[aljetmet]

Originally Posted by eweissenbach

When looking at homes we simply add the price of the home and the amount of the bond to come up with the selling price. Most people don't pay off the bond as they cannot really add that to the selling price when, and if, they sell. The bond is problematic in that it does not add to the home value, it carries a higher interest rate than a mortgage, and if you pay it off you cannot generally recoup it when you sell, so it is actially worse than if it were a part of the sales price. I have heard people claim it is no problem, as they pay it as part of their taxes and don't really notice it. Well, I gotta tell you, I would notice an additional $2000 or so when I pay my tax bill. I have also had TV sales people try to convince me that it really should not be added to the price of the home when considering the gross price because it is paid with the taxes and not a big deal. That is an insult to my intelligence. I understand exactly why the bond is a part of the new home purchase, as it allows the developer to finance the infrastructure while keeping the price of the home reasonable, but to think it is anything other than an additonal cost of the purchase is irresponsible.

Very well said coach!

Originally Posted by kentucky blue

If you are planning on living in your home forever,pay off the bond.If at anytime you plan on selling ,DON'T,you will never recoup the cost of the bond payment,.....................................NEVER .

That's exactly how we feel.We don't ever plan on moving again so as soon as we can we will be paying off the bond!

[Challenger]

Determining the best course in various scenarios would make a good article for some financial reporter(or Doctoral Candidate). We see a lot of anecdotal references to the fact that there is no effect on the ultimate price of the unit. I find this to be illogical and I doubt that a scientific study would support these comments in all cases. The issue of interest rates on the bond have an effect. Most folks do not have consistent investment returns and at 6-7%, it might be better to pay the bond off ever with borrowed funds. The cumulative effect of interest costs, inability to use the mortgage interest deduction. and the present value of money would all be relavent to the final result and IMHO may provide different optimal answers based on the facts of each case.

[jsw14]

We bought a pre-owned home in TV last May. It had a low bond. We where told that No Bond can go higher then 7%. We paid our bond off in Oct. 2011. Happy campers in Springdale.......

[mak44070]

Here's a link to the Amortization Schedule of the bonds in Marion and Sumter counties:

Village Community Development Districts

The bond interest rate is hand-written on the schedule.

[obxgal]

Thanks for the link mak44070.

Our orginal bond was $13220.37.
With the interst of 5.357% plus the administration fees of $28954.40 added
that would be a grand total of $42174.77 over the 30 years.

According to those figures I'm happy we paid ours off.

[kentucky blue]

Originally Posted by obxgal

Thanks for the link mak44070.

Our orginal bond was $13220.37.
With the interst of 5.357% plus the administration fees of $28954.40 added
that would be a grand total of $42174.77 over the 30 years.

According to those figures I'm happy we paid ours off.

Since the average person lives in their home 5 to 7 years, the 30 year interest totals would not be a part of the equation.Anybody would payoff the bond if they felt they would be there that long.You made the right decision for yourself if your planning on keeping your home for the long term,if not ,that 5.357% interest rate and administration fees will feel like a real bargain.

[BostonCelt]

Originally Posted by mak44070

Here's a link to the Amortization Schedule of the bonds in Marion and Sumter counties:

Village Community Development Districts

The bond interest rate is hand-written on the schedule.

Nice job. Thanks.

For a new Charlotte, Unit 179...$18,600.73...30 yrs totalling $46,642.29...interest rate penciled in at 6.8475%...

Sorta like buying a used Honda with a 30 yr car loan at 6.8+%....without the Honda.

Sorta...

[buggyone]

When I bought my home in Glenbrook about 2 and a half years ago, I first looked at a newer one in Caroline. It was $100,000 more and had a $20,000 bond. The one I bought had everything we wanted (plus more) was $100K less and had a $2,000 bond. No brainer.

I have looked at Premiers that have a $50,000 bond on them. No thanks to adding $50K to the price of the home.

Buy a resale with very low or no bond. You will come out ahead every time.

[2BNTV]

Originally Posted by eweissenbach

When looking at homes we simply add the price of the home and the amount of the bond to come up with the selling price. Most people don't pay off the bond as they cannot really add that to the selling price when, and if, they sell. The bond is problematic in that it does not add to the home value, it carries a higher interest rate than a mortgage, and if you pay it off you cannot generally recoup it when you sell, so it is actially worse than if it were a part of the sales price. I have heard people claim it is no problem, as they pay it as part of their taxes and don't really notice it. Well, I gotta tell you, I would notice an additional $2000 or so when I pay my tax bill. I have also had TV sales people try to convince me that it really should not be added to the price of the home when considering the gross price because it is paid with the taxes and not a big deal. That is an insult to my intelligence. I understand exactly why the bond is a part of the new home purchase, as it allows the developer to finance the infrastructure while keeping the price of the home reasonable, but to think it is anything other than an additonal cost of the purchase is irresponsible.

No matter how it is painted, a bond is still money coming from the buyers pocket.

It's like the old commercial for the Framm oil filter:

You can pay me now or pay me later.

[ljones190]

Originally Posted by 2BNTV

No matter how it is painted, a bond is still money coming from the buyers pocket.

It's like the old commercial for the Framm oil filter:

You can pay me now or pay me later.

Good line, except living in NJ my taxes are $6,000 yearly(no bonds), In TV my taxes and bond are $4,000 dollars yearly, when I pay off my bond and declare Florida as my primary residence my taxes and bond maintenance fee will be less then $2,500 per year. I'll take TV anytime over NJ! I look at the bond as a glass half full not a glass half empty, at least you have some options in TV.

[2BNTV]

Originally Posted by ljones190

Good line, except living in NJ my taxes are $6,000 yearly(no bonds), In TV my taxes and bond are $4,000 dollars yearly, when I pay off my bond and declare Florida as my primary residence my taxes and bond maintenance fee will be less then $2,500 per year. I'll take TV anytime over NJ! I look at the bond as a glass half full not a glass half empty, at least you have some options in TV.

I agree that taxes are much less in TV than in the northeast as I am in CT. I will paying a lot less in taxes when I move to TV. I plan on buying a pre-owned with little or no bond. The amount of what one pays is not what I was trying to state.

My point is that if one has a bond, it has to be paid whether one pays it all at once or over a 30 year period. Whether one wants to include the bond in the sale of their home and or taxes.

It's up to each individual to decide what is best for themselves.

[daca55]

My thought on paying the bond off is to only do it if you plan on being in the home for greater than 10 years. If you can't say that is where you will be in 10 years then I wouldn't use savings to pay it off. I just bought a brand new villa and I have a $10,000 bond which is misleading if you figure the interest they charge. When I was looking at resale homes I will admit I looked to see if the bond was paid or that it had been paid down substancially. I think when you look at a new home your mind set is that it goes with buying a new home. I just wish the interest was deductible on my 1040.