Thanks for grouping this information Don, also interesting looking back.

Is it sneaky? It seems very transparent.

Recommendations for purchasing in the villages
 

I would definitely go with a lifestyle visit as they would explain most of everything you need to know in the Villages. They will try to sell you a new house but they can also show you preowned properties. I would not stick with a realtor from the villages as they are not licensed realtors. I would go with a licensed realtor and you can also go with a Villages Realtor and look at both type properties.

Exactly, primary advantage is bonds allow the infrastructure to be in place simultaneously with home construction.

Bonds carry with the property and are not a personal debt. They do not affect your credit. They are an annual expense unless paid off.

Bonds effectively reduce the amount of a loan if financing the house when compared to including the bond value in the cost of the home.

The true cost of a Bond is the difference between what that money could earn if invested and the Bond interest.

A simplified example - if the bond is 5% and you can earn 4% in a CD, true cost is 1%.

But many people are not comfortable with debt of any kind and have the resources to pay it off.

Your maintenance assessment was not affected by the Fire Assessment, but they are both listed on the non-ad valorem portion of your property tax bill but are completely unrelated.
You're correct that the bond is now higher in the newer section, where you are was built 10-11 years ago when prices and costs were much lower. My CYV bond was $13K, but that was based on a bond issued in 2012. My second home in Moultrie Creek has a bond that is 4x the CYV ($52K), a difficult pill to swallow but it is a full decade later and costs have been crazy.

Bonds will continue to increase with each new one issued, just as they have for the last 3 decades. Bonds are the highest they have ever been in the new sections, funny thing is is that's it's always been that way. In 2034 when people are paying bonds of $40K on a patio villa and $80K on a designer home and buyers saying that bonds are the highest they have ever been, the buyers will look at what we are paying today with longing.

One of the interesting things is here in the Villages the bond does not appear to add value to the place that you may be looking at. Meaning that if two identical places side by side, they are likely priced the same regardless if one for example has a bond, and the other the bond is paid off. The realtors likely price them the same. Doesn't make sense to me. But, you as a buyer can do your due diligence and look for the house you like and try to find one without a bond or a lower bond perhaps and get your own value out of that.

Those are monthly fees - right?

That is one of the most succinct and thorough explanation I have ever seen! Bravo!!!

Bond tax video

The Villages, Bonds, Taxes, Maintenance Fees and the CDD. What are they and why do we pay them?
https://youtu.be/A120kMpc2ug

I bought two years ago and my bond was 36K. I’m paying 3.1% interest rate. Why would I pay it off if I’m earning 5% in my investments? And I’ll be dead long before it’s paid off anyway. Let my heirs pay for it. Lol

This year. When I paid mine off the markets were not so healthy (and this has not been a good week).

With the Admin Fee..................You are probably over 5%.
Your investments are probably taxable...................you are probably under water.

The unfortunate side of the Bond process (CDD's), is that Consumers and Brokers are allowed to advertise misleading Home prices. I suppose the reason the FL legislature hasn't stepped in to regulate, is that it's good for business and Florida is a business friendly state.

The fact of the matter is, it's unfair to consumers. I bet there's not 10% of Villagers, who clearly understand the entire process and how it all works. It's perfectly clear that Buyer's don't understand it, or pre-owned home prices would be more sensitive to the remaining (or paid off) bond balance.

It's real money. It's not pretend money. It's sort of like renting the land your house is on for 20 years and after you finish paying your 20 years of "rent", you own the land.

The whole process is misleading and unfair to consumers, but surely legal and almost all CDD communities do it the same way.

Before you buy, ask for the deed restrictions for the district. Most of them are pretty much the same between districts, but there may be some differences. Understand what each of the restrictions mean.

Since the interest on the bond is not tax deductible (unless the house is a rental and it is expensed) if your 5% investment income is taxable you are about breaking even, making <1%.