Can we talk Mello-Roos ... AGAIN?
- Thread starter Laing_Lies_IHB
- Start date
Laing_Lies_IHB
New member
<p>That's the whole basis for my initial question .... with the Mello-Roos example above already being so high ... and then increasing at 2% each year ... AND an HOA (which may decrease) ....</p>
<p>when the prices of homes do decrease as everyone expects them to do ... your Mello-Roos, property tax and HOA will be a huge percentage of your mortgage. Thus, Mello-Roos becomes even a bigger factor in purchasing these new homes! </p>
<p>(Again, I'm a little slow today, so don't know if that made too much sense).</p>
<p> </p>
<p>when the prices of homes do decrease as everyone expects them to do ... your Mello-Roos, property tax and HOA will be a huge percentage of your mortgage. Thus, Mello-Roos becomes even a bigger factor in purchasing these new homes! </p>
<p>(Again, I'm a little slow today, so don't know if that made too much sense).</p>
<p> </p>
No_Such_Reality_IHB
New member
<p>Wow, detached home in Columbus, minimum $6000/yr in Mello-Roos. Plus the property tax. Correct me if I'm wrong, but doesn't that pretty much put the annual "tax" bill at a minimum of $13,000 for a detached home there and probably higher?</p>
<p>The behemoths being built there will carry over a $20K "tax" bill?</p>
<p> </p>
<p>The behemoths being built there will carry over a $20K "tax" bill?</p>
<p> </p>
Bubblegum_IHB
New member
NSR,
My thoughts exactly, we were looking at Westborne and Ciara, the "behemoths" McMansions, each of those homes are looking north or $20K in taxes and CFDs each year. I'm sorry, please explain to me what exactly I'm receiving for $9,000 for Special tax A and B? What on earth did they actually do out in Columbus Grove Tustin? Add a streetlight? Call edison to wire some transformers? Orchard Hills, Laguna Crossing, Quail Hill, spent major $$$ having engineers and architects properly assess soil, grading and do th actual leveling of those hills. Plus most of these places had no infrastructure to begin with. Columbus Grove was the old barracks, there already was plumbing, electrical, and anchored by streets Warner, Barranca and Harvard.
What is deceiving is that some of the Homebuilders there were advertising "low 1.1% Tustin property tax" while Ciara had a more accurate "approx" 1.8% property tax.
My thoughts exactly, we were looking at Westborne and Ciara, the "behemoths" McMansions, each of those homes are looking north or $20K in taxes and CFDs each year. I'm sorry, please explain to me what exactly I'm receiving for $9,000 for Special tax A and B? What on earth did they actually do out in Columbus Grove Tustin? Add a streetlight? Call edison to wire some transformers? Orchard Hills, Laguna Crossing, Quail Hill, spent major $$$ having engineers and architects properly assess soil, grading and do th actual leveling of those hills. Plus most of these places had no infrastructure to begin with. Columbus Grove was the old barracks, there already was plumbing, electrical, and anchored by streets Warner, Barranca and Harvard.
What is deceiving is that some of the Homebuilders there were advertising "low 1.1% Tustin property tax" while Ciara had a more accurate "approx" 1.8% property tax.
EvaLSeraphim_IHB
New member
Here are some links about MR Bonds. I can't vouch for these, but thought y'all might find them useful.
<a href="http://www.californiataxdata.com/pdf/Mello-Roos2.pdf">
From Cal Tax Data.</a>
<a href="http://www.city.davis.ca.us/finance/pdf/melloroos/CFD_1990-4_South_Davis_Plan_Area.pdf">Sample information on an issue from the City of Davis.</a>
<a href="http://en.wikipedia.org/wiki/Mello-Roos">From Wikipedia</a> (this is hilarious - "Many builders in the housing boom of 2001-2007 realize the extra fees turn off potential buyers and cleverly hide the true costs of ownership by calculating Mello-Roos as a percentage of property tax or other clever explanations.")
<a href="http://www.fidelitytitle.net/fastfacts/NewPDF/021_Mello-Roos.pdf">From Fidelity Title.</a>
<a href="http://www.ocregister.com/ocregister/news/local/communities/rsm/article_1555518.php">RSM does an audit.</a>
<a href="http://www.californiataxdata.com/pdf/Mello-Roos2.pdf">
From Cal Tax Data.</a>
<a href="http://www.city.davis.ca.us/finance/pdf/melloroos/CFD_1990-4_South_Davis_Plan_Area.pdf">Sample information on an issue from the City of Davis.</a>
<a href="http://en.wikipedia.org/wiki/Mello-Roos">From Wikipedia</a> (this is hilarious - "Many builders in the housing boom of 2001-2007 realize the extra fees turn off potential buyers and cleverly hide the true costs of ownership by calculating Mello-Roos as a percentage of property tax or other clever explanations.")
<a href="http://www.fidelitytitle.net/fastfacts/NewPDF/021_Mello-Roos.pdf">From Fidelity Title.</a>
<a href="http://www.ocregister.com/ocregister/news/local/communities/rsm/article_1555518.php">RSM does an audit.</a>
graphrix_IHB
New member
<p><em>"Not only that, but A + B increases 2% every July."</em></p>
<p>Holy mother of tax sin. That is bleeping ridiculous! It is capped at 2% but can be what the CPI is. Great so even though incomes haven't increased with CPI let alone 2% your property taxes can exceed your income growth. Well keep checking the foreclosure thread after July because you could see these people who didn't catch this in there. This is just wrong.</p>
<p>Holy mother of tax sin. That is bleeping ridiculous! It is capped at 2% but can be what the CPI is. Great so even though incomes haven't increased with CPI let alone 2% your property taxes can exceed your income growth. Well keep checking the foreclosure thread after July because you could see these people who didn't catch this in there. This is just wrong.</p>
trrenter_IHB
New member
<p>Well at least now I have a better idea of what i want to buy.</p>
<p>A SFR with no mello roos. </p>
<p>I went to one of the new builds and between hoa and mr's it was over 1k. Neither one being a locked in number and the MR were for 30 years and the association is forever. I read that most HOA's go up for the first 2-5 years then stay pretty stable but still.</p>
<p>To put that into perspective you can add another 155k to your loan and break even. So instead of buying a 400k condo with HOA and Mello roos you can buy a 555k SFR. </p>
<p>You will have to mow your own lawn and paint your own home but I can live with that. Heck you know what I can paint my SFR any color I want like pink and purple what would the HOA think of that.</p>
<p>A SFR with no mello roos. </p>
<p>I went to one of the new builds and between hoa and mr's it was over 1k. Neither one being a locked in number and the MR were for 30 years and the association is forever. I read that most HOA's go up for the first 2-5 years then stay pretty stable but still.</p>
<p>To put that into perspective you can add another 155k to your loan and break even. So instead of buying a 400k condo with HOA and Mello roos you can buy a 555k SFR. </p>
<p>You will have to mow your own lawn and paint your own home but I can live with that. Heck you know what I can paint my SFR any color I want like pink and purple what would the HOA think of that.</p>
No_Such_Reality_IHB
New member
<p><em>I read that most HOA's go up for the first 2-5 years then stay pretty stable but still.</em></p>
<p>They go up at first to get to even on regular run numbers. Then after a 5 year lull, start going up again when the boards realize they haven't been funding reserves properly for the last 10 years and the first of the long term reserve expenses start to hit.</p>
<p>They go up at first to get to even on regular run numbers. Then after a 5 year lull, start going up again when the boards realize they haven't been funding reserves properly for the last 10 years and the first of the long term reserve expenses start to hit.</p>