[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.

[temeculaguy]

There are so many factors in play, most predictions are guesses. I’ll dance with the one that brung me. Roubini and Schiff convinced me to wait out a home purchase, I owe them a few hundred grand as of now for their advice. What I won’t bite on is all the doomsdayers without the reality check gene. study the crap out of your micro market and avoid national numbers and anectodotal stories. target 2001 prices and that’s about it, they were fundamentally sound then, houses will not be free they will not fall another 50%, they will total 50% from peak but ignore the noise, get realistic and be prepared to pay actual money for a house, they won’t cost ten dollars, they will get close to rent nuetral but not much better. This is part of a cycle, it’s not the end of the world, prepare to take advantage of the cycle.

I concur with peter a little , 1 to 2 more years (at least one, 2009 is a throw away year) but don’t discount the psychological impact of a charismatic president, politics aside, just figure out how to prepare for it. Both clinton and reagan were charismatic leaders, obama is as well, weather you like him or not. Both clinton and reagan had a couple bumpy years to start after inheriting a bad economy and both had it turn around on their watch, same will happen here, 2 years and the ship turns around, prepare for it, hedge your bets.

Or you can get a foil hat, think milk will cost $100 a gallon and houses will cost $100, nobody will have a job, blah blah blah. Don’t drink bubble koolaid and dont drink doomsday koolaid, find the middle drink diet coke, it kills you slow and still tastes good.

[temeculaguy]

There are so many factors in play, most predictions are guesses. I’ll dance with the one that brung me. Roubini and Schiff convinced me to wait out a home purchase, I owe them a few hundred grand as of now for their advice. What I won’t bite on is all the doomsdayers without the reality check gene. study the crap out of your micro market and avoid national numbers and anectodotal stories. target 2001 prices and that’s about it, they were fundamentally sound then, houses will not be free they will not fall another 50%, they will total 50% from peak but ignore the noise, get realistic and be prepared to pay actual money for a house, they won’t cost ten dollars, they will get close to rent nuetral but not much better. This is part of a cycle, it’s not the end of the world, prepare to take advantage of the cycle.

I concur with peter a little , 1 to 2 more years (at least one, 2009 is a throw away year) but don’t discount the psychological impact of a charismatic president, politics aside, just figure out how to prepare for it. Both clinton and reagan were charismatic leaders, obama is as well, weather you like him or not. Both clinton and reagan had a couple bumpy years to start after inheriting a bad economy and both had it turn around on their watch, same will happen here, 2 years and the ship turns around, prepare for it, hedge your bets.

Or you can get a foil hat, think milk will cost $100 a gallon and houses will cost $100, nobody will have a job, blah blah blah. Don’t drink bubble koolaid and dont drink doomsday koolaid, find the middle drink diet coke, it kills you slow and still tastes good.

[temeculaguy]

There are so many factors in play, most predictions are guesses. I’ll dance with the one that brung me. Roubini and Schiff convinced me to wait out a home purchase, I owe them a few hundred grand as of now for their advice. What I won’t bite on is all the doomsdayers without the reality check gene. study the crap out of your micro market and avoid national numbers and anectodotal stories. target 2001 prices and that’s about it, they were fundamentally sound then, houses will not be free they will not fall another 50%, they will total 50% from peak but ignore the noise, get realistic and be prepared to pay actual money for a house, they won’t cost ten dollars, they will get close to rent nuetral but not much better. This is part of a cycle, it’s not the end of the world, prepare to take advantage of the cycle.

I concur with peter a little , 1 to 2 more years (at least one, 2009 is a throw away year) but don’t discount the psychological impact of a charismatic president, politics aside, just figure out how to prepare for it. Both clinton and reagan were charismatic leaders, obama is as well, weather you like him or not. Both clinton and reagan had a couple bumpy years to start after inheriting a bad economy and both had it turn around on their watch, same will happen here, 2 years and the ship turns around, prepare for it, hedge your bets.

Or you can get a foil hat, think milk will cost $100 a gallon and houses will cost $100, nobody will have a job, blah blah blah. Don’t drink bubble koolaid and dont drink doomsday koolaid, find the middle drink diet coke, it kills you slow and still tastes good.

[temeculaguy]

There are so many factors in play, most predictions are guesses. I’ll dance with the one that brung me. Roubini and Schiff convinced me to wait out a home purchase, I owe them a few hundred grand as of now for their advice. What I won’t bite on is all the doomsdayers without the reality check gene. study the crap out of your micro market and avoid national numbers and anectodotal stories. target 2001 prices and that’s about it, they were fundamentally sound then, houses will not be free they will not fall another 50%, they will total 50% from peak but ignore the noise, get realistic and be prepared to pay actual money for a house, they won’t cost ten dollars, they will get close to rent nuetral but not much better. This is part of a cycle, it’s not the end of the world, prepare to take advantage of the cycle.

I concur with peter a little , 1 to 2 more years (at least one, 2009 is a throw away year) but don’t discount the psychological impact of a charismatic president, politics aside, just figure out how to prepare for it. Both clinton and reagan were charismatic leaders, obama is as well, weather you like him or not. Both clinton and reagan had a couple bumpy years to start after inheriting a bad economy and both had it turn around on their watch, same will happen here, 2 years and the ship turns around, prepare for it, hedge your bets.

Or you can get a foil hat, think milk will cost $100 a gallon and houses will cost $100, nobody will have a job, blah blah blah. Don’t drink bubble koolaid and dont drink doomsday koolaid, find the middle drink diet coke, it kills you slow and still tastes good.

[temeculaguy]

There are so many factors in play, most predictions are guesses. I’ll dance with the one that brung me. Roubini and Schiff convinced me to wait out a home purchase, I owe them a few hundred grand as of now for their advice. What I won’t bite on is all the doomsdayers without the reality check gene. study the crap out of your micro market and avoid national numbers and anectodotal stories. target 2001 prices and that’s about it, they were fundamentally sound then, houses will not be free they will not fall another 50%, they will total 50% from peak but ignore the noise, get realistic and be prepared to pay actual money for a house, they won’t cost ten dollars, they will get close to rent nuetral but not much better. This is part of a cycle, it’s not the end of the world, prepare to take advantage of the cycle.

I concur with peter a little , 1 to 2 more years (at least one, 2009 is a throw away year) but don’t discount the psychological impact of a charismatic president, politics aside, just figure out how to prepare for it. Both clinton and reagan were charismatic leaders, obama is as well, weather you like him or not. Both clinton and reagan had a couple bumpy years to start after inheriting a bad economy and both had it turn around on their watch, same will happen here, 2 years and the ship turns around, prepare for it, hedge your bets.

Or you can get a foil hat, think milk will cost $100 a gallon and houses will cost $100, nobody will have a job, blah blah blah. Don’t drink bubble koolaid and dont drink doomsday koolaid, find the middle drink diet coke, it kills you slow and still tastes good.

[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.

[temeculaguy]

sd, I applaud your business model and think you may be on to something big. The internet has allowed buyers to refine their search and many question the need for a full service buyers agent that drives them around, sprinkle in the knuckleheads that crowded your profession and it makes the discerning buyer want to go it alone (which is a bad idea in 90% of the scenarios). I know that i have at least a dozen loyal lurker readers and i’d encourage them to contact you or other longtime piggie realtors who have proven their knowledge over the years. Most piggies should have their deals negotiated for them by someone like yourself and you should be compensated for that service. The service some people require doesn’t fall into the old model and it will be guys like you that end up with the mai tais because you can see it before the rest.

[Author]

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