32 replies to this topic

[Kirah]

What I am noticing, is the people that are selling their houses are pretty much selling right at the 2 year mark. I think they are taking the money and running. Most of the houses for sale appear to be the smaller houses of the neighborhoods, so I wonder how many of them were investment type purchases???

Hey Mike,

That is what I am noticing too. We are coming up on our 2 year mark and we are sniffing around as well. We were not investors but as you know with rising prices we need to figure out a good way to continue to stream line our debt. I have just done the math and I think between the HOA (which never goes away and seems to increase yearly) and the Mello Roos...over 10 years I think it is around 24k....24 thousand dollars...to live in a community where they tell me how to live my life. Where the security is more like a meter maid and the pretty committee drives by to bother me about every weed or vine that is growing....what could you do with 24k? Buy a car? What could you do with your life without an HOA? Wait I think I am selling myself out of this neighborhood.

[Eeestll]

I am still very happy to have just moved in The Parkway. The HOA can be a little tight sometimes, but all in all, it seems to be for the best. I just love the look of the community as a whole, which is not the case with a lot of other communities.

[lisasellshouses]

Hey Mike,

That is what I am noticing too. We are coming up on our 2 year mark and we are sniffing around as well. We were not investors but as you know with rising prices we need to figure out a good way to continue to stream line our debt. I have just done the math and I think between the HOA (which never goes away and seems to increase yearly) and the Mello Roos...over 10 years I think it is around 24k....24 thousand dollars...to live in a community where they tell me how to live my life. Where the security is more like a meter maid and the pretty committee drives by to bother me about every weed or vine that is growing....what could you do with 24k? Buy a car? What could you do with your life without an HOA? Wait I think I am selling myself out of this neighborhood.

Kirah,

I love that you are thinking out loud about these issues. As a real estate agent, i make it a habit to bring up just these topics when i have clients moving into folsom. They ultimately make the choice, but it is part of my job to bring up the different issue and let them work them work thru them. the added cost of HOA and mello roos, can definintley effect the buying stage. and the qualifiying for some individuals. For every 100 in HOA, you can spend another 10K on a house. For the first time home buyer, this is huge. It can effect debt to earning ratios as well.

Alot of people dont look at mello roos close enough. You must look at it as if it is an additional cost to purchasing a home because it is. So if a house is costing you 500K and the mello roos is another 24K, then the cost of the home is 524K. compare that with other homes, some may have mello roos some dont.

If you only stay for 5 of the 15 years you paid 1/3 of the tax.

Most new areas have HOA-some like them some dont. some dont realize how strict they are until they get into them, but it is ok when they consider the benefits. security, lawn service, conformity, ect....everybody is different.


the question remains, did the HOA benefit me? was it an evil necessity becuase i want a certain neighborhood? Also, Some people seem to think that a house with HOA's will appreciate more than one without..

the jury is still out on this....