[Stu from NYC]

Originally Posted by Bay Kid

It was to me when I was buying.

OK but several real estate sales folks have told us not worth paying off bond unless we are sure to stay in our current house for forseeable future so our bond is still there for now.

[Bay Kid]

Originally Posted by Stu from NYC

OK but several real estate sales folks have told us not worth paying off bond unless we are sure to stay in our current house for forseeable future so our bond is still there for now.

Different strokes for different folks. I look at it as bad debt, like paying interest on a credit card.

[Stu from NYC]

Originally Posted by Bay Kid

Different strokes for different folks. I look at it as bad debt, like paying interest on a credit card.

We all spend our money as we see fit.

Thinking it is best to decide if we stay in current house for some time before paying off bond and possibly not getting the money back from our buyer.

[retiredguy123]

Originally Posted by Bay Kid

Different strokes for different folks. I look at it as bad debt, like paying interest on a credit card.

The bond is not the same as credit card debt or even mortgage debt. Those debts are debts against an individual that can affect their credit rating and can have other financial consequences, like higher insurance rates. But, the bond is a debt against the property, and does not count as individual debt. The individual homeowner never needs to pay off the bond. But, you do need to pay interest.

[Bay Kid]

Originally Posted by retiredguy123

The bond is not the same as credit card debt or even mortgage debt. Those debts are debts against an individual that can affect their credit rating and can have other financial consequences, like higher insurance rates. But, the bond is a debt against the property, and does not count as individual debt. The individual homeowner never needs to pay off the bond. But, you do need to pay interest.

I understand. To me it is like credit card debt because you can't write-off the interest.

[Altavia]

Here's a thread on Bond discussion.

Bond questions

[Bogie Shooter]

Originally Posted by Altavia

Here's a thread on Bond discussion.

Bond questions

Doubt that will help, there are only 107 posts on that thread.🤦

[Altavia]

Originally Posted by Bogie Shooter

Doubt that will help, there are only 107 posts on that thread.🤦

Just another Groundhog Day thread... 🤣

[Laker14]

Originally Posted by Stu from NYC

OK but several real estate sales folks have told us not worth paying off bond unless we are sure to stay in our current house for forseeable future so our bond is still there for now.

The question of whether to pay it off or not is a different question than whether or not the existence of a bond balance has an effect on the purchase price, or attractiveness of the property compared to other properties.

[Stu from NYC]

Originally Posted by Laker14

The question of whether to pay it off or not is a different question than whether or not the existence of a bond balance has an effect on the purchase price, or attractiveness of the property compared to other properties.

We were told by several real estate professionals that most people will not consider the cost of the bond in deciding on whether to buy a property.

[Papa_lecki]

Originally Posted by Stu from NYC

We were told by several real estate professionals that most people will not consider the cost of the bond in deciding on whether to buy a property.

So buyers don’t consider the fact that buying an asset, has an additional $0/15,000/$35,000 liability?

[ronda]

Originally Posted by Altavia

It's been reported up to 80% of home sales here are cash.

That's true, but there is the chain reaction effect. Newcomers have to sell their homes up north to buy in TV. People buying those homes up north will likely have mortgages, and the selling price of those homes may be less due to higher mortgage rates. In turn, the newcomers will have less proceeds to spend on their new home in TV. So they may be more sensitive to what they pay in TV. Trading one home for another of similar price is easier to swallow.

[ronda]

Originally Posted by Packer Fan

Preowned have-
upgrades done - these can be expensive
Some of the bond paid
bigger yards
Closer to shopping and golf courses
NO TOLLWAY NOISE
Closer to more town squares
Sometimes some furnishings or a golf cart.

I have bought one of each, it all equals out

Could also be pools. If somone adds a pool to the home it adds a lot to the asking price. I don't know if the developer sells a lot of brand new homes with pools, or the new owners put the pool in after the sale?

[ronda]

Originally Posted by Papa_lecki

So buyers don’t consider the fact that buying an asset, has an additional $0/15,000/$35,000 liability?

That's a good question. I pondered the same question, before I decided to pay off my bond. I bought a pre-owned home with a $9K bond with like a 4.5% interest rate. Thinking there was like 10 years left on the bond. I was figuring I will have the house for at least 10 years so it was a good bet. Even if I sold after 5 yrs , iI'd probably get my money back.

I think some do and some don't consider the Bond. Some people only look at "what can I afford". If they can afford the bond payment, they don't care. Others, like me add the cost of the bond to the purchase price (in their minds).

I would say having a bond is not a make or break for most buyers. It could be a tie breaker for some people considering comparable houses. In addition, they may not negotiate as hard on the hose without the bond.....but who knows.

[retiredguy123]

Originally Posted by Papa_lecki

So buyers don’t consider the fact that buying an asset, has an additional $0/15,000/$35,000 liability?

Actually, I don't think the appraiser and the mortgage company factor in the bond when determining the amount that can be borrowed. Also, if you are listing a house with a bond, the listing agent will definitely tell you to not pay it off. Note, that when you buy a house with a bond, you can pay it off or not. But, when you buy a house without a bond, you can't add a bond. So, buying a house with a bond gives you more options. If you are going to sell your house within a few years, there is no doubt that you will benefit by not paying off the bond.