Mello Roos Fees Question

[vizcaya]

I have a buddy that is looking at a home that originally sold for $500k, now its $250k. The Tax rate is 1.05% . The home is newer, and does have Mello Roos.

My question is , since the home has dropped 50%, does the Mello roos also fall 50%? I know the Property tax gets reassesed to the new purchase price, but not sure about the Mello Roos.

According to Zillow, this is the info:

Sold New for $505k
Taxes the next year was $8319

My Estimation is that the Property Tax portion (back then)of the bill is about $5,500 , and that leaves a Mello roos tax of 2,819.

Thanks for any info.

[temeculaguy]

mello roos usually isn’t value based, so there is a set fee per year per house. Depending what county the house is in, you may be able to look at the itemized tax bill online, then run neighboring properties to confirm that line items are the same regardless of purchase price.

In riverside county you can look at anyone’s tax bill online, see if it is current and see each line item and it lits a phone number for each so you may inquire directly. Mello roos is a broad term, some of the fixed taxes may not be exactly mello roos, some are voter passed bonds, some are community service districts that can actually go up a little each year. I just looked at the fixed taxes for my new purchase and figured out when each would drop off and which ones never drop off and which ones have the possibility to rise or fall. Developments where the builder goes under have the possibility of having bond payments rise since the total debt is divided amongst lots, if the builder stops subsidizing the vacant lots and new homes aren;t built, the existing owners have to pay more to satisfy the bond. More specifics and I can probably help, but the answer is you are right, his taxes will not be halved, he will pay about 5500 a year for a 250k property, thus making his effective tax rate rise to over 2%. just multiply the diference from the previous sale to his by 1.05 and subtract from the previous bill, that will be close enough.

[temeculaguy]

mello roos usually isn’t value based, so there is a set fee per year per house. Depending what county the house is in, you may be able to look at the itemized tax bill online, then run neighboring properties to confirm that line items are the same regardless of purchase price.

In riverside county you can look at anyone’s tax bill online, see if it is current and see each line item and it lits a phone number for each so you may inquire directly. Mello roos is a broad term, some of the fixed taxes may not be exactly mello roos, some are voter passed bonds, some are community service districts that can actually go up a little each year. I just looked at the fixed taxes for my new purchase and figured out when each would drop off and which ones never drop off and which ones have the possibility to rise or fall. Developments where the builder goes under have the possibility of having bond payments rise since the total debt is divided amongst lots, if the builder stops subsidizing the vacant lots and new homes aren;t built, the existing owners have to pay more to satisfy the bond. More specifics and I can probably help, but the answer is you are right, his taxes will not be halved, he will pay about 5500 a year for a 250k property, thus making his effective tax rate rise to over 2%. just multiply the diference from the previous sale to his by 1.05 and subtract from the previous bill, that will be close enough.

[temeculaguy]

mello roos usually isn’t value based, so there is a set fee per year per house. Depending what county the house is in, you may be able to look at the itemized tax bill online, then run neighboring properties to confirm that line items are the same regardless of purchase price.

In riverside county you can look at anyone’s tax bill online, see if it is current and see each line item and it lits a phone number for each so you may inquire directly. Mello roos is a broad term, some of the fixed taxes may not be exactly mello roos, some are voter passed bonds, some are community service districts that can actually go up a little each year. I just looked at the fixed taxes for my new purchase and figured out when each would drop off and which ones never drop off and which ones have the possibility to rise or fall. Developments where the builder goes under have the possibility of having bond payments rise since the total debt is divided amongst lots, if the builder stops subsidizing the vacant lots and new homes aren;t built, the existing owners have to pay more to satisfy the bond. More specifics and I can probably help, but the answer is you are right, his taxes will not be halved, he will pay about 5500 a year for a 250k property, thus making his effective tax rate rise to over 2%. just multiply the diference from the previous sale to his by 1.05 and subtract from the previous bill, that will be close enough.

[temeculaguy]

mello roos usually isn’t value based, so there is a set fee per year per house. Depending what county the house is in, you may be able to look at the itemized tax bill online, then run neighboring properties to confirm that line items are the same regardless of purchase price.

In riverside county you can look at anyone’s tax bill online, see if it is current and see each line item and it lits a phone number for each so you may inquire directly. Mello roos is a broad term, some of the fixed taxes may not be exactly mello roos, some are voter passed bonds, some are community service districts that can actually go up a little each year. I just looked at the fixed taxes for my new purchase and figured out when each would drop off and which ones never drop off and which ones have the possibility to rise or fall. Developments where the builder goes under have the possibility of having bond payments rise since the total debt is divided amongst lots, if the builder stops subsidizing the vacant lots and new homes aren;t built, the existing owners have to pay more to satisfy the bond. More specifics and I can probably help, but the answer is you are right, his taxes will not be halved, he will pay about 5500 a year for a 250k property, thus making his effective tax rate rise to over 2%. just multiply the diference from the previous sale to his by 1.05 and subtract from the previous bill, that will be close enough.

