Orange County Homes with No Mello Roos
What is mello-roos? Basically it is a way of financing the cost of public infrastructure such as sewers, roads, parks, schools, fire stations and other public services needed to support a new development. Newer areas of Orange County (homes built after 1978 when the Proposition 13 was passed), will typically have these bonds, that lasts for approximate 20 to 40 years and are paid by the home owners. The mello-roos is not a percentage of the home as many realtors will typically say. They are fixed amounts on top of the property tax rate. Here's a picture of the city of Ladera Ranch, a typical mello-roos community.
So for example, for two similar homes that can be even in the same city, the property taxes can be completely different depending on the existence of mello-roos bonds, and the differences are considerable, from about 40 to 80% difference. Typical areas in Orange County with mello roos bonds are Ladera Ranch, Aliso Viejo, Dove Canyon in Rancho Santa Margarita and Talega in San Clemente. When looking for Orange County Homes with no mello roos, keep in mind that for tax purposes, just because a home doesn't have mello-roos, it is not a better deal, as property tax rates vary from locations and can be comparable even with the mello-roos assessments.
Search all homes in Orange County that don't have mello-roos assessments that are currently for sale including short sales and foreclosures. For more information about the mello-roos assessments in an specific area or for a showing of any of the homes listed below, call us at (949) 888-6788 or contact us via email. Read more about the Orange County Mello-Roos Properties and implications.
When purchasing an Orange County home that has Mello Roos bonds, make sure to always investigate the basis for the tax, it’s duration and any potential for increase (yes, they can increase). Also, when applying for financing on a home, be aware that this will affect your qualifying ratios.
Here’s a sample Orange County property tax bill prepared by the Franchise Tax Board showing a typical breakdown for the deductible and non-deductible portions of the bill. One clue that an item is deductible is that there is a tax rate assigned to it.