Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#61
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Does that calculation consider an inflation estimate over the period of the bond?
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#62
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I hate having any debt at all. But, if you are going to sell your house within the next 5 years or so, I think you will come out ahead by not paying off the bond. In most cases, you will not be able to increase your selling price to cover the cost you incurred to pay off the bond.
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#63
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I know that has been historically true for the Villages however if you raise taxes you lose value compared to other areas that do not. So your value may not cover your bond expense it depends on whether the developer and county exceed the market and they are adding 30,000 more homes. We will all see.
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#64
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A few months ago I put out a video that explained the bonds, what they're for, and how they are determined. Some may not have seen it. Here it is again.
Bond Video
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Don Wiley GoldWingNut (a motorcycle enthusiast not a gilded fastener) Village of Hillsborough www.goldwingnut.com YouTube –YouTube.com/GoldWingnut and YouTube.com/GoldWingnutProductions Carpe diem quam minimum credula postero Society is produced by our wants, and government by wickedness; the former promotes our happiness positively by uniting our affections, the latter negatively by restraining our vices. - Thomas Paine, 1/10/1776 |
#65
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Thanks for getting me to look at my bond. The current balance on my 4 year old bond is about $15,000. The interest rate is 4.3 percent. When you include the admin fee, the effective rate is only 4.8 percent. That is less than I usually earn on my diversified investment portfolio, so I can't see any reason to pay it off early.
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#66
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Quote:
Since the interest and fees on the bond are not tax deductible one would need to earn - risk free - in excess of 4.8% AFTER TAXES in order to justify not paying off the bond. At least from an income viewpoint. Of course if one pays off the bond and turns around and sells the house one would be unable to price the house sufficiently higher than competing for sale homes with bonds to recover the paid off bond principal.
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"No one is more hated than he who speaks the truth." Plato “To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine |
#67
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Quote:
Last edited by retiredguy123; 10-21-2019 at 06:55 PM. |
#68
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We did, bought a beautiful pre-owned home with a bond balance of zero.
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#69
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I don't have a bond but this bill looks like 30 years, 2007- 2037
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#70
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Ohiobuckeye
You’re exactly right Chatbrat! TV doesn’t care if you buy or live there because there’s a line of waiting people that don’t care what the bond or tax are!
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#71
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The preowned house I bought had the bond paid. It was mentioned on the blurb sheet, but the agent never mentioned it. Since not being acquainted with the bond process I didn't think much about it and did not consider it when making an offer. So I would guess that paying off your bond early won't be much of a consideration on the sell price to the buyer.
Sent from my SM-N960U using Tapatalk |
#72
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A mere pittance. You're right "only" was a bad choice of words.
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#73
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I appreciate the thoughts about the bond being paid off. What I wasn’t sure of was the SECO transformer at the back but I took my EMF measuring machine and the house is very low. |
Closed Thread |
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