You Know You Want to Talk About HOA and Mello Roos

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When you are buying a house, especially in today’s environment, you have to look at all the different things that are costing you money on a monthly basis. Homeowner’s Association dues and special assessments (Mello Roos) can be two of the main costs we need to look at.

Costs to Consider When Factoring Your Housing Payment

We all know that HOA and mello roos (or property taxes) can add to your payment. But do you even know what these things are?

HOA Fees

An HOA is a homeowner’s association that will have general rules for that community. The idea is that they are trying to preserve the value of those homes by making them look more uniform.

That being said, HOAs can also have restrictive rules against things like parking an RV in front of your house. So, it’s up to your personal preferences when choosing to buy a home – in vs. outside an HOA.

Special Assessments / Mello Roos

With special assessments (known as mello roos – these two terms are interchangeable). It means that the developer came in and made a deal with the city to put in certain developments such as street lights, schools, parks, gutters, etc. The developer takes out a big loan, then splits it up so each homeowner has a piece of that loan.

So, basically mello roos are a large loan that is held by many people inside of the association and will be paid off one day. Many of the newer developments have higher special assessments. Older developments may have the mello roos already paid off, so you don’t have to worry about those costs.

Should You Buy a Home with HOA or Special Assessments?

When choosing a home, there are obviously costs that factor in. But there are benefits for newer communities that have these costs – for example, they might have better facilities. And if you’re looking at home without an HOA, it will save you money, but there may be benefits you are missing by not having an HOA in the neighborhood.

If you want to connect with me, you can call or text me any time. I’m here to help with Temecula real estate, including buying and selling homes in the area. Text, call, or email me at (951) 473-0390 or [email protected]