The increase in the monthly amenity is tied to the Consumer Price Index. My monthly amount has increased yearly as follows: $125.00, then $129.75, then $132.34 to give you an idea of the increases.

I know this is detailed but hopefully it helps people to understand the Bond and other costs associated with owning a Village home.

Anyone - feel free to correct me if any of my information is incorrect.

Villages8house
  #27  
Old 01-22-2008, 04:54 PM
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Default Re: Closing Costs - New vs. Resale

Villages8
May I ask what is your valuation the tax is based on? How do this years numbers compare to last year? I also wondered if the bond could be added to a mortgage app to provide the interest deduction. Do you get the homestead deduction?
Don't know if I'm not seeing all of the costs but the taxes seem very reasonable. Here in PA I'm paying about $4700 a year on an assessed value of $149k which supposedly is about 80 percent of market, although the valuation was done 10 years ago.

  #28  
Old 01-22-2008, 05:38 PM
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Default Re: Closing Costs - New vs. Resale

Villages07 and Villages08house

Thank you very much for your help!
  #29  
Old 01-22-2008, 05:59 PM
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Default Re: Closing Costs - New vs. Resale

Villages8house,
we're looking at patio villas and the sales rep basically verified your info as what we should expect. Thanks
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  #30  
Old 01-22-2008, 09:05 PM
villages8house villages8house is offline
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Default Re: Closing Costs - New vs. Resale

Reply to Dutchman -

The assessed value of my patio villa for 2007 was $101,908 less the $25,000 Homestead Exemption making my Taxable Value = $76,908 which resulted in my Ad Valorem Taxes for Sumter County = $1,044.73. See below for millage rate breakdown.

When you add in The Villages Special Assessment Maintenance, Bond, and Fire District, my total tax bill was $1,816.14 as I explained in the former posting.

I'm the second owner, so my tax bill went up from $1,512 for 2006 as the home's assessed value was increased to reflect my purchase of the home in 2006. Each time a home is sold, the assessed value changes to reflect the new purchase price, etc. You don't get the Save Our Homes Discount until your second tax bill year.

My 2007 Ad Valorem tax rates were as follows in Sumter County:
C100 Sumter Co.
BCC General 5.2037 x Assessed Value $76,908 = 400.20
BCC Health .1027 = 7.90
CTT .1325 = 10.19
SSCH Sumter School 7.5280 = 578.96
WSWF SWFWMD .3866 = 29.73
WWRB WRBASIN .2308 = 17.75
TOTAL AD VALOREM COUNTY TAXES = 1,044.73

I thought maybe you'd get a better idea of the taxes if you had the actual millage rates.

Again, hope this helps you calculate your home's taxes.

Villages8house

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