Is it true great park mello roos is over $1000 a month?

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Kick53rv3

New member
Just starting to look for homes in Irvine area, my coworkers said that, Any current residents can comment if that is true? Wouldn?t that equate to $200k worth of loans? (As in monthly payment for $1m elsewhere would be equal to $800k at GP?)

If this is true why would anyone buy great park? Am I missing something?
 
It depends on the home size typically. There are areas of GP where the MR is in the $5,000 to $7,000 range but there are areas that are more than $12,000 annually. GP including Altair has the highest MR in all of Irvine. And yes $1,000 per month payment can equate to almost $250k in loans assuming 2.75% rate.

But you cannot analyze it as the full MR amount since you need to compare to the next best alternative. Many newer areas of Irvine have a $3,000 or so annual MR as well so you need to see what the delta is there. Keep in mind too the MR in GP is in perpetuity since it goes towards maintenance of the Great Park itself. Essentially another "HOA fee" whereas other areas will have their MR that ends in 20-30 years.
 
Property tax rate for GP is around 1.8-1.9% depending on the home. Home prices look cheaper on paper but you pay for it over the course of home ownership. I suspect some people buy for that reason and others simply like the area and don't mind paying a little more in property tax.
 
GP MR also goes up (2%/year if I remember correctly) every year and will never expire. MR of other places won?t increase and will go down when reaches expiration. It will further increase the delta over time
 
sunflower said:
GP MR also goes up (2%/year if I remember correctly) every year and will never expire. MR of other places won?t increase and will go down when reaches expiration. It will further increase the delta over time
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Really? Never heard about MR goes up every year perpertually
 
akula1488 said:
sunflower said:
GP MR also goes up (2%/year if I remember correctly) every year and will never expire. MR of other places won?t increase and will go down when reaches expiration. It will further increase the delta over time
Click to expand...

Really? Never heard about MR goes up every year perpertually
Click to expand...
I believe this is only the case for GP properties.
 
It was discussed in this forum before. Just google ? Irvine great park mello roos 2%? and you should find more details. I once checked the property tax records of several properties in GP and did see a 2% MR increase every year. It is up to 2%, so the increase might not happen to all properties. Buyers should be aware and do their homework before purchasing.
 
sunflower said:
GP MR also goes up (2%/year if I remember correctly) every year and will never expire. MR of other places won?t increase and will go down when reaches expiration. It will further increase the delta over time
Click to expand...

GP MR can go up by 2% per year but not every year.
 
Cares said:
sunflower said:
GP MR also goes up (2%/year if I remember correctly) every year and will never expire. MR of other places won?t increase and will go down when reaches expiration. It will further increase the delta over time
Click to expand...

GP MR can go up by 2% per year but not every year.
Click to expand...
The disclaimer announcing the special taxes is a 10-page document that shows perspective homeowners the cost to their home and a basic overview of the cost range in their neighborhood. It also states that the maximum tax can increase by 2% annually for the first 40 years after the special bonds were issued, and can then grow by 3% every year after that.

In the Great Park, the taxes are designed to automatically increase by that 2% annually according to city records.

The article mentions the above ^https://voiceofoc.org/2020/03/the-g...meowners-are-paying-for-the-citys-big-dreams/
 
Maybe my comment wasn't clear. My point is the it CAN go up but doesn't necessarily mean it WILL go up every year.
 
I posted this before but I?ve calculated the increase nearly every year and it?s been like 1.99547% for 5 years straight.  Imagine if they did the full 2%!
 
aquabliss said:
I posted this before but I?ve calculated the increase nearly every year and it?s been like 1.99547% for 5 years straight.  Imagine if they did the full 2%!
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The home I'm looking at right now a buyer only increased 0.75% from 2019 to 2020 but did increase 1.989% from 2018 to 2019.
 
Cares said:
Maybe my comment wasn't clear. My point is the it CAN go up but doesn't necessarily mean it WILL go up every year.
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no, your comment was clear. I think you didn't understand what the article said. It's automatically set to increase by default by the maximum (2%) each year according to the city records. So maybe the change to "automatically" increase to the maximum was set recently. Article was dated in March 2020.
 
? Eventually, all of the bonds passed off of the special taxes must be paid back by a set date that is different for each bond, but falls between 30 and 35 years. After all the bonds have been paid off, the taxes are cut to 1/3 of their value. They will still increase by 3% annually.?
 
sleepy5136 said:
Cares said:
Maybe my comment wasn't clear. My point is the it CAN go up but doesn't necessarily mean it WILL go up every year.
Click to expand...
no, your comment was clear. I think you didn't understand what the article said. It's automatically set to increase by default by the maximum (2%) each year according to the city records. So maybe the change to "automatically" increase to the maximum was set recently. Article was dated in March 2020.
Click to expand...

This isn't the case though. Here's just 1 random home I pulled in GP.

238 Denim, Irvine, CA 92618
2020 value $1,427,949
2020 total tax $22,388.28
2020 special assessments $8,059
2020 base tax rate ($22,388.28 - $8,059) / $1,427,979 = 1.003%

2019 value $1,399,950
2019 total tax $22,037.16
2019 base tax (1.003% * $1,399,950) = $14,048.31
2019 special assessments ($22,037.16 - $14,048.31) = $7988.85

2020 increase ($8,059 - $7,988.85) / $7,988.85 = 0.878%

There are many other homes from 2019 to 2020 which increased by less than 1% in GP.
 
Cares said:
sleepy5136 said:
Cares said:
Maybe my comment wasn't clear. My point is the it CAN go up but doesn't necessarily mean it WILL go up every year.
Click to expand...
no, your comment was clear. I think you didn't understand what the article said. It's automatically set to increase by default by the maximum (2%) each year according to the city records. So maybe the change to "automatically" increase to the maximum was set recently. Article was dated in March 2020.
Click to expand...

This isn't the case though. Here's just 1 random home I pulled in GP.

238 Denim, Irvine, CA 92618
2020 value $1,427,949
2020 total tax $22,388.28
2020 special assessments $8,059
2020 base tax rate ($22,388.28 - $8,059) / $1,427,979 = 1.003%

2019 value $1,399,950
2019 total tax $22,037.16
2019 base tax (1.003% * $1,399,950) = $14,048.31
2019 special assessments ($22,037.16 - $14,048.31) = $7988.85

2020 increase ($8,059 - $7,988.85) / $7,988.85 = 0.878%

There are many other homes from 2019 to 2020 which increased by less than 1% in GP.
Click to expand...
If you're saying many homes, that means the city record is lying. Which I find difficult to believe but who knows. Others have also mentioned all the searches are also increasing by 2%. So maybe there was a timeframe or cutoff period where homes built/sold before a certain timeframe is exempt from the 2% max increase.
 
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