[quote=sdcellar]My contention is that they almost certainly would have sold for higher prices.
I should also take this opportunity to correct myself and acknowledge that the one other thing that will negate the impact of significant M-R taxes is time itself. In twenty years or so, they should be paid off and become a non-factor (and this may well occur more quickly than inflation will numb the hit).
I’ve heard anecdotally that the M-R assessments can be extended, but I have no idea how often it occurs to any meaningful extent.
A buyer today would still be wise to not overrate such long-term effects, however. That is, be careful not to put too much stock into the 30-year (or 20-) argument as many homeowners never get there. If instead, it’s honestly your home to die in, then yes, your kids might not be so affected by your currently (outrageous) Mello-Roos.[/quote]
An example of this thinking in North County.
Even though we don’t like the look and feel (and HOAs and Mello-Roos) of new communities, we try to keep an open mind, especially since what we really want is in very short supply.
We checked out a house today that would suit our family beautifully — good-sized house, big yard for the area, yet we could live in it when we’re old, since we’re buying our “toe-tag” house…AND it was priced very well for what it is. It’s a newer house, so it has the MR and HOA. When we added it all up, the MR, HOA, and property taxes alone would have come to around $900/month. No way we want to deal with a payment like that on a paid-off house when we’re retired.
Like you mentioned, MR **might** be paid off in 20-30 years, but there is no guarantee. I’ve also heard about the possibility that they can extend the MR, so we can’t count on a certain, fixed cost when we’re retired. No way we want to take that risk, especially when retirement plans/pensions are in such a precarious situation as they are today.
So…we decided against the house. I’m sure we’re not the only buyers who worry about MR and HOA fees like this.
