Talk of The Villages Florida - Would the 38K bond on new homes be a deal breaker?

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- - Would the 38K bond on new homes be a deal breaker? (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/would-38k-bond-new-homes-deal-breaker-305976/)

I would be looking at preowned between 466 and 466A. Great area close to everything!

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Originally Posted by asiebel (Post 1757489)

I would be looking at preowned between 466 and 466A. Great area close to everything!

We moved here in Feb and purchased resale in same area. House 10 years old and only half of original bond left.

Think $ 38,000 would be more than most or at least us would pay

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Originally Posted by SnowflakeinDeLaVista (Post 1757379)

My husband and I look at it the same way we do with houses up north where the bond is already calculated into the price of the home: we combine the home price with the remaining bond to evaluate if the house is worth the cost. TV salespeople will tell you buyers do not consider the bond in making buying decisions, but they are wrong at least in our case. In some ways it seems like buying a new car in that as soon as you roll that car off the lot the value goes significantly down. Your house gets appraised. If the appraisal does not equate to the home price plus bond then you paid more than the market value for it. If you are ok with that then go for it. Also consider that many homes with the bond paid are older so may need renovations. You should likewise consider the cost of those renovations in you evaluation of an older house with no bond. We just bought an older home with no bond that was in need of some renovations. The market value was $25k more than what we paid and we are expecting to pay about $15k to renovate. The area is beautiful, great location, and we have equity from square one. A great buy for us.

Also, some pre-owned homes may have had upgrades or replacement maintenance done which increases the value. We live between 466 and 466A, and almost everyone in our neighborhood has a new roof recently, new AC/heating unit, etc. with the bonds almost paid off. Many have added granite and stainless, hurricane shutters, etc. and have mature landscaping. I'd advise people not to jump in and buy a new home, but check the pre-owned homes and see what's out there. You can save a lot of money and maybe end up with a nicer lot and better location in The Villages.

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Originally Posted by Stuart Zaikov (Post 1757492)

We moved here in Feb and purchased resale in same area. House 10 years old and only half of original bond left.

Think $ 38,000 would be more than most or at least us would pay

What was the bond 10 years ago?? And the time value of money.......probably not significantly different than $38k.

In 2000 the bond was $1800 on a designer in Santo Domingo. $38K is crazy!

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Originally Posted by charlieo1126@gmail.com (Post 1757373)

I’ve bought and sold 5 new homes in the villages and never paid the bond off , when I sold them a couple of people wanted to subtract the bond price I said no all my homes sold full price , plus whatever the bond was , if you plan on buying another home down the road don’t pay bond off

Exactly, there's no evidence a bond effects sale price when looking at the county tax records. Some buyers may walk but there are others right behind them.

If you can roll it over to your mortgage, or better pay it up front do it. My house was new in 2003, bond was $12,000, I let it go to my taxes, I still owe $5,000 and its still adds another $600 a year to my tax bill.

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Originally Posted by bebemary (Post 1757397)

Bond also includes interest for as long as bond not paid off. So REAL cost can be two to three times bond amount

And the interest paid on the bond is not potentially tax deductible whereas mortgage interest is.

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Originally Posted by manaboutown (Post 1757543)

And the interest paid on the bond is not potentially tax deductible whereas mortgage interest is.

Only non-deductible if you get caught. :1rotfl:

I would never pay it. Not with all the previously owned homes that have all the extras already installed, ie: gutters, landscaping in the back, an extra sized patio leaving the lanai, some with painted drives and lanais, shelves in the garage and the laundry room, and a paint color besides white. :a040:

Any home one buys ANYWHERE has the individual lot infrastructure costs (the bond amount) built into the pricing. It’s just that here in The Villages those costs are split out. Not a deal breaker.

The correct thing to do. The bond is amortized just like a mortgage, which means the interest is front loaded. You have already paid 80-90% of the interest. No point in paying off the remaining balance at this point.

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Originally Posted by mydavid (Post 1757540)

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Originally Posted by mydavid (Post 1757540)

Correct me if I'm wrong, but the balance of your bond should have no impact on your taxes, which are based on the assessed value of your home. The bond payment is listed on your trim notice for information only, not part of tax calculation. It's a fixed annual charge based on the unit that you live in. The amortization table is available online.

I could be wrong but I think he means he continues to make the bond payment with his tax bill in November.

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Originally Posted by Tom53 (Post 1757586)

My bond was costing 5.1%.
That’s more than I was willing to pay.