Arizona Elegant Homes

Best Places to Live: Old Town Scottsdale

From time to time we’ll be highlighting some of the best places to live in the Greater Phoenix area, including some great information on the local highlights interspersed with real estate tips and information. We previously explored Paradise Valley and Cave Creek; this week we’ll be venturing a bit more into the center of the Valley as we examine the rustic heart of Old Town Scottsdale.

Old Town Scottsdale Housing Options Are Never Limited

While the city does do quite a bit to retain the Old Western sense, it is not without a wide range of home choices and convenient amenities that make it especially appealing to prospective residents. Homes in Old Town Scottsdale range from sprawling multi-acre estates to modest yet adequate single-family dwellings that are perfect for those in the process of downsizing. Other great options for Old Town Scottsdale living include condos and patio homes, all of which can be found in abundance in the area ranging in architectural styles from Southwestern adobe construction to modern units overlooking the city.

An Area Perfect for Retirees & Vacation Homes

Even in the heart of Scottsdale you are never far from the conveniences and amenities of the Greater Phoenix area. The city is bordered by the Loop 101 on the east and the 51 freeway on the west, both providing quick and convenient access to downtown Phoenix and surrounding cities. This places Scottsdale in the unique position of enjoying relative seclusion without sacrificing quick access and necessary conveniences. Coupling this with the wide array of home choices available, Old Town quickly becomes a perfect choice for retirees and those seeking vacation homes.

Beautiful Climate and Cultural Adventures Await

The city’s warm climate lends itself to a multitude of outdoor activities, including specially-made environmental-awareness hikes, horseback riding and mountain climbing (a favorite activity at nearby Camelback Mountain, which looms over Old Town). Golf is never routine when choosing from one of over 200 courses scattered throughout the Sonoran Desert setting. The area is well-known for being an epicenter of art in the Valley, containing a concentration of over 100 galleries that explore everything from post-modern sculptures to Southwestern textiles to Native American crafts. A real highlight for local residents is the constantly-changing exhibits at Scottsdale Museum of Contemporary Art.

Thanks to the invigorating buyer’s market in Phoenix, the time is ripe for creating a new lifestyle in this unique city. You’ll find the options are plentiful as we explore together how to make the next phase of your life a dream come true.

Revised Homebuyer Tax Credit Brings Great Opportunity

Late in the last year there was much discussion about the 2009 First-Time Homebuyer Tax Credit, a new act passed by Congress which allowed significant financial benefits to those buying their first home. While these benefits were great, many existing home owners who were ready to downsize or relocate to another house felt left out of the equation. Not receiving as much media attention, but of advantageous news to those existing homeowners, an extension was passed to allow a greater number of people to take advantage of tax credits when buying new homes. Among this group were repeat buyers and those whose income was above the previous limitation of $75,000 a year (for individuals).

Revision Details Perfect for Downsizing and Rightsizing

Whereas the original revision was limited to first-time buyers, the tax credit is now open to repeat buyers who have owned and lived in their home consecutively for 5 out of the last 8 years. The one restriction that remains in place to all buyers, regardless of new or repeat, is that the purchased home used for the tax credit must be a primary residence (as such, vacation homes are not applicable) and not exceed $800,000. This is great news, however, for those looking to downsize or resize their living style as we discussed last month.

Tax Credit Income Limits Raised; More Able to Apply

The income limits have also been adjusted; the old limits were $75,000 in annual income for individuals and $150,000 for those who are married and filing jointly. The expanded limits are $125,000 for individuals and $225,000 for those who are married and filing jointly (married but filing separately must adhere to the $125,000 income limit). A new restriction in place requires that the homebuyer must attach documentation of their most recent tax return, a move designed to prevent fraudulent activity. The tax credit money must be repaid in full if the homebuyer does not end up using that home as their primary residence for the next three consecutive years.

Time is of the Essence to Use the Tax Credit

Time is of the essence if you wish to take advantage of this tax credit revision for your new home, rather relocating or downsizing. To be effective, the purchase agreement must be signed by April 30, 2010 with a closing date no later than June 30, 2010. The strong buyer’s market has created a wealth of homes in the Greater Phoenix area within reasonable price ranges, making this opportunity even more attractive for swift action.

