38k bond
 

My wife and I have been renting in TV for several months each year for past few years. We are getting ready to retire, downsize, and by a smaller home. Most of the homes we look at are basic builder grade, have cheap cabinets and countertops, have too much deferred maintenance, and are too overpriced. We don't want to spend another $120,000 to bring it up to a level found in houses outside TV. When you add in the taxes and bond it is not an affordable lifestyle we want in retirement. Plus the all the Villa Villages remind us an overpriced mobile home park. Just our observations.

You come here every year to rent, for what reason? If you're looking for a bargain go to Pasco or Hernando County and get a home in a 55+ community for half the price just 20 minutes from the Gulf, that's what I would do if price was the only consideration. The reason they can ask a lot more for the homes, you should have already that figured out and saved your first post for something important.

Here's my overprice mobile home, as you call it. I paid $158K new in 2011 and I've put about $20K into the home. I don't think too many trailer parks look like our villa community, maybe that is just me. It's now been appraised for $249K, that's inflation.

https://scontent-mia3-1.xx.fbcdn.net...b0&oe=5ED4956E

Such a handsome home!

But a home in Elsewhere, USA would have that $38,000 included in the purchase price. So in order to get a mortgage, the Elsewhere house must appraise high enough to finance the total price. Also, the Elsewhere mortgage’s interest rate would be lower than 6.75% and the term of the Elsewhere mortgage would probably be longer than any TV bond financing term, resulting in much higher monthly payments. And the mortgage interest on the Elsewhere (primary) home would be tax deductible. A buyer would also consider the higher new home amenity fees, property taxes, as well as the current lack of accessibility to needs and conveniences. Since golf is declining in popularity, the new areas have fewer courses. The Villages competes for new retiree buyers far beyond its borders. So the Developer sets the price of the bond, then the Bank collects higher interest on the bonds. Wow. I wonder... who owns Citizens First Bank?

I consider it a cost to live in the section I wanted.

Apparently, TV's founder was busy founding other things too. Citizens First Bank - Wikipedia

In my old age I've learned that businesspeople avail themselves of whatever financial benefits they can. If it's lucrative and not illegal, they jump on it. That's part of the "success" formula and is the way the game is played. Business is not all sunshine and butterflies. We, the consumers, if after considering the ethics of the situation or whether it's in our own financial interest, have the option of not playing the game. I for one chose not to play the bond game.

Not taking sides, it's just the way it is.

You were doing fine at first but fell apart at the end. The bond price is not set by the developer, it is determined by total amount spent for development, divided by the total acreage and then factored by the subdivision acreage divided by the number of homes in the subdivision. The rate of the bond is determined by the market at the time of offering. The bond holders receive the interest paid not a financial institution. The Citizens First Bank has nothing to do with the bonds. If I remember correctly the last bonds sold were facilitated through Chase.

As far as the amenity fee goes, it doesn't matter if you buy a new or existing home, the amenity fee paid is the prevailing rate at the time of purchase, currently $163/month. Similarly any SOH act savings disappear when a home is resold. A $300K home purchased in DeLuna today would pay the same property tax as a $300K home in Alhambra.

The new areas actually have fewer homes per hole of golf than areas north of SR44, it's really about simple math here. No there's not a championship course built yet because there are not enough homes to support it, it takes about 6500-7000 homes on average to support a championship course and they are not quite there yet south of SR44. Remember, championship courses are not amenities, they are a private business that must make money to survive.

As far as stores and restaurants go, 466 & 27/441 were barren for a long time when those areas first started development, the difference is they didn't have the benefit of multiple internet sites where people went to complain and whine about every little thing. The Villages can build all the building for store and restaurants they want, but if a business doesn't feel they want to move there they can't be forced to and the building will remain empty. The demographics of The Villages is a very unique and challenging one and surviving in it takes a lot of planning and risk taking.

Why did you continue renting for years? Where are you going to buy?

Only if the yearly payment didn’t fit into my budget.

Thanks for the clarification, GoldWingNut. My Dad loved those whisper-quiet bikes too.

As we all know, the developer doesn't make all his money just from just selling homes. As you pointed out, his Citizens Banks turn a good profit. Here's one most don't even consider. Almost every golfer in TV whether you play the championship or walk and play the executives for free, they all belong to the teetime system. That's $8 a month on your credit card, $96 a year for basically doing nothing but provide a interactive website. Let's say they're are 20,000 who belong, it might be way more, and at $96 a year times 20,000 equals $1,920,000. Pretty good pocket change for a website.

My property taxes went up over $1000 or 25% this year. You must be a Florida resident. Besides raising the tax rate, the Sumter County assessor, instead of doing his job and raising property market values slowly and steadily over a period of years to reflect reality, decided to hike property market values in The Villages by 15+% last year in one fell swoop.

Because of SOH (Save Our Homes Act = Shaft Out-of-State Homeowners Act), snowbirds were hammered with much higher property tax increases than you saw. The assessed value of the home of a Florida resident can only increase by the Consumer Price Index every year (around 2%) even though its market value as determined by Sumter County went up by 15%. On the other hand, the snowbird (non-Florida resident) saw the 15% market value increase translated directly into a 15% assessed value increase in just one year. The increased tax rate is then applied to this increased assessed value (2% vs 15%) minus any homestead exemption.

A big problem is that the agents don't tell people about the bond until the buyers are emotionally vested in the house they want. I have an acquaintance who was interested in buying here. I told him to ask how much the bond is on the house he was interested in. The response he got "it's based on the price of the house." That's not an answer!! They really don't want you to ask.

We just landed a house in Sumter county built in 2008. Bond never paid off. 12 years later as we take the helm - current balance is 34k - it started at 45k.

38k is a reduction in my world.

This house checks off a ton more boxes then we ever expected. So we triggered the purchase knowing the real agreed price was contract price plus bond balance.

It’s a choice - some are painful others aren’t. Find your own happy path...and trigger that direction.

Yikes! So what happens to the assessed value when the houses are sold?

Does the FL residents’ assessed value suddenly jump up to current market value when the sale is recorded?

I’m sure the home with an out of state owner would not have a reduction in their assessed value even if it is sold to a FL resident.

Does the disparity in assessed value remain forever?