[quote=sdduuuude][quote=sdrealtor]I think you need to re-read what he wrote and check your math. He wrote maybe $10,000 to $20,000 more for paid off MR on a house with $5400 annual MR (payoff = $58,000). And I think thats a fairly big maybe. His opinion is very much in line with mine that paying them off wont get you close to a dollar for dollar return. A 2 to 4X the annual MR payment seems like a reasonable boost in value for paid off MR but I wouldnt expect more. Paying them off could be a wise choice if you stay long term but most likely wouldnt if you wanted to boost resale value only.[/quote]

Doesn’t this scream “whatever you do, don’t buy a house with MR ” ??

I mean, if by paying them off early you get out from under a 9% loan, but it doesn’t increase the value of the house by the same amount, then buying into a place with MR is just dumb.

Just a trick the developers pull because people aren’t making rational decisions.

Maybe the good realtors will start a trend of putting in buy offers that include a requirement that, as a part of escrow, the MR tax is paid off. Then, you can get clear comparisons between houses with different MR. i.e. offer 800K for a house with $40K in MR, or $840K for a house without it. Either way, you offer $840K with any and all MR paid off.[/quote]

Heres the thing, the difference between a house with no MR and a comparable with MR would not be $840k vs $800k. Similar sized and upgraded and updated homes in established neighborhoods without MR are often times $100-150k above newer homes in MR communities. This differential of course is because of not just lack of MR, but also because of higher % of distress. In these situations, the MR payoff would be fraction of that price difference. Knowing that one can pay off the MR should open people up to buy in MR communities, not stay away from it. Insistence on steering clear from MR with complete disregard to the premium you would have to pay otherwise simply close you off from potential opportunities.