How to Downsize

The idea of downsizing a residence is not just one of material issues; it is a question of lifestyle, daily needs, and thinking about the future. In my last blog I covered the differences between downsizing and rightsizing, but the considerations that one needs to put in to each are similar. Rather you’re downsizing due to a financial or medical need, or simply rightsizing in an effort to simplify your lifestyle and reduce the space you use, there are some very real questions that need to be looked at; your list of pro’s and con’s should be addressed with equal fairness to examine if this is the correct solution for you at this stage in your life.

Lifestyle Needs When Downsizing

Take some time to realistically consider your space needs; this includes evaluating the amount and dimensions of any current furniture you wish to take with you. If you had children who recently moved out, then you may have extra bedrooms that have become storage spaces, more or less. Before you downsize too drastically, consider if your new residence will need an extra bedroom or two for out of town visitors. One of these rooms could even be used as a spare bedroom while serving the dual purpose of a den, home office or library for the bulk of the time. Consider space that you currently use for hobbies. If you are changing locales, not just neighborhoods, consider your new seasonal needs or changes in lifestyle that you’ll need to accommodate. An important, but oft overlooked, element is the kitchen: will you be eating from home and cooking more often or less? Take this and other daily life items into mind when deciding if a smaller space truly suits you.

Downsizing With A House Full of Items

Downsizing is a great time to go through old items, shed what you don’t need, and implement new systems of organization in your life. Unless you’re planning to put a large amount of items into storage, it stands to reason that you’ll have less space for items in your new residence. While a seemingly scary idea at first, this can be extremely liberating and refreshing. Review what is important to you, what you need or want to hold on to. Professional services exist to help with this process and guide you to proper channels of selling or donating items. Be sure to take into consideration wall space downsizing (for art and pictures) and kitchen downsizing. The ultimate goal of this process is to not have to store items again or have large amounts of clutter from years past; the goal is simplifying and only keeping what you need and what is truly essential to a satisfying and joyful life in your new residence.

Downsizing Vs. Rightsizing

The term ‘downsizing’ is often used in the real estate market to describe individuals and families who are moving from a larger property to a more modest residence. Most of the time, this is associated with major life events, such as when the last child of a large family leaves home. It has also been used when financial inconveniences or medical events have made the change more practical. While very few people actually want to give up their larger house (the achievement of a bigger residence was once a point of pride), the act of downsizing is understandably associated with forced circumstances, not always positive. As a result, many people have unfortunately become embarrassed to admit the need to downsize; due to the current economy, though, coupled with a new way of ecological thinking, downsizing is beginning to gain in popularity, under a new name: rightsizing.

Rightsizing and What It Means for You

Viewed with a more positive outlook that is accompanied with a brighter mindset, rightsizing is the willing act of moving to a property and embracing both the amenities and square footage that are actually needed for your lifestyle. While rightsizing can be done for practical reasons that are time-sensitive (financial and medical, to name two), it is seeing a growing trend as a way to cut back on expenses, be more ecologically sound, and be more mindful of consumed materials. Individuals and families that are looking to rightsize may take advantage of a lifestyle that includes a more intimate space and less furniture while being able to allocate the otherwise-used money towards home upgrades or other interests.

Rightsizing in Your Community

More often than not, rightsizing does not mean having to leave your current community. While many do choose to examine their rightsizing options when relocating, especially from across the country, the common rightsizing move happens within the same neighborhood. The current economical situation has created a powerful buyer’s market with rich deals to be found in nearly every community across all housing types. The abundance of home choices make rightsizing an opportunistic adventure for those looking to change their daily living needs. In my next blog, I will examine some of the considerations to be mindful of before rightsizing.

Wide Availability of Homes in Scenic Fountain Hills

In an earlier blog post, I discussed the plentiful availability of homes in the scenic Arizona communities of Desert Ridge and Paradise Valley, as well as the outdoor recreational amenities that are found in abundance. Another area I specialize in for those seeking second homes and vacation homes is Fountain Hills. Located 45 minutes outside of Phoenix, this scenic community is nestled behind Red Mountain in a charming desert environment that features ever-changing vistas of blooming desert flowers and towering Saguaro cactus. Long a popular vacation home spot, the terraced slopes of Fountain Hills light up the evening with a romantic ambiance not found elsewhere, especially in the community’s main lake, which is home to the fourth largest fountain in the world.

What Property Types Are Available?

