Mello Roos effect on price?

[all]

You rationalize (pretend it is tax-deductible and claim it, it expires, it keeps away those who cannot afford it) and you purchase based on the nominal price.

It can be paid off, but you will not get your money back at resale.

[sdduuuude]

Generally, I think it affects the price of the house, but not the total cost of ownership. You’ll pay less for the house, but more in taxes.

[sdduuuude]

Generally, I think it affects the price of the house, but not the total cost of ownership. You’ll pay less for the house, but more in taxes.

[sdduuuude]

Generally, I think it affects the price of the house, but not the total cost of ownership. You’ll pay less for the house, but more in taxes.

[sdduuuude]

Generally, I think it affects the price of the house, but not the total cost of ownership. You’ll pay less for the house, but more in taxes.

[sdduuuude]

Generally, I think it affects the price of the house, but not the total cost of ownership. You’ll pay less for the house, but more in taxes.

[Anonymous]

We can calculate the cost of Mello Roos or other taxes with a basic present-value finance formula. In theory, the additional cost should reduce the price of the property by the present-value of the future tax payments. In other words, given two identical properties, one with additional tax, the market price of the Mello Roos property should be less by the calculated cost of the tax.

Of course only finance nerds will do this math.

I think most people just ignore this cost, or don’t factor it in at full value. However, for those that look at cost only in terms of total monthly payment, then Mello Roos will indirectly be factored in to their view of the market. So the price of properties will Mello Roos are probably lower, but not by enough to make up the cost.

[Anonymous]

We can calculate the cost of Mello Roos or other taxes with a basic present-value finance formula. In theory, the additional cost should reduce the price of the property by the present-value of the future tax payments. In other words, given two identical properties, one with additional tax, the market price of the Mello Roos property should be less by the calculated cost of the tax.

Of course only finance nerds will do this math.

I think most people just ignore this cost, or don’t factor it in at full value. However, for those that look at cost only in terms of total monthly payment, then Mello Roos will indirectly be factored in to their view of the market. So the price of properties will Mello Roos are probably lower, but not by enough to make up the cost.

[Anonymous]

We can calculate the cost of Mello Roos or other taxes with a basic present-value finance formula. In theory, the additional cost should reduce the price of the property by the present-value of the future tax payments. In other words, given two identical properties, one with additional tax, the market price of the Mello Roos property should be less by the calculated cost of the tax.

Of course only finance nerds will do this math.

I think most people just ignore this cost, or don’t factor it in at full value. However, for those that look at cost only in terms of total monthly payment, then Mello Roos will indirectly be factored in to their view of the market. So the price of properties will Mello Roos are probably lower, but not by enough to make up the cost.

[Anonymous]

We can calculate the cost of Mello Roos or other taxes with a basic present-value finance formula. In theory, the additional cost should reduce the price of the property by the present-value of the future tax payments. In other words, given two identical properties, one with additional tax, the market price of the Mello Roos property should be less by the calculated cost of the tax.

Of course only finance nerds will do this math.

I think most people just ignore this cost, or don’t factor it in at full value. However, for those that look at cost only in terms of total monthly payment, then Mello Roos will indirectly be factored in to their view of the market. So the price of properties will Mello Roos are probably lower, but not by enough to make up the cost.

[Anonymous]

We can calculate the cost of Mello Roos or other taxes with a basic present-value finance formula. In theory, the additional cost should reduce the price of the property by the present-value of the future tax payments. In other words, given two identical properties, one with additional tax, the market price of the Mello Roos property should be less by the calculated cost of the tax.

Of course only finance nerds will do this math.

I think most people just ignore this cost, or don’t factor it in at full value. However, for those that look at cost only in terms of total monthly payment, then Mello Roos will indirectly be factored in to their view of the market. So the price of properties will Mello Roos are probably lower, but not by enough to make up the cost.

[briansd1]

[quote=enron_by_the_sea]Mello Roos goes away after X number of years (in some cases X = 20 years). I believe some of the first Mello Roos Areas (i.e houses built in 1990-1996 period with MR) may be as close as 5 years away from MR expiration. Those might be good deals even though on paper they have MR.[/quote]

I wouldn’t count on Mello Roos going away. They can be extended to maintain the facilities. With local government stressing for money, I’m sure the housewives will want Mello Roos extended to support the facilities for their kids.

I’ll believe it when I see it.

Anyone, please show me an example of Mello Roos expiring.

[briansd1]

[quote=enron_by_the_sea]Mello Roos goes away after X number of years (in some cases X = 20 years). I believe some of the first Mello Roos Areas (i.e houses built in 1990-1996 period with MR) may be as close as 5 years away from MR expiration. Those might be good deals even though on paper they have MR.[/quote]

I wouldn’t count on Mello Roos going away. They can be extended to maintain the facilities. With local government stressing for money, I’m sure the housewives will want Mello Roos extended to support the facilities for their kids.

I’ll believe it when I see it.

Anyone, please show me an example of Mello Roos expiring.

[briansd1]

[quote=enron_by_the_sea]Mello Roos goes away after X number of years (in some cases X = 20 years). I believe some of the first Mello Roos Areas (i.e houses built in 1990-1996 period with MR) may be as close as 5 years away from MR expiration. Those might be good deals even though on paper they have MR.[/quote]

I wouldn’t count on Mello Roos going away. They can be extended to maintain the facilities. With local government stressing for money, I’m sure the housewives will want Mello Roos extended to support the facilities for their kids.

I’ll believe it when I see it.

Anyone, please show me an example of Mello Roos expiring.

[briansd1]

[quote=enron_by_the_sea]Mello Roos goes away after X number of years (in some cases X = 20 years). I believe some of the first Mello Roos Areas (i.e houses built in 1990-1996 period with MR) may be as close as 5 years away from MR expiration. Those might be good deals even though on paper they have MR.[/quote]

I wouldn’t count on Mello Roos going away. They can be extended to maintain the facilities. With local government stressing for money, I’m sure the housewives will want Mello Roos extended to support the facilities for their kids.

I’ll believe it when I see it.

Anyone, please show me an example of Mello Roos expiring.

[Author]

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