[temeculaguy]

mello roos usually isn’t value based, so there is a set fee per year per house. Depending what county the house is in, you may be able to look at the itemized tax bill online, then run neighboring properties to confirm that line items are the same regardless of purchase price.

In riverside county you can look at anyone’s tax bill online, see if it is current and see each line item and it lits a phone number for each so you may inquire directly. Mello roos is a broad term, some of the fixed taxes may not be exactly mello roos, some are voter passed bonds, some are community service districts that can actually go up a little each year. I just looked at the fixed taxes for my new purchase and figured out when each would drop off and which ones never drop off and which ones have the possibility to rise or fall. Developments where the builder goes under have the possibility of having bond payments rise since the total debt is divided amongst lots, if the builder stops subsidizing the vacant lots and new homes aren;t built, the existing owners have to pay more to satisfy the bond. More specifics and I can probably help, but the answer is you are right, his taxes will not be halved, he will pay about 5500 a year for a 250k property, thus making his effective tax rate rise to over 2%. just multiply the diference from the previous sale to his by 1.05 and subtract from the previous bill, that will be close enough.

[vizcaya]

Thanks for the info, Its another reason these newer homes are falling faster than the older homes in this area.

[vizcaya]

Thanks for the info, Its another reason these newer homes are falling faster than the older homes in this area.

[vizcaya]

Thanks for the info, Its another reason these newer homes are falling faster than the older homes in this area.

[vizcaya]

Thanks for the info, Its another reason these newer homes are falling faster than the older homes in this area.

[vizcaya]

Thanks for the info, Its another reason these newer homes are falling faster than the older homes in this area.

[temeculaguy]

that’s because buyers are pricing in the taxes, people buy on payment as much as price, I did. I’m gonna pay hefty mello roos (once again not all are mello roos, some are cfd, some infrastructure bond service, some landscape maintenance, some trash service, some voter approved school crap, but it’s the same thing effectively, fixed taxes above the 1%). My tab was 1k a year fixed fees higher than the other development I was considering and $100 a month is about 17k in price differential. If I pay 17k less for the house than in the neighboring development, then it’s a wash in my monthly payment. He could pay 100k more and have pure 1% taxes but it would actually cost him more monthly, so the market finds it’s equilibrium. If his choice is to pay 250k and have 3k in mello roos or 350k and no mello roos, then take the taxes, if prices are equal, go with the lower taxes, point is, don’t get hung up on the taxes, look at the bottom line, what is the “true cost” it’s just math, it’s not subjective.

[temeculaguy]

that’s because buyers are pricing in the taxes, people buy on payment as much as price, I did. I’m gonna pay hefty mello roos (once again not all are mello roos, some are cfd, some infrastructure bond service, some landscape maintenance, some trash service, some voter approved school crap, but it’s the same thing effectively, fixed taxes above the 1%). My tab was 1k a year fixed fees higher than the other development I was considering and $100 a month is about 17k in price differential. If I pay 17k less for the house than in the neighboring development, then it’s a wash in my monthly payment. He could pay 100k more and have pure 1% taxes but it would actually cost him more monthly, so the market finds it’s equilibrium. If his choice is to pay 250k and have 3k in mello roos or 350k and no mello roos, then take the taxes, if prices are equal, go with the lower taxes, point is, don’t get hung up on the taxes, look at the bottom line, what is the “true cost” it’s just math, it’s not subjective.

[temeculaguy]

that’s because buyers are pricing in the taxes, people buy on payment as much as price, I did. I’m gonna pay hefty mello roos (once again not all are mello roos, some are cfd, some infrastructure bond service, some landscape maintenance, some trash service, some voter approved school crap, but it’s the same thing effectively, fixed taxes above the 1%). My tab was 1k a year fixed fees higher than the other development I was considering and $100 a month is about 17k in price differential. If I pay 17k less for the house than in the neighboring development, then it’s a wash in my monthly payment. He could pay 100k more and have pure 1% taxes but it would actually cost him more monthly, so the market finds it’s equilibrium. If his choice is to pay 250k and have 3k in mello roos or 350k and no mello roos, then take the taxes, if prices are equal, go with the lower taxes, point is, don’t get hung up on the taxes, look at the bottom line, what is the “true cost” it’s just math, it’s not subjective.

[temeculaguy]

that’s because buyers are pricing in the taxes, people buy on payment as much as price, I did. I’m gonna pay hefty mello roos (once again not all are mello roos, some are cfd, some infrastructure bond service, some landscape maintenance, some trash service, some voter approved school crap, but it’s the same thing effectively, fixed taxes above the 1%). My tab was 1k a year fixed fees higher than the other development I was considering and $100 a month is about 17k in price differential. If I pay 17k less for the house than in the neighboring development, then it’s a wash in my monthly payment. He could pay 100k more and have pure 1% taxes but it would actually cost him more monthly, so the market finds it’s equilibrium. If his choice is to pay 250k and have 3k in mello roos or 350k and no mello roos, then take the taxes, if prices are equal, go with the lower taxes, point is, don’t get hung up on the taxes, look at the bottom line, what is the “true cost” it’s just math, it’s not subjective.

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