[ficoguy]

My Bond in CDD11-Unit 35 runs about $140 a month
I was going to pay it off but when you list your house most people assume there is a bond on it
So if I pay off the bond balance of $ 22,000 that doesn't really translate into me jacking up my asking price from $300 to $322

[graciegirl]

Originally Posted by Love2Swim

Wow, I had no idea they had gone that high . It seems like it would make a pre-owned home with no bond much more financially attractive, especially if it was in a central portion of The Villages.

In other areas the price of the bond...would be included in the price of the home but they do not do this here.

Older homes have had bonds and they are either paid or not paid, so their cost would still reflect the bond one way or another.

I imagine the bond is up because the cost of building the infrastructure has gone up just like other like processes are more expensive now than they were some years ago.

[La lamy]

Originally Posted by Goldwingnut

No. Once the bond is paid, it’s paid.

Thanks for this info Goldwingnut.

[CoachKandSportsguy]

The question comes down to cash flow and financing, limiting pricing options. the total price of ownership includes the bond (sometimes verbally invisible), but some discussions are about cashflow, cash cost versus price. Cash flow wise, which includes the cost of money, irrespective of the total price, the home owner has the option to pay off the bond which is a much smaller chunk of the total price, which can reduce the monthly payment in total or the monthly carrying cost. The decision comes down to cash available for purchasing the property, and the future cash flow requirements, which have limitations.

Enough cash, why bother with paying the monthly cash rental fee on the bond. Not enough cash to pay off the bond without a savings or life style impact, then the cash flow and monthly cost becomes a more dominant decision point.

The point is that price and cost are two different points of view, one is the seller, price, the other is the buyer, cost, which includes cash lost or cash financing or monthly rental fee of money, including the bond..

Within the villages, new build cost = land (fixed) + build (variable) + bond (fixed). Resale = ALL negotiated price with embedded bond variable balance. The older the house, the less bond, but currently more desirable location depending upon personality and goals, and usually more negotiable, subject to one's ability to calculate and negotiate a relatively fair market value.

So, now that the purchase combinations are many, hundreds of options of new versus resale at any point in time, in deciding how to move to the villages, and the buyers cash flow ability, is usually fixed. So picking on bond as a decision point is a behavioral bias of attribution: (attributing the decision to one variable while excluding many others, such as location including view, location to amenities, cash flow, house plan, usage - homestead or snow bird, future lottery winnings (future income) , patience by relying on negotiation (flexibility), etc)

A reader of my posts may realize that I mention behavioral biases a lot, because they run our lives, whether people realize it or not. And people's reactions, posts and decisions all reflect their biases, part of one's personality and viewpoints, and usually limited to themselves, but projected onto others. And with money, there are many complex issues, some quantifiable, mostly behavioral.

Time to get outside!

sportsguy's crappy opinion

[DecaturFargo]

I would absolitely not give the Morses $38,000 more money, especially since there's no connector,barely any restaurants, and no town center. What are you getting?

[davem4616]

Originally Posted by Ginsanders

No bonds allowed in Lake County, that why we bought where we did and love it.

ah, not true...I'm in Lake County and we have a bond

[davem4616]

Originally Posted by ficoguy

My Bond in CDD11-Unit 35 runs about $140 a month
I was going to pay it off but when you list your house most people assume there is a bond on it
So if I pay off the bond balance of $ 22,000 that doesn't really translate into me jacking up my asking price from $300 to $322

exactly my concern about paying off the bond

[champion6]

Originally Posted by Ginsanders

No bonds allowed in Lake County, that why we bought where we did and love it.

That is no longer true. The homes in Pine Hills and Pine Ridge have a bond. They are in Lake County.

[mk1126]

Yes, a definite 'deal broker'. Look at building sites over on 466 A by Lowe's for compare. But, hey, there still is a lot of land for them to purchase on down to Orlando! cha-ching!

[Dana1963]

Originally Posted by KEVIN & JOSIE

Bonds have escalated to 38K on new homes. Would this be a deal breaker on a new home purchase, or would you consider it just the cost of living in The Villages and enjoying the active lifestyle?

The BOND would have gone up MORE THAN 38,000 if we didn't get screwed by a 25% tax increase by county commisioners an Morse Syndicate

[merrymini]

Premiums to be on a golf course were very high and I paid it more than five years ago. I do not know what they were for ponds at that time. Since the interest rate on the bonds runs over 6 percent, if you decide to stay in your house for any great length of time, paying off the bond makes economic sense. I would certainly not eat it if I sold my house. Many people do not do the math. Buying a house with a bond would be like paying an additional mortgage on their house. How do they not see that? I am surprised to hear that the density south of 44 is less, not because I do not see it, driveways are shorter ,etc., but they are loaded with villas and I would have assumed their gain in density because of that would have balanced out the number. I have not, however, counted the housing units.

[donassaid]

Would certainly be a deal breaker for me, especially when you have no way to recover that cost if you need to sell in the short run.

[Boilerman]

Originally Posted by KEVIN & JOSIE

Bonds have escalated to 38K on new homes. Would this be a deal breaker on a new home purchase, or would you consider it just the cost of living in The Villages and enjoying the active lifestyle?

Well for me the deal breaker would be buying a house south of 44 so far from everything. But for you, if that’s where you want to live, just consider it part of the purchase price and act accordingly.

I’ve never understood most people’s obsession with having a new house vs. buying a pre-owned house. You sink a lot of cash into the typical home upgrades and the lower new home price is then offset by the cost of upgrades and the bond.

My advice is to find a pre-owned house south of 466A. Newer homes, more central location, younger more active neighbors, upgrades all done, lower or paid bonds. Lots of houses for sale so you can be picky. And use both the Villages sales agent and a MLS agent to see all the resales.

[dewilson58]

It's just part of your house cost. Either you pay it off or you finance it. Simple.


If you can't afford it, either purchase less house or move on. Simple.

[LiverpoolWalrus]

Originally Posted by CoachKandSportsguy

So picking on bond as a decision point is a behavioral bias of attribution: (attributing the decision to one variable while excluding many others, such as location including view, location to amenities, cash flow, house plan, usage - homestead or snow bird, future lottery winnings (future income) , patience by relying on negotiation (flexibility), etc)

This is what I love about Talk of the Villages!

Now...to answer the OP's question, yes, the bond in the far flung Villages to the south would be a dealbreaker. In fact, it was a deal breaker when I bought in January. I opted to buy a resale close to Lake Sumter with no bond. It's 14 years old with the original roof, but the cost of renovations will be less than the bond, and I'm in a location that can't be beat.