If California is so worried about Real Estate then why don’t they

[temeculaguy]

Mello Roos or assessments aren’t the fault of the local government, it is the builder tricking you. Two developments, side by side. Developer A pays for the streets, sidewalks, landscaping and parks, then builds that into the price. Developer B decides to finance all that stuff and have the buyers pay off the loan in a mello roos bond but then can advertise a lower price or have larger profits. So if you paid more for your house in devlopment A to not have mello roos, if there is a baolout for those with mello roos then it is exactly the same as bailing out the subprimes, helping those who made bad choices and punishing those who were prudent. Mello Roos are not demanded by the government, it’s the developer that chooses to set it up, they are more than allowed to pay cash for the infrastructure, they just choose not to sometimes. Personally I’ve owned a number of new homes and have never had one with mello roos, it can be done, it just costs a little more.

[lendingbubblecontinues]

the whole point is: don’t buy a house that has mello roos

shame on any buyer who doesn’t force the builder to eat the costs of improvements/infrastructure/new schools, etc.

oh, and if the market is so hot that the builder would laugh at you for suggesting that he pay his own costs for these things….ding, ding, ding: the market is overheated and you should not buy…nothing left to discuss on this one

[lendingbubblecontinues]

the whole point is: don’t buy a house that has mello roos

shame on any buyer who doesn’t force the builder to eat the costs of improvements/infrastructure/new schools, etc.

oh, and if the market is so hot that the builder would laugh at you for suggesting that he pay his own costs for these things….ding, ding, ding: the market is overheated and you should not buy…nothing left to discuss on this one

[lendingbubblecontinues]

the whole point is: don’t buy a house that has mello roos

shame on any buyer who doesn’t force the builder to eat the costs of improvements/infrastructure/new schools, etc.

oh, and if the market is so hot that the builder would laugh at you for suggesting that he pay his own costs for these things….ding, ding, ding: the market is overheated and you should not buy…nothing left to discuss on this one

[lendingbubblecontinues]

the whole point is: don’t buy a house that has mello roos

shame on any buyer who doesn’t force the builder to eat the costs of improvements/infrastructure/new schools, etc.

oh, and if the market is so hot that the builder would laugh at you for suggesting that he pay his own costs for these things….ding, ding, ding: the market is overheated and you should not buy…nothing left to discuss on this one

[lendingbubblecontinues]

the whole point is: don’t buy a house that has mello roos

shame on any buyer who doesn’t force the builder to eat the costs of improvements/infrastructure/new schools, etc.

oh, and if the market is so hot that the builder would laugh at you for suggesting that he pay his own costs for these things….ding, ding, ding: the market is overheated and you should not buy…nothing left to discuss on this one

[patientlywaiting]

I agree, if people plain refused to buy in Mello Roos neighborhoods, developers will either have to pay for it themselves or come up with other plans.

In a rising market where people think they can flip their way up the property ladder, all caution is out the window.

In a normally rising market of 2%-4% per year, buyers have to be more careful.

Even with today’s slump, people are thinking that prices will double again in 10 years. That mentality won’t disappear until we have at least a 5-year slump.

[patientlywaiting]

I agree, if people plain refused to buy in Mello Roos neighborhoods, developers will either have to pay for it themselves or come up with other plans.

In a rising market where people think they can flip their way up the property ladder, all caution is out the window.

In a normally rising market of 2%-4% per year, buyers have to be more careful.

Even with today’s slump, people are thinking that prices will double again in 10 years. That mentality won’t disappear until we have at least a 5-year slump.

[patientlywaiting]

I agree, if people plain refused to buy in Mello Roos neighborhoods, developers will either have to pay for it themselves or come up with other plans.

In a rising market where people think they can flip their way up the property ladder, all caution is out the window.

In a normally rising market of 2%-4% per year, buyers have to be more careful.

Even with today’s slump, people are thinking that prices will double again in 10 years. That mentality won’t disappear until we have at least a 5-year slump.

