Tuesday, November 5, 2013

Mello Roos, Property Taxes, and Home Values

Most everyone that is buying or selling, in Santa Clarita Valley, has likely heard of Mello Roos.

To some it is a deal breaker, to others, it is part of the whole picture of their perfect home.

A little tid-bit of knowledge about the Mello Roos' for you follows:

Mello Roos, School Bonds, Community Financial Districts, Landscape Maintenance....all are forms of property taxes that are above and beyond the normal tax. We generally calculate about 1.25 to 1.33 for property taxes. Yet, with some of these extras you can be paying significantly more on your property tax statement.

How long do they last? One of the biggest questions. All are different. Some are as short as 14 years, some as long as 40. Most expire after a period of time, but I have heard of some renewing.

How much are they? Generally depends on what type of special assessment it is. Also usually depends upon the size of the home. I've seen LM as much as 1200/year. I've seen School Bonds around 2000/year. I've seen Mello Roos as much as 7000 per year and as little as 600 per year. Always ask your agent if yours has any.

Where in SCV? Stevenson Ranch, Fair Oaks Ranch, Valencia, Saugus, Tesoro.....lots of areas in Santa Clarita.

How do you know if the home you are interested in has one? Ask your agent! We know how to figure it out, well we sure should.

So what if the home you love has a special assessment?  You talk to your lender to make sure the extra amount is still okay for your loan program. It's considered into your monthly payment. As long as you can afford it, okay then!

Pay attention to these extra taxes when you see a home very undervalued. When you have to consider the cost on your taxes, you have to consider them as part of the cost of your home.

Are they deductible on your income taxes? Defer that question to your tax adviser. Pretty much every one I know writes it off, but there are stipulations on some. So be aware.

That's a brief, but hopefully helpful, synopsis on Mello Roos' and the like. If you have more questions, feel free to shoot me an e-mail: lauren@keepyourwitz.com

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