[Newbeginnings]

i just bought a designer home and also surprised at the interest rate, very high - high 6% range. Debating should I take a low interest home equity loan and pay off over 10 years, or should I take money out of the bank and pay it off, or just leave it alone, it's that interest payment that kills me and not being able to deduct it off the taxes, as I understand you can't take a deduction from what I've read and talked to an attorney.

[mickey100]

Originally Posted by djohnson

i just bought a designer home and also surprised at the interest rate, very high - high 6% range. Debating should I take a low interest home equity loan and pay off over 10 years, or should I take money out of the bank and pay it off, or just leave it alone, it's that interest payment that kills me and not being able to deduct it off the taxes, as I understand you can't take a deduction from what I've read and talked to an attorney.

Yes, that is the case you are not allowed to deduct it off taxes. That interest rate is ridiculous in this interest rate environment. The question is how long you will live in the home. There is a break even point, off the top of my head I'm saying it was 7 years (someone would need to check), could be wrong, whereby if you stay in the house 7 years, you're better off just paying off the bond upfront, because of the extra interest you're paying each year. You'd be surprised how fast 7 years comes up. We paid ours off, and I'm glad we did. I figure if we want to sell our home, it will be an inducement to attract buyers who are looking for a low bond or "bond paid" home.

[Challenger]

Originally Posted by djohnson

i just bought a designer home and also surprised at the interest rate, very high - high 6% range. Debating should I take a low interest home equity loan and pay off over 10 years, or should I take money out of the bank and pay it off, or just leave it alone, it's that interest payment that kills me and not being able to deduct it off the taxes, as I understand you can't take a deduction from what I've read and talked to an attorney.

If your bank account is not paying 6%( and I'm sure that it isn't) I would consider paying off the Bond. Payoff would be the functional equivalent of investing at 6% guaranteed return. That assumes that you would be left with sufficient cash reserves. If you do the payoff and need funds later, you can always do a home equity loan. There are not many oppurtunities for guaranteed investments at a 6% guaranteed return at this time.

[jimbo2012]

It's still not a lot of money on a monthly basis to get that bent out of shape about, we pay more for our amenities fees every month or cable, those R not tax deductible.

[graciegirl]

I think you should consider not paying it off. You would be amazed at the movement between homes in this place. In our village, almost 40 percent moved from another village.

When we first were looking at homes here, we ran into a couple who were looking for the exact same model but with a view. They said they sold their house in a week by themselves.I was totally surprised that someone would want the same house on another lot. I have found that it is much more common than I could have imagined. But we had just gone through all of the rigamarole of moving and I KNEW I would never move again...but we did..last year.

It is not only that people want a bigger house, sometimes they want a smaller house with less expenses.

There are all kinda stories in the Naked City.

You may not think you would ever EVER move again, but very well may find yourself doing so, and if you do the lower list price without the bond added in is more of a draw to prospective buyers.

That's my story and I'm stickin' to it.

[jimbo2012]

, I agree, it is always easier to sell at a lower price

[Challenger]

Originally Posted by graciegirl

I think you should consider not paying it off. You would be amazed at the movement between homes in this place. In our village, almost 40 percent moved from another village.

When we first were looking at homes here, we ran into a couple who were looking for the exact same model but with a view. They said they sold their house in a week by themselves.I was totally surprised that someone would want the same house on another lot. I have found that it is much more common than I could have imagined. But we had just gone through all of the rigamarole of moving and I KNEW I would never move again...but we did..last year.

It is not only that people want a bigger house, sometimes they want a smaller house with less expenses.

There are all kinda stories in the Naked City.

You may not think you would ever EVER move again, but very well may find yourself doing so, and if you do the lower list price without the bond added in is more of a draw to prospective buyers.

That's my story and I'm stickin' to it.

What would the benefit of not paying off the bond be in the scenarios you describe.

[Bogie Shooter]

Originally Posted by Villageshooter

Most of us will not live long enough to payoff the bond,,, I just look at as another thing my kids will have to do when they sell my stuff at the estate sale.... Just more blood money squeezed out us ,,, for the expensive koolaide we have drank

What do you mean by "blood money"??

