Justifying Woodbury La Casella

E

edhne

New member
If one includes the HOA and Mello Roo tax, the total comes out to about 800 dollars a month. The present value of that at todays prevailing interest rate of 4.875% is almost 196K. So these 1600 SQFT townhomes are priced at about +800k.

Worse yet, when you think about the after tax cost of ownership (assuming marginal 45% tax bracket range), it is equal after tax payment to buying a 830K SFR in Turtle Rock.

I am trying to justify it in my own mind and was wondering how other buyers did the math?

Reasoning i could think of:
1) if the tax bracket were lower, the after tax payments would be different. (but for my assumptions, it is what is what is)
2) Prefer WB so much over TR that I would pay equal amounts for a townhouse vs SFR. (ie great amenities, new home vs 1970's built home)

Just curious to hear how others did the calculations to come up with their decision.

Thanks for sharing.
 
Similar situation exists for Santa Barbara. Trying to compare the two:

Base         Monthly         HOA Property Tax Ptax Total Per Month
-650000 $3,489.34 $114.00 1.20% $650.00 $4,253.35
-550000 $2,952.52 $288.00 1.90% $870.83 $4,111.37

 
edhne said:
If one includes the HOA and Mello Roo tax, the total comes out to about 800 dollars a month. The present value of that at todays prevailing interest rate of 4.875% is almost 196K. So these 1600 SQFT townhomes are priced at about +800k.

Worse yet, when you think about the after tax cost of ownership (assuming marginal 45% tax bracket range), it is equal after tax payment to buying a 830K SFR in Turtle Rock.

I am trying to justify it in my own mind and was wondering how other buyers did the math?

Reasoning i could think of:
1) if the tax bracket were lower, the after tax payments would be different. (but for my assumptions, it is what is what is)
2) Prefer WB so much over TR that I would pay equal amounts for a townhouse vs SFR. (ie great amenities, new home vs 1970's built home)

Just curious to hear how others did the calculations to come up with their decision.

Thanks for sharing.
Click to expand...

Good to see someone actually looking at the numbers and not just the shiny new paint. From what I have read most of the people who have purchased in WB just like the shiny new paint
 
Get yourself a big spreadsheet and start filling it out.
Don't forget to include insurance, maintenance, utility, etc.  Also, allow a little more money put aside every month for older home for increased repairs and maintenance.  Also, include some upgrade money for an older house if you are going to remodel and upgrades for a new house for builder upgrades and landscaping, window covering, etc.


From there, it's you and only you (and the significant other, if there is any) can make the decision. 
 
irvinefanboy said:
Liked the plan 3 (2700 square feet), did the calculations and decided that having no driveway sucked.
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I, too, did not want to buy a house without a drive way.  Didn't feel like looking for a parking spot after a long day at work as I can only fit one car in the garage due to bikes and other stuff.  The driveway did cost me over $100K since I had to go buy a SFR to get a driveway.  I guess some of the decision WILL be emotional ones.
 
Irvine2Irvine said:
I, too, did not want to buy a house without a drive way.  Didn't feel like looking for a parking spot after a long day at work as I can only fit one car in the garage due to bikes and other stuff.  The driveway did cost me over $100K since I had to go buy a SFR to get a driveway.  I guess some of the decision WILL be emotional ones.
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Street parking is for guests only.  Residents are not allowed to use garage for storage space.  Glad you don't live in my neighborhood.

 
test said:
Irvine2Irvine said:
I, too, did not want to buy a house without a drive way.  Didn't feel like looking for a parking spot after a long day at work as I can only fit one car in the garage due to bikes and other stuff.  The driveway did cost me over $100K since I had to go buy a SFR to get a driveway.  I guess some of the decision WILL be emotional ones.
Click to expand...

Street parking is for guests only.  Residents are not allowed to use garage for storage space.  Glad you don't live in my neighborhood.
Click to expand...

Haha...what a joke. Do the HOAs in WB really enforce this rule of no storage in the garages?

If HOAs and builders were really serious about enforcing no storage in garages, then they would build garage doors like this:




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iacrenter said:
test said:
Irvine2Irvine said:
I, too, did not want to buy a house without a drive way.  Didn't feel like looking for a parking spot after a long day at work as I can only fit one car in the garage due to bikes and other stuff.  The driveway did cost me over $100K since I had to go buy a SFR to get a driveway.  I guess some of the decision WILL be emotional ones.
Click to expand...

Street parking is for guests only.  Residents are not allowed to use garage for storage space.  Glad you don't live in my neighborhood.
Click to expand...

Haha...what a joke. Do the HOAs in WB really enforce this rule of no storage in the garages?

If HOAs and builders were really serious about enforcing no storage in garages, then they would build garage doors like this:
Click to expand...

I agree that it is almost impossible or impractical to enforce 2 cars in a 2 car garage rule.
 
Irvine2Irvine said:
iacrenter said:
Haha...what a joke. Do the HOAs in WB really enforce this rule of no storage in the garages?

If HOAs and builders were really serious about enforcing no storage in garages, then they would build garage doors like this:
Click to expand...

I agree that it is almost impossible or impractical to enforce 2 cars in a 2 car garage rule.
Click to expand...

How about self-enforcement?  Or do you always do whatever you can to serve your own self interests?

 
What if you only own one car... you have to leave the other area open?

It's not always about self-enforcement... it's also about personal lifestyle and necessities.
 
That doesn't answer my question. If I have only one car, does the HOA disallow me from using the other side for storage?

Maybe I should rent it out to people who park on the street?
 
I got an idea that would solve the problem...how about TIC stop packing in more and more units per acre so that there is plenty of parking to go around?  ::)
 
USCTrojanCPA said:
I got an idea that would solve the problem...how about TIC stop packing in more and more units per acre so that there is plenty of parking to go around?  ::)
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That's crazy talk.

Why cut into their profit when they can just use an HOA rule that has the potential to cause dissension between neighbors?
 
irvinehomeowner said:
That doesn't answer my question. If I have only one car, does the HOA disallow me from using the other side for storage?
Click to expand...

Why are you asking on here, go read the HOA rules.  If you only have one car then you don't have to.

The point isn't about the garage.  It's about parking your car on the street.  If everyone did this Irvine would be like a third world country or Santa Ana.

 
Hehe... relax test.

You should be the president of an HOA if you already aren't.

Are you saying Santa Ana is like a third world country?
 
Well, Santa Ana really has problem with multiple families in a single house.
I guess Irvine has problem with homeowners parking on the street instead of the garage.  Of course if you buy a SFR, then you can park on the driveway, but that adds $100K+ to the house price like it did for me.

Maybe we should adapt the parking rule like the City of Cerritos.  No overnight parking on the street, even residential street, or get parking tickets.  Actually, I would not mind that as it makes the neighborhood looking really good.  However, Irvine would never go for that.  It would cost TIC way too much money as they cannot continue to develop the high density projects like they are doing now.
 
The entire 2010 collection baring few sold out . Santa barbara almost gone. New developments are coming up. Is there a specific reason
La casella is still not sold out. How many units did they have and how many have they sold. Any one have more updates on this tract.
 
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