Prospective homebuyers often make the mistake of overlooking key ownership costs when considering how much they can spend on a property. As a property investor, you’ll need to manage your mortgage payment, pay full utility charges, reserve funds for maintenance and repairs and maintain comprehensive insurance coverage. There are also a number of lesser-known expenses that first-time buyers should beware of. This is especially true in Irvine, where taxes to repay community bonds are commonly imposed. When figuring how much you can afford to spend on a home for sale in Irvine, be sure to include the following costs as part of your overall budget.
Irvine homeowners pay one percent of the home’s assessed price for the base tax. There are, however, a number of miscellaneous fees that are likely to be factored into the average buyer’s tax bill, including fees for the water district, red ants, and vector control. Cumulatively, however, these additional fees are fairly nominal and do not generally exceed $200 annually. All total, the average tax bill ranges between 1.05% and 1.9% of the assessed property value once a special communal tax called Mello-Roos have been added in.
Mellor-Roos are taxes that many Irvine residents are required to pay in order to settle the bonds that were used to cover the costs of developing the community. These charges come as part of homeowners’ annual tax bills, however, they can be paid on a monthly basis. The amount that must be paid will depend upon the age of the home, the time of construction, and the subdivision. While some homeowners are only responsible for paying these taxes for ten years, others can continue to see Mello-Roos tax bills for as many as 30 years.
HOA dues are paid by property owners in subdivisions in order to cover common area maintenance. These monies keep the neighborhood looking good and ensure that investors have access to an impressive array of communal features. When purchasing real estate in Irvine, buyers should anticipate paying anywhere from $200 to $400 on average per month in HOA dues.
If considering homes in this area, buyers may be tempted to base their purchasing goals and buying decisions on the listed price per square foot. It is vital, however, to determine how much properties will actually cost once these additional and essential expenses have been factored in to the overall price of the home or condo for sale in Irvine, CA.
For help navigating the home-buying process, reach out to the Irvine real estate experts at Irvine Residential living. We specialize in Irvine properties and can help you better understand total ownership costs, financing options, and schedule showings for properties that meet both your financial and personal wish lists! Call us at (714) 454-6304, we look forward to hearing from you!