[KRM0614]

Originally Posted by KEVIN & JOSIE

I was reviewing new home bonds at 30K plus range and at interest rates between 3 and 5 percent. It feels like with your new home purchase you accept this bad debt. Can you explain another way of looking at it? Thanks

Bond is a debt on your home/land plus land that never goes away. TV issues tax free bonds to finance future construction - homes commercial etc - we pay for it for 30 years or if you want to pay it off .
Components are bond mainyence which is roads sewer etc the house portion and fire assessment.

After it’s paid off you continue to pay interest on those bonds in perpetuity as a non ad Valorem item called HOA/maintenance

So its never really paid off as fees continue.
This was discussed with TV taxing people fL Dept of revenue
Wildwood.

[Goldwingnut]

Originally Posted by KRM0614

Bond is a debt on your home/land plus land that never goes away. TV issues tax free bonds to finance future construction - homes commercial etc - we pay for it for 30 years or if you want to pay it off .
Components are bond mainyence which is roads sewer etc the house portion and fire assessment.

After it’s paid off you continue to pay interest on those bonds in perpetuity as a non ad Valorem item called HOA/maintenance

So its never really paid off as fees continue.
This was discussed with TV taxing people fL Dept of revenue
Wildwood.

This is perhaps one of the most convoluted and incorrect statements I have ever read on the Bond and Maintenance Assessments (two separate fees and different fees). You have no clue what you are talking about.

The Bond is a fixed duration issuance, once paid either on schedule or in advance it goes away. You pay no more. There is no continuing payment of the Bond interest.

The bonds are not issued by the developer, they are issued by the CDD for infrastructure construction, not homes or commercial properties. It is not for future construction; they are for construction within the CDD who issued it.

There is no Bond Maintenance, there is as Bond and a Maintenance Assessment.

The Maintenance Assessment pays for maintaining the public areas and storm water retention system, the only roads it covers is in the villa communities because of the road design. The remaining roads and sewer systems are maintained by the county, not the CDDs.

Fire Assessment is a separate fee of $124 on your property tax bill.

No part on any Maintenance Assessment goes to towards any home or residence maintenance.

There is no "TV taxing people" as there are no taxes assessed by The Villages District government. If you had spoken to anyone at the District offices, they would tell you the same thing I am now.

There is no HOA here in The Villages. The VHA and the POA are voluntary community organizations that have zero power or authority, or say in how The Villages government is run and maintained, regardless of what they say.

You should learn a little about a subject before you speak misinformation. Start by attending the Resident Academy VCDD Resident Academy to get a basic knowledge. It's a much more reliable and accurate source that the pool or samba table.

[retiredguy123]

Originally Posted by KRM0614

Bond is a debt on your home/land plus land that never goes away. TV issues tax free bonds to finance future construction - homes commercial etc - we pay for it for 30 years or if you want to pay it off .
Components are bond mainyence which is roads sewer etc the house portion and fire assessment.

After it’s paid off you continue to pay interest on those bonds in perpetuity as a non ad Valorem item called HOA/maintenance

So its never really paid off as fees continue.
This was discussed with TV taxing people fL Dept of revenue
Wildwood.

The maintenance fee on your tax bill is not interest on the bond. The bond is a loan used to construct the initial infrastructure needed to build the houses. When you pay off the bond, no additional interest will accrue. The maintenance fee is the cost for maintaining the infrastructure after it has been built. The maintenance fee and the bond are two different things.

[NavyVet]

I hate debt and I really hate paying any kind of interest/finance charges. I have no mortgage and pay off the credit card every month in full. It's peace of mind for me. First new home in TV in 2003, paid off the bond, thought that would be our last move. "Bond Paid" was supposedly a good selling point. We eventually upgraded to a designer home (new) with a much larger bond. Paid that off too. We are now in our third home (who would have thought? Long story) This was a resale with a huge bond balance. In neither case did Bond Paid help with the selling price of the 2 previous homes. So we have paid 2 entire bonds and are now stuck with a THIRD bond. Not falling for it again. I feel I have paid more than my share to the infrastructure.
What really sticks in my craw is it is all added to the Non Ad Valorem side of the annual tax bill. I have the 100% disabled veteran exemption on the Ad Valorem side and pay $0. Yet my tax bill here is way higher than my entire tax bill (both Ad valorem and Non) was in South Florida. That just sucks. I like my house (inflated prices and all) but living in TV is expensive for what you get. IF the time comes where I'm alone, I will be downsizing to somewhere else. I am no longer enamored with TV like I was the first 10 years here, just realistic.

[Topspinmo]

Originally Posted by KRM0614

Bond is a debt on your home/land plus land that never goes away. TV issues tax free bonds to finance future construction - homes commercial etc - we pay for it for 30 years or if you want to pay it off .
Components are bond mainyence which is roads sewer etc the house portion and fire assessment.

After it’s paid off you continue to pay interest on those bonds in perpetuity as a non ad Valorem item called HOA/maintenance

So its never really paid off as fees continue.
This was discussed with TV taxing people fL Dept of revenue
Wildwood.

That is above the initial bond. If you have bond you paid the bond and the maintenance fees.

[DAVES]

Originally Posted by KEVIN & JOSIE

I was reviewing new home bonds at 30K plus range and at interest rates between 3 and 5 percent. It feels like with your new home purchase you accept this bad debt. Can you explain another way of looking at it? Thanks

An endless debate. You should ask your accountant. For example is the interest deductible to you. Do you have the money to pay it off? What are you getting on the money you would use to pay off the bond. Re: 3-5%. The interest rate is not negotiable. Ours was 5%, we take a standard deduction so it is not deductible interest. We/I decided to pay it off, this year. We were told somewhere in the deal we signed the interest would be renegotiated in two years.

[retiredguy123]

Originally Posted by DAVES

An endless debate. You should ask your accountant. For example is the interest deductible to you. Do you have the money to pay it off? What are you getting on the money you would use to pay off the bond. Re: 3-5%. The interest rate is not negotiable. Ours was 5%, we take a standard deduction so it is not deductible interest. We/I decided to pay it off, this year. We were told somewhere in the deal we signed the interest would be renegotiated in two years.

The only way the bond interest is deductible is if it is rental property. If it is your primary residence, the bond interest is not tax deductible because the amount of the bond is not based in the value of the property. The bond interest is also referred to as a "non-ad valorem" expense. Ad valorem expenses are tax deductible, but non-ad valorem expenses are not. Your tax bill identifies these expenses as such.