Knowing what these oft-overlooked Arizona locales are like usually leads people to inquire about the types of properties available. Thanks to the strong buyer’s market, the options are far from limited. Modest to extensive ranch-style homes, luxurious residences, and horse properties are available in a wide range of architectural styles with well-appointed features. After considering which destination suits you and your family the best, we can work together on choosing the community, type of residence and area amenities that will enhance your lifestyle. This exciting time in the market allows us to culminate the second home dream with virtually limitless options!

$6,500 Tax Credit for Established Home Owners

It’s cash-for-clunkers time in the real estate market.

Last week, in addition to extending the $8,000 first-time home-buyers tax credit for another six months, Congress added a new $6,500 tax-credit for move-up buyers.

The credit can be applied for homes selling for as much as $800,000, and the income limits exclude almost nobody.

You have to have lived in your home for more than five years out of the last eight, but that’s hardly an onerous restriction. And homeowners who have put down roots have equity.

Remember that capital gains on your primary residence are excluded from taxation if you have lived in your home for the past five years. But the way the government is spending money, that exclusion cannot last.

But, but, but… Your home isn’t worth what it was in December of 2005. That’s true, but it doesn’t change anything. The home that you can buy now was also selling for more four years ago.

Here’s the way things really shake out: If you have equity in your home, you can take that equity as a tax-free profit — for now. At the same time, you can snag the $6,500 tax credit. And you can do all of this at historic low interest rates.

If your house is worth $400,000 and you only paid $300,000 for it, you could reap a gain of $100,000 — which would save you thousands of dollars in taxes. If you wait for prices to go higher, you may wait a long time for a much smaller return. And the house you buy then will have appreciated, also.

I think we’re looking at a perfect storm for homeowners with equity: You can move now, take a tax-free gain, get a lot more house than you could have bought a few years ago, all financed with a low-interest mortgage. And then, next April, Uncle Sam will write you a big fat check for your trouble.

On second thought, this is less cash-for-clunkers than the taxpayer’s revenge…

Homebuyer's Tax Credit Extended

Breaking News- The Senate has approved an extension to the Homebuyer's Tax credit, which include higher income limits and home purchase price, and is available if you enter into a contract by April 2010 and close by end of June 2010. Individuals with an income of up to $125,000, and couple with a combined income of up to $225,000 wishing to purchase a home of up to $800,000 are now eligible for the $8,000 tax credit. Additionally, if you've lived in your primary residence for at least 5 years, you are also eligible for a tax credit of $6,500 if you purchase a home.

The clauses of the new extension make it a great time to think about "right-sizing"- meaning that it's a great time to start looking at moving up into a home at just under a million dollars (and there are still great deals to be had in that price point), or down-sizing to a home that is cozier if the kids have moved out or if you are looking for something easier to maintain.

Call or email me today if you have questions about the tax credit extension- 602-722-7971, or vickie@elegantarizonahomes.com.

Do you think this will spur additional home sales?

Additional information at the Wall Street Journal

Exploring Vacation and Second Homes in Payson & Pinetop

Exploring options for luxurious Arizona living usually conjures up images of the scenic Sonoran desert, spotted with mountain vistas and rolling green golf courses. While these properties are readily available for even the most discriminating buyer, the seasonally cooler cities just north of the greater Phoenix area should not be ignored.

The Beauty of Rim Country

Located just ninety miles outside of Phoenix, the mountain town of Payson provides an appealing getaway for a second home or vacation home. Thanks to the emergence of a powerful buyer’s market and home prices at a low not seen for over a decade, the availability of homes is ripe for those looking to augment their lifestyle with a second property at this pivotal point in time. With a landscape that pops directly out of a Zane Grey novel, the Rim Country enjoys a favorable vacation-style climate with an average summer high of 92 degrees and an average winter high of 51 degrees. Recreational opportunities are perfect for active adults and retirees who enjoy fishing, hiking and camping.

Amazing Real Estate Opportunities in Pinetop

Another popular and very active market for second homes and vacation homes is Pinetop, a heavily-forested town located in Navajo County, just four hours outside of metropolitan Phoenix. This comfortable and warm escape from city life features a charming atmosphere, golf courses and a wealth of outdoor activities. If you're looking to expand your lifestyle with a well-deserved retreat, or looking to retire to a quieter town with quick access to all the benefits of the Old West, Payson and Pinetop feature a market ready to make your dreams a reality.