Originally Posted by Maker (Post 2259093)

One year of interest percentage = interest / principal (x100)
Looking at the next few years' numbers shows nonsense. Interest percentage value is changing yearly.
Oddly, the admin fee changes slightly every year. So does the total payment amount. This must be some sort of new math.

1252.40 / 30318.37 = 4.13083%
1234.64/29780.71 = 4.14577%
1216.28/29225.45 = 4.16172%
1195.63/28650.99 = 4.17308%

and in 2031... 1010.5 / 23968.9 = 4.2158%
and in 2049... 113.34 / 3429.17 3.30517%

Originally Posted by RRGuyNJ (Post 2259109)

The more I read about this bond nonsense, the more I see it as a deal breaker. I'm not a fan of HOA environments any way, but then add this bond to the mix and I don't see how they sell any homes at all. What am I missing? Other HOA communities don't have this set up. Yeah Yeah I know it's not technically an HOA but everyone knows it pretty much is.

Originally Posted by Bill14564 (Post 2259114)

Other than a monthly amenity fee, the Villages is nothing like an HOA.

The bond is simply a way for the Developer to keep the list price of a home lower while still collecting the cost of infrastructure. You feel good about paying $450K for the home but you end up paying that $450K plus $50K for the bond plus another $4K for Admin fees. The home is "affordable," the infrastructure gets paid for, and the Developer makes a profit both on the home and on the Admin fees.

The same costs are there in other developments, they are just rolled into the price of the home (and likely affect the total profit).

At 3,000 to 4,000 new home sales per year, the bond has not been much of a hindrance to home sales.

Originally Posted by Bill14564 (Post 2259114)

While there is a monthly amenity fee, the Villages CDDs are significantly different from an HOA.

The bond is simply a way for the Developer to keep the list price of a home lower while still collecting the cost of infrastructure. You feel good about paying $450K for the home but you end up paying that $450K plus $50K for the bond plus another $4K for Admin fees. The home is "affordable," the infrastructure gets paid for, and the Developer makes a profit both on the home and on the Admin fees.

The same costs are there in other developments, they are just rolled into the price of the home (and likely affect the total profit).

In a state that allows Special Districts, Developers recoup their infrastructure costs through bonds.

At 3,000 to 4,000 new home sales per year, the bond has not been much of a hindrance to home sales.

Originally Posted by Brwne (Post 2259158)

In Colorado (and many other states), the developer advances the costs to the district, the district floats the bond and levy's a property tax on the house. Said property tax millage can be increased or decreased in the future.

Here in The Villages, the developer advances the infrastructure costs and floats bonds - individually on each property - for recouping those costs. The bond payment is fixed and doesn't change over the life of the Bond.

The Villages bond on the house can be paid off anytime. The Colorado property tax levy will stay in place until the district pays off the bond - sometime in the future and mostly out of the control of the homeowner.

Originally Posted by RRGuyNJ (Post 2259109)

The more I read about this bond nonsense, the more I see it as a deal breaker. I'm not a fan of HOA environments any way, but then add this bond to the mix and I don't see how they sell any homes at all. What am I missing? Other HOA communities don't have this set up. Yeah Yeah I know it's not technically an HOA but everyone knows it pretty much is.

Originally Posted by villagetinker (Post 2259226)

There are plenty of resales with "bond paid off", so you can look at those if you are looking to move here. Also, we found it advantageous to pay off the bond early, this is highly dependent on current interest rates, investments returns, taxes, etc. NOTE: the bond payments cannot be written off on your income taxes.

Originally Posted by Stu from NYC (Post 2259298)

Thought long and hard when we moved here about paying off the bond immediately. Consulted two prominent real estate agents and their opinion that if we sell within a few years we would not recover the cost of the bond to the people we would sell too.

As a result for now we are not paying off the rest of the bond. In a year or two will reconsider.

Originally Posted by RRGuyNJ (Post 2259109)

The more I read about this bond nonsense, the more I see it as a deal breaker. I'm not a fan of HOA environments any way, but then add this bond to the mix and I don't see how they sell any homes at all. What am I missing? Other HOA communities don't have this set up. Yeah Yeah I know it's not technically an HOA but everyone knows it pretty much is.

Originally Posted by Bill14564 (Post 2259114)

You feel good about paying $450K for the home but you end up paying that $450K plus $50K for the bond plus another $4K for Admin fees.

Originally Posted by CoachKandSportsguy (Post 2259301)

Correct, if you are considering moving within the first 5-10 years, its best to not pay off the bond.

However, there is a behavioral economics question about how houses are priced to resell with or without a bond, based on total cost of ownership and the naiveness of the buyers.

Originally Posted by Nevinator (Post 2259376)

Has the bond amount been increased to $50k? The last I heard it was $30k. I’m planning on purchasing a lot within the next 60 days and if this fee has increased that will factor into my decision as to whether to buy new or used. Thanks.

Originally Posted by Nevinator (Post 2259376)

Has the bond amount been increased to $50k? The last I heard it was $30k. I’m planning on purchasing a lot within the next 60 days and if this fee has increased that will factor into my decision as to whether to buy new or used. Thanks.

Originally Posted by BlueStarAirlines (Post 2259426)

The bond is specific for a specific set section of houses, so is not one set price for a length of time (ie: Its not $40k for the month of September, etc.). The cost of the bond is correlated to the cost of the land prep, so houses across from each other could have a different bond. For example, my house is on a preserve next to a wall where the house across from me is an interior lot. My bond is higher than his. The second variable to the bond price is the interest rate. This is generally the same for a village.

For example, compare the bonds for my CDD: Amortization Schedules - Sumter