[shcisamax]

We were going to pay off the bond but there seems to be a difference of opinion. We just thought why finance the bond at 6%. A few people have mentioned that when selling, new owners do not care. They care about the price of the house but for some reason do not think about the taxes/bond. Thoughts?

[momesu]

Well being selfish and looking to buy sometime next year.....I say pay the bond. I will be looking for resale home with low or no bond. Others may not car but to me a large bond just raises the price of the house in an invisible but financially draining way, Like I say though that is a selfish thought on my part.

Suzanne

[natickdan]

The bond issue is one that many of us have thought about and after learning about the number of times a Villager may move, either within the Villages or somewhere else, we decided not to pay off our bond.

If we thought, with some certainty, that we would stay in our current home, we would pay off our bond. Our challenge is that we just don't know if at some point in the future, we'll want to find another home in TV. Although selling a home with no bond is an asset, many pre-owned homes on the market have a bond.

The decision you may make may or may not be the correct one for someone else. Look at all of your options.... Best of luck!

[BostonCelt]

Originally Posted by momesu

Well being selfish and looking to buy sometime next year.....I say pay the bond. I will be looking for resale home with low or no bond. Others may not car but to me a large bond just raises the price of the house in an invisible but financially draining way, Like I say though that is a selfish thought on my part.

Suzanne

Still, crunch all the numbers. Don't be surprised to find "no/low bond" homes priced higher than "bond" comps, to the point the lower priced home plus the bond is a better deal than the higher priced "no bond" home....

[Jim 9922]

No ifs or buts, the outstanding balance of the bond should be considered in the price of the home. Anyone who ignores this fact deserves to overpay for the home. Some sellers with bond balances will try to refute it as an additional cost. If you get one of these owners and your offer based on consideration of a bond balance is refused, go on to the next one. There are plenty of homes on the market.
Many Villages Properties sales people downplay the bond issue when selling new (especially a few years ago) but seem to "fess up" when selling used. Almost all independent agents tell it like it is.

[Barefoot]

Originally Posted by shcisamax

We were going to pay off the bond but there seems to be a difference of opinion. We just thought why finance the bond at 6%. A few people have mentioned that when selling, new owners do not care. They care about the price of the house but for some reason do not think about the taxes/bond. Thoughts?

It's really weird. For some reason, a lot of people don't seem to consider the bond as an addition to the purchase price of a home. We paid off the bond on our last home in TV, a CYV. When we sold it was an insignificant plus. We now have a bond and I would not pay it off, unless we were 100% positive we would never move again.

[Ohiogirl]

but not until we owned for about 4 years. Also, the interest rate on our bond (built 2006) was over 7%, if I'm recalling correctly. I think the annual cost for our originally approx $9600 bond (for villas in District 6), was about $700 on our annual tax bill.

The district (6) may since have refinanced it, not sure how that works.

We read all the posts and considered it carefully, but after owning it for 4 years, using it for vacations, and moving down for good, we are sure we are not moving in the foreseeable future. We love our location and our villa, and unless we inherit megabucks from a long lost relative, we are not anticipating any huge financial windfalls that would change our minds.

For us, it's all about lowering our fixed monthly/yearly expenses so we can do pretty much what we want in retirement and not worry about money. We also paid off our mortgage. It is very freeing for someone like me who frets about these things. I sleep better (sometimes .

Also, for some reason, I didn't have a problem with taking money out of savings to pay off the bond, whereas I do have a problem with taking $ out for living expenses in retirement, even though that's what I saved it for. But that could just be me, and it's something I am working on to get over - you can't take it with you!

[brostholder]

Originally Posted by natickdan

The bond issue is one that many of us have thought about and after learning about the number of times a Villager may move, either within the Villages or somewhere else, we decided not to pay off our bond.

If we thought, with some certainty, that we would stay in our current home, we would pay off our bond. Our challenge is that we just don't know if at some point in the future, we'll want to find another home in TV. Although selling a home with no bond is an asset, many pre-owned homes on the market have a bond.

The decision you may make may or may not be the correct one for someone else. Look at all of your options.... Best of luck!

My wife and I made the same decision. We decided that we would live in our CYV for a few years. If we decide that we like it after that time, then we will stay and pay the bond off. If we decide we need a bigger place, then we will move and start the evaluation process all over again. Our neighborhood is only two years old, but already some of my neighbors are "upsizing".

[JoeC1947]

My bond was only 11K so it was a no brainer for me. I don't plan on moving anytime soon so I paid it off right away. Think about it and make you're own decision. What's right for me may not be right for you. I come from the old school that says to retire without debt. A bond is debt that you can't write off.

[Happinow]

I agree with Ohio girl. We will pay off out mortgage and bond for the piece of mind. The less outstanding the better, at least for us. If anything were to happen to us the house goes to my daughter and she could have the house free and clear. Also, you can't take it with you so I say spend it! Leave yourself a nice cushion but live your life.

[shcisamax]

We're done. Paying the bond.

[Carla B]

When we were deliberating whether to pay off the bond we discovered that the VCDD was charging a fee of $85 per year on top of the interest just to administer the bond. So that sealed the deal.

[Bill-n-Brillo]

The "pay the bond off" or not decision is mostly a personal one, kinda like whether or not to have a mortgage (if that is a viable scenario for the homeowner). A financial case can be made to paying the bond off but as has been stated by some, the tendency is for many people to just overlook the amount of the bond associated with buying a home in TV. So that adds to the complexity of what to do.

Bottom line to us has been to do whatever makes us sleep better at night!

Bill

[aljetmet]

The OP mentioned paying off with 6% money. That's kind of high.
New mortgages are under 4 and I'm sure a heloc is less also.
I'm going to pay off the bond when we buy.

Also regarding when selling, it's how you market your home. If you have no bond, your agent has to play it up in a big way. Well that's what I'm going to add to my will for my kids to read...

[edwardt6]

The Bond is just something you get to buy the builder didn't pay for most builders pay for the streets up front