[patientlywaiting]

I agree, if people plain refused to buy in Mello Roos neighborhoods, developers will either have to pay for it themselves or come up with other plans.

In a rising market where people think they can flip their way up the property ladder, all caution is out the window.

In a normally rising market of 2%-4% per year, buyers have to be more careful.

Even with today’s slump, people are thinking that prices will double again in 10 years. That mentality won’t disappear until we have at least a 5-year slump.

[patientlywaiting]

I agree, if people plain refused to buy in Mello Roos neighborhoods, developers will either have to pay for it themselves or come up with other plans.

In a rising market where people think they can flip their way up the property ladder, all caution is out the window.

In a normally rising market of 2%-4% per year, buyers have to be more careful.

Even with today’s slump, people are thinking that prices will double again in 10 years. That mentality won’t disappear until we have at least a 5-year slump.

[Trojan4Life]

In regards to buying a home that doesn’t have a mello roos, I know that I’ve had that mindset as well. When you look at pricing, particularly in 4B$ ranch, those homes are typically priced HIGHER than comperable homes in RB without MR, which is mindless. Ones purchasing power is increased significantly by seeking the non-MR home.

Example
16683 Deer Ridge Rd San Diego CA 92127 is or sale for $619K (good luck with that, BTW). A $619K home in 4S brings a carrying cost of (assuming 20% down) @$3200 PI, and you’re looking at 2% for taxes (@$1K per month). So, minus insurance we’re trying to swing a $4,200 mortgage note (fixed).

You can damn near spend an extra $130K on a non-MR home and have the same fixed costs. Not to mention a little bit larger tax deduction as well.

Let me see…which way would I go???

[Trojan4Life]

In regards to buying a home that doesn’t have a mello roos, I know that I’ve had that mindset as well. When you look at pricing, particularly in 4B$ ranch, those homes are typically priced HIGHER than comperable homes in RB without MR, which is mindless. Ones purchasing power is increased significantly by seeking the non-MR home.

Example
16683 Deer Ridge Rd San Diego CA 92127 is or sale for $619K (good luck with that, BTW). A $619K home in 4S brings a carrying cost of (assuming 20% down) @$3200 PI, and you’re looking at 2% for taxes (@$1K per month). So, minus insurance we’re trying to swing a $4,200 mortgage note (fixed).

You can damn near spend an extra $130K on a non-MR home and have the same fixed costs. Not to mention a little bit larger tax deduction as well.

Let me see…which way would I go???

[Trojan4Life]

In regards to buying a home that doesn’t have a mello roos, I know that I’ve had that mindset as well. When you look at pricing, particularly in 4B$ ranch, those homes are typically priced HIGHER than comperable homes in RB without MR, which is mindless. Ones purchasing power is increased significantly by seeking the non-MR home.

Example
16683 Deer Ridge Rd San Diego CA 92127 is or sale for $619K (good luck with that, BTW). A $619K home in 4S brings a carrying cost of (assuming 20% down) @$3200 PI, and you’re looking at 2% for taxes (@$1K per month). So, minus insurance we’re trying to swing a $4,200 mortgage note (fixed).

You can damn near spend an extra $130K on a non-MR home and have the same fixed costs. Not to mention a little bit larger tax deduction as well.

Let me see…which way would I go???

[Trojan4Life]

In regards to buying a home that doesn’t have a mello roos, I know that I’ve had that mindset as well. When you look at pricing, particularly in 4B$ ranch, those homes are typically priced HIGHER than comperable homes in RB without MR, which is mindless. Ones purchasing power is increased significantly by seeking the non-MR home.

Example
16683 Deer Ridge Rd San Diego CA 92127 is or sale for $619K (good luck with that, BTW). A $619K home in 4S brings a carrying cost of (assuming 20% down) @$3200 PI, and you’re looking at 2% for taxes (@$1K per month). So, minus insurance we’re trying to swing a $4,200 mortgage note (fixed).

You can damn near spend an extra $130K on a non-MR home and have the same fixed costs. Not to mention a little bit larger tax deduction as well.

Let me see…which way would I go???

[Author]

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