Mello-Roos versus Higher Price

P

paperboyNC

New member
Let's compare two homes:https://www.redfin.com/CA/Irvine/117-Prospect-92618/home/51682564
$1.260m
Mello-roos: $6,388.50 (2017-18), increasing 2% per year
Regular Property tax at 1.05%: $13,230
Total property tax at 1.05%: $19,618.50
Home insurance: $1,260/yr
Earthquake insurance: $264/yr
HOA: $2,580/yr
Annual mortgage payment (assuming $400k down and 4.25% rate): $48,761.04

Total first year annual costs: $72,483.54 ($6,040/mo)
Cost after five years (mello roos increased 2% per year): $73,148.46 ($6,096/mo)
https://www.redfin.com/CA/Irvine/100-Saybrook-92620/home/58556294
$1.435m
Mello-roos: $4,383.80 (2017-18), steady
Regular Property tax at 1.05%: $15,067.50
Total Property Tax: $19,451.10
Home insurance: $1,435/yr
Earthquake insurance: $851/yr (for whatever reason, the 92618 zip code is much cheaper than the 92620 zip code)
HOA: $1,320/yr
Annual mortgage payment (assuming $400k down and 4.25% rate): $61,098.96

Total first year annual costs: $84,156.06 ($7,013/mo)
Cost after five years: same
 
Tough call, but if both homes are equal (lot size and layout) then I'd probably go with the higher price home.
 
Break-even point between higher price and mello-roos

$100K in higher price:
$6,000 in Principal and Interest
$100 insurance
$1,050 property taxes

For every $100k higher price, the equivalent would be $7,150 in additional mello-roos (or higher annual HOA).
 
paperboyNC said:
Break-even point between higher price and mello-roos

$100K in higher price:
$6,000 in Principal and Interest
$100 insurance
$1,050 property taxes

For every $100k higher price, the equivalent would be $7,150 in additional mello-roos (or higher annual HOA).
Click to expand...

The funny thing is this gets forgotten after close of escrow. I remember next door being littered with comments during the homeless fiasco with GP residents stating... they pay so much more in taxes so they shouldn?t have to live near a homeless shelter/tent city.
 
bones said:
The funny thing is this gets forgotten after close of escrow. I remember next door being littered with comments during the homeless fiasco with GP residents stating... they pay so much more in taxes so they shouldn?t have to live near a homeless shelter/tent city.
Click to expand...

Haha. People complain about everything on Nextdoor and they always feel so entitled. Some bozo claimed that HOA rules and City laws said that no one else could park on the street in front of his home and he was going to turn in his neighbor.
 
paperboyNC said:
Let's compare two homes:https://www.redfin.com/CA/Irvine/117-Prospect-92618/home/51682564
$1.260m
Mello-roos: $6,388.50 (2017-18), increasing 2% per year
Regular Property tax at 1.05%: $13,230
Total property tax at 1.05%: $19,618.50
Home insurance: $1,260/yr
Earthquake insurance: $264/yr
HOA: $2,580/yr
Annual mortgage payment (assuming $400k down and 4.25% rate): $48,761.04

Total first year annual costs: $72,483.54 ($6,040/mo)
Cost after five years (mello roos increased 2% per year): $73,148.46 ($6,096/mo)
https://www.redfin.com/CA/Irvine/100-Saybrook-92620/home/58556294
$1.435m
Mello-roos: $4,383.80 (2017-18), steady
Regular Property tax at 1.05%: $15,067.50
Total Property Tax: $19,451.10
Home insurance: $1,435/yr
Earthquake insurance: $851/yr (for whatever reason, the 92618 zip code is much cheaper than the 92620 zip code)
HOA: $1,320/yr
Annual mortgage payment (assuming $400k down and 4.25% rate): $61,098.96

Total first year annual costs: $84,156.06 ($7,013/mo)
Cost after five years: same
Click to expand...

Good comparison. I think from the design and decor chosen at saybrook, is nicer and more appealing to me. The backyard is done nicely. Until I look above the retaining wall. This house surround by several home looking and peering not only into the backyard but look right into your house. Privacy screen is the first thing I would need to address for this house. Although the lot is bigger in the two for comparison, it feels claustrophobic and boxed in. Location is no go for me. Price is much higher also between the two. People keep on using 2% increase in the mello roos as a mental block from going forward but at a few hundred extra a year, why sweat it. Unless, you really stretch thin to the max and more, then by all mean live the renter life is better. No worry about fixing anything and no worry about 2 % increase. You do have to worry about rent may increase every year.
 
I'm with Compressed Village, there are other things to consider here other than just price.

The GP property is more of a standard SFR on a street whereas the SG one is on a motorcourt, but the SG one does have a nice lot.

The GP unit is a corner unit and has a functional backyard... it also has the additional in-law suite with a kitchenette which some may value quite a bit more.

According to BTB's land toxicity chart, SG is safer than GP, but I think the GP one (Pavilion Park) is on the former nursery land so probably the same.

Tough call... and if you're just a conventional buyer without a rich foreign uncle, may be harder to qualify for the GP property.
 
I'd take the end-unit in pavilion park. Less neighbors, less noise, more privacy.

That said, the satellite view of the SG property shows different motorcourt sizes. I thought they were standard size. 100 Saybrook's motorcourt is almost as wide as the street. Too bad the neighbor (I presume) parks their vehicle in front of their house. The opposite side motorcourt is slightly smaller (in green). The one down the street is so much more narrow (circled in blue).



 

Attachments

  • motorcourt.JPG
    motorcourt.JPG
    507.4 KB · Views: 126
Maserson said:
I'd take the end-unit in pavilion park. Less neighbors, less noise, more privacy.

That said, the satellite view of the SG property shows different motorcourt sizes. I thought they were standard size. 100 Saybrook's motorcourt is almost as wide as the street. Too bad the neighbor (I presume) parks their vehicle in front of their house. The opposite side motorcourt is slightly smaller (in green). The one down the street is so much more narrow (circled in blue).
Click to expand...

My thoughts was the same. Man, TIC should earn award for packing it tight.
 
You must log in or register to reply here.
Back
Top