The farm in Poway

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Submitted by Pbranding on May 19, 2022 - 8:34am

So prequalifciation opens for the new home community the Farm in Poway today https://www.lennar.com/new-homes/califor... . I just noticed the builder Lennar want to charge $611 hoa fees. It’s not gated and there’s no community pool. It’s just to help subsidize the hiking trails and green space around the area (which is open to the public). That seems outrageous to me. Maybe they are trying to get away with such a fee because there is no Mello Roos tax? Thoughts on how such an exorbitant hoa fee would affect future home sales?

Submitted by sdrealtor on May 19, 2022 - 9:10am.

Lots of interior roads, driveways and common space to maintain which is very nice but expensive. Condos around me have 300-500 HOA for the most part these days and many built 30+ years are dealing with assessments for aging facilities.

Welcome to home ownership. If you want something new like that its pretty much take it and like it.

Submitted by sdrealtor on May 19, 2022 - 9:13am.

And thanks for sharing as I had not heard of this. Its interesting that with pretty much everything west of 15 built out in SD County they are starting to look eastward for master planned communities

Submitted by Coronita on May 19, 2022 - 9:45am.

thanks for sharing. Good to know!

Does anyone know about the new homes being build off of 56 in the Del Sur area next to the Exxon Mobil and Intuit office?

Submitted by sunny88 on May 19, 2022 - 2:47pm.

These homes will probably sell well despite the high selling price and HOA fees due to shortage of new homes in San Diego. Families will also like the school district.

Submitted by Pbranding on May 19, 2022 - 5:00pm.

I should clarify my original question. I agree they will probably sell but my question is about future resale when it’s no longer brand new construction. How would such an exorbitant hoa fee affect future resale say 10 years from now? Especially when you don’t really get much for that fee.

Submitted by sdrealtor on May 19, 2022 - 6:38pm.

When places like Stonebridge in Scripps, 4S/Del Sur in RB and San Elijo in SM were built everyone said high fees would forever doom them. The communities all turned out very nice and buyers seem to be fine with the fees

Submitted by sdrealtor on May 21, 2022 - 8:21am.

Just realized this is the old Stoneridge country club. My old business partner lives over there. I’m sure he fought against it. Not surprised he lost

Submitted by gzz on May 21, 2022 - 11:39am.

I am completely indifferent to Mello Roos and HOA fees. They just mechanically reduce the value of the property by their discounted present value.

A quick way to estimate is to multiply the annual amount by 20, and consider that the discount in property price over a no HOA or Mello SFH. You can make a case that 15 or 25 are better multipliers, but I think 20 is reasonable.

If people really cared that much about avoiding HOAs, the builder could pre-fund it and raise the purchase price. But I don’t think they actually care and I don’t think you should care other than doing a quick NPV mental adjustment.

Submitted by sdrealtor on May 31, 2022 - 5:32pm.

As someone living in a community with a large and amazing HOA this couldnt be more wrong. My HOA adds tons of value to my and many neighbors lives. We have amazing parks for our kids to play in. Its my swim club. Its my tennis/pickleball club. Its my gym. Its my running trails. Its the catered Memorial day BBQ/Chili cook off that I took friends to yesterday for no charge. Its the beautiful grounds and landscaping I marvel at on my walks to get coffee each morning. For just over $100/month I get incredible value. There would have been no way to estimate the water and landscaping bill for the massive space we take care. The invention of the game pickle ball. The cost for redoing our swim club next year which will be around $1M and we have the reserves set aside to do. The clubhouse which has hosted thousands of birthday parties, weddings, bar mitzvahs and company meetings/parties over the years. This only begins to scracth the surface. There is no discounte dpresent value there is additional value and it is a big reason our home prices are higher than surrounding non-hoa communties

Submitted by Pbranding on May 31, 2022 - 6:57pm.

Sdr sounds like you get alot for your 100/month and in your situation I agree but 600/month for no pool, no gate, and the trails are open to anyone? I think that’s harder to swallow and I think it will discourage would be buyers in the future when it’s not shiny an

Submitted by Pbranding on May 31, 2022 - 6:56pm.

sdrealtor wrote:
As someone living in a community with a large and amazing HOA this couldnt be more wrong. My HOA adds tons of value to my and many neighbors lives.

Sdr sounds like you get a lot for your 100/month and in your situation I agree but 600/month for no pool, no gate, and the trails are open to anyone? I think that’s harder to swallow and I think it will discourage would be buyers in the future when it’s not shiny and new.

Submitted by sdrealtor on May 31, 2022 - 7:58pm.

Pbranding wrote:
sdrealtor wrote:
As someone living in a community with a large and amazing HOA this couldnt be more wrong. My HOA adds tons of value to my and many neighbors lives.

Sdr sounds like you get a lot for your 100/month and in your situation I agree but 600/month for no pool, no gate, and the trails are open to anyone? I think that’s harder to swallow and I think it will discourage would be buyers in the future when it’s not shiny and new.

Yes I agree we get a lot and are probably on the far end of that. Our parks and traisl are not restricted nor is there a gate. A decade or so ago we dedicated the trails to become part of the Carlsbad trail system. The city now maintains them for us in return for us opening them to public though they always kinda were anyway. It saves us some money and they can include us on their trail maps.

Just pointing out that an HOA does not automatically devalue a property. As for the one you are describing how it impacts it in the future depends upon market conditions. In a buyers market it could be a significant drag. In a sellers market it gets larely ignored.

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