[graciegirl]

Originally Posted by Challenger

What would the benefit of not paying off the bond be in the scenarios you describe.

A home purchased at 228k plus 21k would be listed at 249k or more.. if you pay off the bond but it can be listed at....a lower price if you do not.

There is NO difference but people may look at it sooner as it does not require the initial amount of cash or money loaned. A marketing situation but unfortunately not all people who are new to the Villages can see the difference and may be drawn to a seemingly lower priced home.

PLUS, I am guessing that many people were like we were when we first bought here... Are we gonna like it? What if we don't and want to sell it? We can sell it quicker at a lower price if we don't pay off the bond.

[murray607]

Can someone enlighten me as to exactly what Bonds are and what they are for?

Is there a bond on all new homes? We are thinking of buying a new home vs. a pre-owned home, but there is nothing in the new home listing about a bond.

An example is a 2/2 in Fernandina VNH#: 952072. Price is $139,513, if I were to buy this one, is there a bond to pay as well?

Some of the pre-owned villas listed have no bond and some have low-bond, but there is nothing at all that I can see on the new homes.

[jimbo2012]

yes, those R about $13,000 bond add on paid over 30 years about $60 a month

[Bogie Shooter]

Originally Posted by murray607

Can someone enlighten me as to exactly what Bonds are and what they are for?

Is there a bond on all new homes? We are thinking of buying a new home vs. a pre-owned home, but there is nothing in the new home listing about a bond.

An example is a 2/2 in Fernandina VNH#: 952072. Price is $139,513, if I were to buy this one, is there a bond to pay as well?

Some of the pre-owned villas listed have no bond and some have low-bond, but there is nothing at all that I can see on the new homes.

Welcome to TOTV. The bond is for the infrastructure in your Villages and is spread over the acreage.
It is worth mentioning that when looking at a thread if you read all of the posts the information you are seeking may have all ready been explanined.
For example, reading post #4 you can see anyone can determine the bond on any homesite by going to the provided link.

[murray607]

Originally Posted by Bogie Shooter

Welcome to TOTV. The bond is for the infrastructure in your Villages and is spread over the acreage.
It is worth mentioning that when looking at a thread if you read all of the posts the information you are seeking may have all ready been explanined.
For example, reading post #4 you can see anyone can determine the bond on any homesite by going to the provided link.

Hi Bogie,

I did read all of the posts, but none of them said what the bond was for and whether all of the units had to pay. Because the info was not there, I had to ask.

But now I understand that it is similar to a development fee.

It may be helpful if Villages sales could put this info in their property lsitings, so people are aware up-front of extras that would be due after purchase.

thanks, Jim

[gomoho]

"It may be helpful if Villages sales could put this info in their property lsitings, so people are aware up-front of extras that would be due after purchase."

I agree and wish it was included in the price of the home, but then they would appear to be too expensive for what you are getting. Believe me you will be told about the bond at some point by your REALTOR or sales agent - they have too much to lose not to disclose this information. The key is how well they explain it or if they kind of "poo-poo" it likes it no big deal. I don't have a problem paying the bond - I do have a problem with the interest rate in this financial climate

[Challenger]

Originally Posted by graciegirl

A home purchased at 228k plus 21k would be listed at 249k or more.. if you pay off the bond but it can be listed at....a lower price if you do not.

There is NO difference but people may look at it sooner as it does not require the initial amount of cash or money loaned. A marketing situation but unfortunately not all people who are new to the Villages can see the difference and may be drawn to a seemingly lower priced home.

PLUS, I am guessing that many people were like we were when we first bought here... Are we gonna like it? What if we don't and want to sell it? We can sell it quicker at a lower price if we don't pay off the bond.

The price of the house is the cash consideration plus the assumed liabilities no matter what they are called. If a realtor does not clearly point this out to a buyer , it is at least unethical(IMO). I find it hard to believe that many buyers do not consider the total purchase consideration when comparing prices unless they are misled by the sales person.

In our case(new home) we questioned the bond issue at the outset and our sales rep was unclear herself about the implications and options open to the purchaser.

We are cheerleaders for TV and have great respect for the "Developers " and what they have done . The confusion on the Bond issue needs to be dealt with since it is not the common method of financing in most other areas of the country.