[CoachKandSportsguy]

Originally Posted by Bill14564

That article is so lacking in detail that what this bond will cover is anyone's guess.

260,000 retirees in 130,000 homes makes sense if you make the reasonable assumption that there will be two retirees per home. If that is the final goal then approximately 48,000 homes would need to be added over the next two decades which would work out to 2,400 per year. Sumter County has added an average of 3,700 homes per year over the last six years with the best year having added 4,181 homes - the numbers could work.

Agree, but the article was poorly written. Factually correct about the developer wanting to borrow money. however, there might be more to the development than just a CDD. . .

[Rainger99]

It looks like the bonds in the next phase of building will be going up.

$180,000,000 divided by 3,860 houses is approximately $46,632.12.

On a $400,000 house, that is a significant increase in the total price.

[Worldseries27]

Originally Posted by teed_off

how did you come to this conclusion?

by utilizing the ______ method

[Caymus]

Just for curiosity, does anyone know what the yield and rating will be? Schwab doesn't seem to list anything below A. This offering will probably be somewhere in the "B's"

[BlueStarAirlines]

Originally Posted by Rainger99

It looks like the bonds in the next phase of building will be going up.

$180,000,000 divided by 3,860 houses is approximately $46,632.12.

On a $400,000 house, that is a significant increase in the total price.

Just grabbinbg a few bond prices from District 16, the bonds on a designer/premier home run from around $45k to $60k

https://www.districtgov.org/wp-conte.../Unit-294V.pdf

[asianthree]

Originally Posted by Rainger99

It looks like the bonds in the next phase of building will be going up.

$180,000,000 divided by 3,860 houses is approximately $46,632.12.

On a $400,000 house, that is a significant increase in the total price.

Originally Posted by BlueStarAirlines

Just grabbinbg a few bond prices from District 16, the bonds on a designer/premier home run from around $45k to $60k

https://www.districtgov.org/wp-conte.../Unit-294V.pdf

Enclave was $75,000. I believe is the largest bond in the history of TV

[golfing eagles]

Originally Posted by Worldseries27

by utilizing the ______ method

So, once again, what does the personal net worth of the Morse family have to do with their business of developing The Villages???? Some people have the ongoing Robin Hood mentality that somehow they "owe" us something. Others are merely jealous. We should be glad that they have chosen to make TV an ongoing concern, unlike most developments where the builder sells all the homes then disappears. Just look at today's news about the development near Orlando where the golf course closed and now they may build just about anything there.

[defrey12]

Originally Posted by village dreamer

wow ,could this be the beginning of the end for the villages ??? if they have to borrow a Mear 180 mil. to build. the family is worth 1 billon.

Yeah, they use their money as collateral. Whenever possible, one uses OPM (others peoples' money) in real estate and finance. Their money is still invested and working for them. It's just the way smart people do it...

[defrey12]

Originally Posted by Bill14564

That article is so lacking in detail that what this bond will cover is anyone's guess.

Is it the Developer who took out the bond that my CDD is paying through the money it collects from me? Or, did my CDD take out the bond in order to reimburse the Developer? If it's the latter then perhaps the bond in this article has nothing at all to do with the infrastructure bonds. Heck, the article actually states:

The proceeds of the upcoming bond offering will be used to finance the construction of 3,860 new residential units and add amenities like 27 holes of Championship golf and recreation centers, according to a presentation for investors.

Is there some reason not to believe that?

260,000 retirees in 130,000 homes makes sense if you make the reasonable assumption that there will be two retirees per home. If that is the final goal then approximately 48,000 homes would need to be added over the next two decades which would work out to 2,400 per year. Sumter County has added an average of 3,700 homes per year over the last six years with the best year having added 4,181 homes - the numbers could work.

Not only is it lacking in detail, it references the worst anit-TV propaganda POS of a movie ever made. What brush do you think HE's going to paint TV with?

[BrianL99]

Originally Posted by defrey12

Yeah, they use their money as collateral. Whenever possible, one uses OPM (others peoples' money) in real estate and finance. Their money is still invested and working for them. It's just the way smart people do it...

The Developer does not use his money as collateral for development. CDD bonds do the development, they are secured solely by the land and the Developer has zero risk.

Home building is an entirely different aspect.

[defrey12]

Originally Posted by Stu from NYC

We are doomed.

The sky is definitely falling! 🤪

[defrey12]

Originally Posted by Teed_Off

How did you come to this conclusion?

Ignorant of basic finance.

[Bill14564]

Originally Posted by golfing eagles

So, once again, what does the personal net worth of the Morse family have to do with their business of developing The Villages???? Some people have the ongoing Robin Hood mentality that somehow they "owe" us something. Others are merely jealous. We should be glad that they have chosen to make TV an ongoing concern, unlike most developments where the builder sells all the homes then disappears. Just look at today's news about the development near Orlando where the golf course closed and now they may build just about anything there.

I don't see it as any kind of Robing Hood mentality, that they "owe" us, or even that the Developer is still involved in the day-to-day running of the Villages. With most of us happy to be rid of debt, even going so far as to reach into retirement funds to pay cash for the next home, it is difficult to understand why a rich business would borrow money.

That's the knee jerk reaction but with a little more thought....

- This $180M follows an earlier $127M and who knows how many others. $100M here and $100M there and pretty soon you are talking about real money.

- Even if the family combined was worth $xxB, that money is divided among individuals and businesses. A few hundred million in loans could actually be a large percentage of the operating funds of a company that only has access to a small part of the $xxB

- Perhaps the family/company investments are lucrative enough that borrowing makes sense.

- No need to put their own money at risk if other people's money is available

- This might be the one: *IF* the funds from these bonds will be used to build the infrastructure and if there is an easy way to transfer the obligation to a CDD then this might be nothing new or surprising at all. Obtaining money through bonds that will later be assigned to the CDD and paid from the homeowner's annual property bills is just the way things are done around here.

[defrey12]

Originally Posted by Rainger99

It looks like the bonds in the next phase of building will be going up.

$180,000,000 divided by 3,860 houses is approximately $46,632.12.

On a $400,000 house, that is a significant increase in the total price.

True. But buying a home is ALWAYS a choice. Don't want the bond cost? Live elsewhere. Pretty simple.

[defrey12]

Originally Posted by Worldseries27

by utilizing the ______ method

And? Who cares...