“quarter million” is not a particularly useful metric. You are paying a quarter million more today, and you’ll get that quarter million back later when you sell. You need to do the cost-benefit analysis properly.
In favor of 4S:
– interest and property taxes on 240K price difference, less taxes: ~$700/month
In favor of CV:
– Lower Mello-Roos: $300/month
– Lower heating and cooling costs: I’ll guess $100/month
– Lower gasoline expenses: 20 gallons/month = ~$60/month, assuming that the job is somewhere in Sorrento Valley or UTC; times two if it’s a double-income family
– Shorter commute (at least 30 min./day)
– Cooler summers and warmer winters
It seems to me, if your income is high enough that you can comfortably afford CV, there’s no good reason not to pay additional $240/month (or even less) to improve your quality of life.[/quote]
#1, you may not get that difference back. you are looking at 4S at significantly depressed price point when Carmel Valley is still without significant drop. historically the Carmel Valley/RB difference for a similar home was only $100k in CV’s favor prior to the bubble. that price differential will eventually be restored.
#2, CV is cold, in the morning year round, and really not much warmer compared to 4S/RB. so I would question cheaper heating. definately on the cooler summers that’s for sure. I would say at best $50/month in CV’s favor.
#3, 4S is just 7 miles inland, roundtrip we are looking at 14 miles daily if someone works at UTC/serranto valley. 20 work days = 280 miles, say an average car at 25 mpg, that’ works out to 11 extra gallons, or $33 in CV’s favor.
#4, as much as the official word is the mello roos is not deductible, people do deduct it, 33% off the difference.
$700 – $283 = $417
that’s a car payment. and you get to live in a bigger house with a bigger yard.
