Two homes with the same price can have very different monthly costs. In San Diego the difference often comes from the HOA, special taxes and insurance, not the mortgage.
HOA dues and what they cover
Most condominiums and many newer communities have a homeowners association. Dues pay for shared maintenance, insurance on common areas and reserves for big repairs. Ask for the HOA documents and read the budget, the reserve study and the meeting minutes, not just the monthly figure.
- Is the reserve fund healthy, or is a special assessment likely soon?
- What do the dues include, such as water, trash, building insurance or a pool?
- What are the rental, pet and parking rules?
Mello-Roos and other special taxes
Some newer communities pay a Mello-Roos special tax, added to the property tax bill to fund local infrastructure. It is listed in the disclosures, and it can be a significant part of the monthly cost, so ask for the full figure before you make an offer.
Property tax after a purchase
California generally reassesses a property when it changes hands, so the seller’s current tax bill is not a guide to what you will pay. Ask John or the county assessor for an estimate based on your purchase price, and confirm it with your lender.
Insurance
Homeowner’s insurance availability and cost differ by location, especially in fire-prone areas. Condominium owners also carry their own interior coverage. Get quotes early so the number is in your budget from the start.