[OrangeBlossomBaby]

My home didn't have a bond. Neither did anyone else on my side of The Villages. We're in the city of Lady Lake, in Lake County, and there were no bonds imposed on the manufactured homes rolled in when the "Historic Secton" was developed. All homes built in our area up to the present time, replacing those manufactured homes with "site-built" and block and stucco, also had no bond.

I think we voted to start imposing bonds going forward though, it was one of the things on our ballots in November.

[Rainger99]

Originally Posted by asianthree

New house in 2021 and only $1000 a year bond is impressive on a new house south of 466a. In 2010 we were just under $1,000 that was in Pennacamp near LSL.

House is relatively small. Not a designer.

[CoachKandSportsguy]

Originally Posted by jimhoward

I just bought a new house in shady brook. The bond was just over $40k. The interest rate is around 5.5%. I was surprised it wasn’t more.. It’s easy enough do the math and the payment comes out to $3300 or so (plus or minus a couple hundred bucks).

I didn't see any lack of transparency. They tell you the exact bond amount, the term and the interest rate. The payment just falls out.

I doubt I will pay off the bond early because the bond has little effect on the market price if you sell. It perhaps should but it doesn’t seem to. It affects the market size as some people won’t accept bonds and some people mentally add the bond to the price which steers them away from newer homes. But those people are few. A bond free home may sell fast, but it doesn’t seem to sell for more.

Financially keeping or paying the bond is about a wash as the return on money invested elsewhere is similar to the interest rate on the bond.

So I plan to just keep the bond and pay it every year.

So where is your source of data to prove your assumptions of sales effect?, otherwise they are just another opinion. And if you have data, how did you attribute the customers which didn't look at the houses?

[4$ALE]

Originally Posted by OrangeBlossomBaby

My home didn't have a bond. Neither did anyone else on my side of The Villages. We're in the city of Lady Lake, in Lake County, and there were no bonds imposed on the manufactured homes rolled in when the "Historic Secton" was developed. All homes built in our area up to the present time, replacing those manufactured homes with "site-built" and block and stucco, also had no bond.

I think we voted to start imposing bonds going forward though, it was one of the things on our ballots in November.

Could you please double check that and maybe provide a link for us to read?

[Goldwingnut]

Originally Posted by CoachKandSportsguy

So where is your source of data to prove your assumptions of sales effect?, otherwise they are just another opinion. And if you have data, how did you attribute the customers which didn't look at the houses?

I think we'll find that no matter which side of the argument you are on over the impact of the bond on home sales here in The Villages it is all conjecture and opinion.

The bond amounts continue to rise and will likely always continue to rise. CDD15 phase 2 bonds are higher than the phase 1 bonds and CDD16's bonds next year will be even higher. All three are higher than cdd14, and those before CDD15. Inflation.

The only accurate way to assess if the bonds are truly increasing is to not look at the cost for the individual home but the cost per developed acre (the underlying factor), adjust it for inflation since issuance, and then compare it to the inflation and marked adjusted home cost in that area. I did this 5 years ago when I did my video on the bonds ( https://youtu.be/nGwf7AcmyEI?si=7zOHETbxY8DDnUSl ). What I found was that the adjusted cost per acre and the bond/home price ratio of the bond value actually decreased over a 15 year period.

[huge-pigeons]

Everybody knows what the bond prices are in the different areas of TV. If you are only paying $1000 for a new house built in 2021, you are getting 1 heck of a deal. Ours is 3x that much for a 2021 designer house.
Every house we were interested in when we were initially looking, we knew exactly what the bond would be, it’s no secret.
The bond is just an extra expense which I wouldn’t let that get in the way of buying a house that you like. I have many friends that moved to newer areas with much higher bond fees because the price of the land was much cheaper, and I mean much cheaper. Pay $10k more for a bond bu saved over $100k for the land, pretty good deal.

[bowlingal]

bond payment of $1000/per year, for how many years? 30? then your bond is $30,000 at what 7%? Not so good

[asianthree]

Originally Posted by bowlingal

bond payment of $1000/per year, for how many years? 30? then your bond is $30,000 at what 7%? Not so good

So OP $1,000 a year bond with interest and admin fees in 2021 would be far less than $30,000, which OP has not stated original bond at build.

[jimhoward]

Originally Posted by CoachKandSportsguy

So where is your source of data to prove your assumptions of sales effect?, otherwise they are just another opinion. And if you have data, how did you attribute the customers which didn't look at the houses?

Yes, just an opinion. Can’t be in any way proven for the reasons you say.

[mkjelenbaas]

Originally Posted by Rainger99

Some threads say that the Villages is not that transparent about bond payments on new sales and that people are shocked when they get their first tax bill.

I have been told that bonds in the new areas are very expensive.

I bought new in 2021 and pay about $1,000 a year.

As to your question wanting to know my bond payment - that is proprietary information and don’t disclose the amount - but thanks for asking.

[Michael 61]

I’m in a 2022 new build - patio villa - $1093 a year / the designer home right next door to me pays more than double that. Original bond was about $21,000. In a few more years, if I decide not to move to the Eastport area, I’ll probably pay off the bond.

[Rainger99]

Originally Posted by asianthree

So OP $1,000 a year bond with interest and admin fees in 2021 would be far less than $30,000, which OP has not stated original bond at build.

The bond was about $18,000 or $19,000.

[Bogie Shooter]

Originally Posted by mkjelenbaas

As to your question wanting to know my bond payment - that is proprietary information and don’t disclose the amount - but thanks for asking.

Publicly available by unit and lot number.

[mtdjed]

The bond is part of the cost of your home. You can pay it off when you buy or pay it per the schedule.

It really is an asset just like the home. Someone has to pay for the infrastructure, water supply, streets, gas supply etc..

Some developments may have more amenities and therefore have a higher bond. If too high, buy elsewhere. To avoid bonds, buy in an established community where all such bonds are retired.

It is your choice.

Similar decisions have been around for years. In 1950, my parents bought a suburban home on a dirt, gravel road with no supplied water, gas or sewers. Everyone had wells, septic systems, propane tanks etc. As time passed, the community evolved and the road was paved, water and gas lines were added. But that did not happen for free. Owners were assessed a fee based upon frontage just to make access possible. Additional costs were incurred to connect.

However, that increased the value of the homes.

[Lisanp@aol.com]

I think The Villages is very transparent about the bond fees on new construction. It is printed on the plat plans for each subdivision of each village.
I think there are two issues when people are shocked and complain about their tax bills. The first is that for year-one that you own new construction, it is taxed as vacant land. When it becomes fully assessed for the value of the home, it is a huge jump and a shock. When you close, you know the taxes that day, but you don't really know what the taxes will be a year from that day.
The second issue is that people just don't read their contracts. When you add in the maintenance assessment, fire assessment, bond payment, etc it's more then many were expecting to pay on their tax bill, but it is all outlined in black and white on the contract if you read it including the full amortization table for the bond payment showing total interest to be paid.