[JRichm369]

The bond is a second mortgage that stays with the property until it is satisfied, thus it is part of the value of the property. If it has been paid off you or your estate will be able to sell at a higher price.

[kstew43]

Originally Posted by justjim

What you say is absolutely correct, however, you are also "leasing" your property from the Government. You pay your lease in the form of taxes each year. So in reality you never really own your home free and clear so to speak.

Very depressing thought.....

[Boomer]

Originally Posted by Chatbrat

Gabelli Utility Trust--pays 8.77% .05/monthly--if you reinvest your dividends, you get shares @5% discount from mkt

Made me look, Chatbrat..........

Gotta luv the symbol it trades under. -- a reminder of what can (or should) be a big factor for every individual making investment decisions.

[Chatbrat]

I've had GUT forever, I've been averaging 15%, with reinvesting dividends--its a no-brainer--Mario Gabelli is a straight shooter

Its a stock,no need to pay anyone to invest it for you-

[RickeyD]

Originally Posted by JRichm369

The bond is a second mortgage that stays with the property until it is satisfied, thus it is part of the value of the property. If it has been paid off you or your estate will be able to sell at a higher price.

No, no and no.

[ColdNoMore]

Originally Posted by patfla06

Where can you get 7%??????

Take your pick.


Please note the date on the bottom of the valley.

[ColdNoMore]

Originally Posted by RickeyD

No, no and no.

Yes, yes and yes...you are absolutely correct.

[ColdNoMore]

Originally Posted by dewilson58

I agree with the Corporate America statements........leveraging debt works.

After adding in the Admin Fee, the effective rate on my bond was in excess of 7%. My investment return would have to be in excess of 10% (less taxes), to breakeven. So a guaranteed return of 10% (by paying off the debt), I decided to pay it off.

Every situation is different, every logic is different. Good luck to all on the chosen path.

Originally Posted by Villageswimmer

Look at your own Amortization Statement to see what the bond is really costing you over the 30 years. There is also an "administrative fee" tacked on annually.

Absolutely good points.

You need to actually know both what the debt service is really costing you, as well as what your actual returns are on investments when including the expense ratio.

However, if they are almost identical there is still something to be said for maintaining a certain amount of liquidity....for an opportunity that might arise.

Conversely, the personal feeling of no longer having that debt, while hard to quantify except by each individual....is also something to consider.




dewilson nailed it with....

Originally Posted by dewilson58

Every situation is different, every logic is different.

Good luck to all on the chosen path.

[theorem painter]

Originally Posted by RickeyD

No, no and no.

Originally Posted by JRichm369

The bond is a second mortgage that stays with the property until it is satisfied, thus it is part of the value of the property. If it has been paid off you or your estate will be able to sell at a higher price.

I disagree. When people buy a house they look at the comps. Not comps plus the bond or minus the bond. If you pay off a $25K bond there is no way you are going to get $25K more for your house than your neighbor's house that has a bond. It might sell more quickly but not at a higher price.

[VApeople]

Originally Posted by justjim

What you say is absolutely correct, however, you are also "leasing" your property from the Government. You pay your lease in the form of taxes each year. So in reality you never really own your home free and clear so to speak.

You are absolutely correct. We do not actually own anything. Our government has decided to say that we own our belongings and our property. We depend on our government to have enough military power to keep other countries from taking over our property. If our government fails to do that, we lose everything.

That is what happened to my Native American ancestors. Their government fought the European settlers in a war and lost everything. They were either killed in the war or captured and sold into slavery. Their daughter was then adopted into a white family, later married a white man, and that is why I am here today.

[Challenger]

Originally Posted by theorem painter

I disagree. When people buy a house they look at the comps. Not comps plus the bond or minus the bond. If you pay off a $25K bond there is no way you are going to get $25K more for your house than your neighbor's house that has a bond. It might sell more quickly but not at a higher price.

Show me the data--- and then it can be a rational discussion. Until then there is much misinformation circulating about the "bond" and the appropriate decision for each individual homebuyer.

[Barefoot]

Originally Posted by JRichm369

The bond is a second mortgage that stays with the property until it is satisfied, thus it is part of the value of the property. If it has been paid off you or your estate will be able to sell at a higher price.

Originally Posted by theorem painter

I disagree. When people buy a house they look at the comps. Not comps plus the bond or minus the bond. If you pay off a $25K bond there is no way you are going to get $25K more for your house than your neighbor's house that has a bond. It might sell more quickly but not at a higher price.

With no bond, your home may sell faster. But there is no guarantee it will sell at a higher price.

[Challenger]

Originally Posted by Barefoot

With no bond, your home may sell faster. But there is no guarantee it will sell at a higher price.

Show me the data that supports this premise. The is never any guarantee that the next sale will be comparable to anything.

[Bay Kid]

PAID! Free of debt.

[RickeyD]

Originally Posted by Bay Kid

PAID! Free of debt.

The human experience has proven, we are all never free from debt. We all owe someone/something, something. But Congrats to you !!!