New home Vs existing homes

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waitin4ever_IHB

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Checked out portola springs Paloma this past weekend. Going by the last phase sale prices it seems that 2200 sq. ft home can be had for 640K approx.

Mello roos + HOA is 800 dollars



Very similar comparision to these would be some homes in Northwood Pointe [Carlyle tract]. Same schools, same builder (brookefield)

and similar two home tandem but 10 years older. The listing prices on these are around 690K.

Mello Roos + HOA is 300 dollars.



which one is preferable??



On a separate note does the rent Vs own calculator on this blog cover most of the expected expenses

or is there something significant missing there.
 
[quote author="witin4ever" date=1242186380]On a separate note does the rent Vs own calculator on this blog cover most of the expected expenses

or is there something significant missing there.</blockquote>


There is nothing missing, but some of the assumptions need to be checked as conditions change. For instance, you will need to input current mortgage interest rates.
 
Weird that the older one is more expensive (although factoring in the taxes, the difference evaporates and swings in the other direction).



I personally believe that a house (with proper maintenance) can last basically forever, although maintenance costs do go up somewhat as the house ages. There are also some disadvantages to buying a new home-higher HOA fees and taxes, you have to add landscaping (and your neighbors might not do so in a timely fashion), you might be farther from shopping and schools, and there might be bugs that need to be worked out with the house (should be covered by the warranty, but still a hassle).
 
Indeed I found it wierd at the begining that the old home was almost 50 to 60K more

expensive. But like you said the HOA and mella roos actually makes the monthly

payment more on the newer (but 50K cheaper) home by almost 300 dollars.



Are the realtors/homeowners in Irvine calculating these details to come up with their

list price. I personally would think that the price should be same between old and new homes.

and that the new homes cost you more per month because of taxes and HOA.



Or the thinking on the part of sellers/realtors is that price it high and if someone offer 5-10%

low it is still a great deal.



either way these home though still very expensive are selling quite fast, which is again

so confusing. Can't believe people think these are bargain prices!!.
 
[quote author="IrvineRenter" date=1242191745][quote author="witin4ever" date=1242186380]On a separate note does the rent Vs own calculator on this blog cover most of the expected expenses

or is there something significant missing there.</blockquote>


There is nothing missing, but some of the assumptions need to be checked as conditions change. For instance, you will need to input current mortgage interest rates.</blockquote>




Irvine Renter,

Thanks for the reply. I'm a daily reader of your blog but today was my first post.

I'm specifically was wondering about some items on the rent Vs own calculator.



1] there is a special taxes section. normally it comes up preloaded with 0.25%. you had 0% in you yesterday's blog entry. what is this for



2] Home owners insurance of 0.25% is it normally the rule of thumb.



3] maintenance reserve. normally it comes preloaded with 1%. again you had it at 0.5% especially for a older home. What is the general rule.



Thanks.
 
[quote author="witin4ever" date=1242186380]Checked out portola springs Paloma this past weekend. Going by the last phase sale prices it seems that 2200 sq. ft home can be had for 640K approx.

Mello roos + HOA is 800 dollars

.</blockquote>




800 bucks? holy cow
 
[quote author="witin4ever" date=1242210678][quote author="IrvineRenter" date=1242191745][quote author="witin4ever" date=1242186380]On a separate note does the rent Vs own calculator on this blog cover most of the expected expenses

or is there something significant missing there.</blockquote>


There is nothing missing, but some of the assumptions need to be checked as conditions change. For instance, you will need to input current mortgage interest rates.</blockquote>




Irvine Renter,

Thanks for the reply. I'm a daily reader of your blog but today was my first post.

I'm specifically was wondering about some items on the rent Vs own calculator.



1] there is a special taxes section. normally it comes up preloaded with 0.25%. you had 0% in you yesterday's blog entry. what is this for



2] Home owners insurance of 0.25% is it normally the rule of thumb.



3] maintenance reserve. normally it comes preloaded with 1%. again you had it at 0.5% especially for a older home. What is the general rule.



Thanks.</blockquote>


1. Special taxes are for Mello Roos. The property I featured was in Woodbridge that has already paid off its Mello Roos bonds. Some communities, particularly the new ones, have very high Mello Roos fees, some as high at 1%.



2. The 0.25% insurance is a rule of thumb.



3. The maintenance reserve I have as a default in the calculator at 1% would be for a moderately aged single-family detached home. Condos have lower maintenance costs because you pay for exterior maintenance in your HOA fees. Older is generally more expensive than new, and detached is more expensive than attached. Also, rentals are more expensive than owner-occupied because renters sometimes trash the place.
 
1. Special taxes: Even in places without Mello Roos, there are usually a lot of small taxing districts, like community colleges or water, etc, that add on around 0.25% to the 1% base tax rate. I've never seen a property in CA that has a straight 1% rate.
 
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