Finding an up and coming neighborhood

I recently read an excerpt from a new book authored by one of my favorite real estate tycoons, Barbara Corcoran. Barbara Corcoran founded The Corcoran Group on a $1,000 in New York City. It is likely the most successful real estate company in New York.

She suggests following the tips below for finding up and coming neighborhoods. While these efforts apply very nicely to large cities, such as New York, Chicago, Atlanta, modifications to each do apply to small town Montana.

• Check out a new neighborhood when the sun goes down. Do you feel safe? Are there young people? Look for new nightclubs, restaurants, and bars. Are there lines forming to get inside? These are all good signs according to Corcoran.
• When touring a new neighborhood during the day, look for folks sitting on park benches, feeding ducks or pigeons, walking through the neighborhood.

Corcoran suggests that the stages of a neighborhood begin with young folks moving in because of affordable rent or purchase prices. Following shortly are nightclubs, bars, and restaurants, followed shortly by retail shops and offices. Eventually the neighborhood becomes trendy and people with more money can't wait to buy something in the area and are willing to spend money to do so.

This phenomenon in action can be seen in Bozeman's historic northeast neighborhood. When I moved to Bozeman 4 years ago, my Realtor told me that the "northeast side is where the working people live". Well, since I was a "working people" I fit right in and bought a little house on Plum. A lot of people bought in the northeast at that time because of its affordability. Shortly after that, the Mill St. District was created, an Italian bakery moved in, the Village Downtown sprouted up to the east, and the area became a hotbed for those willing to spend money to live there. Little old "working class" houses were purchased for $300,000 and more, torn down, and rebuilt. A short drive on Plum Avenue proves just that with 3 very large houses surrounding my old 1 bedroom yellow shack.

So where's the next hotbed? Apply Corcorans methods. Look for affordability and accessibility first, such as downtown Livingston and places in Helena. Look for signs of revitalization. Livingston is full of this with the new Town & Country and proposal for a new hospital. In fact the new hospital location will sandwich downtown and the historic east side of Livingston -- the affordable "working people" side. Drive around, better yet, ride a bike during the day and evening and check out the people.

Other places in and around Bozeman I would watch include newer subdivisions popping up on Huffine or Jackrabbit, near schools. Look for starter neighborhoods, such as West Winds Subdivision off 19th, for investment opportunities.

If your Realtor ever says to you "working people" be sure to thank that Realtor. Their ignorance could make you a bundle and provide you with a great place to live!

Montana Declaration of Homestead

If you have $11 after filing your tax return, here's a way to spend it!

In the state of Montana there is a Declaration of Homestead, which protects your home against claims against you rising from accidents or in the unlikely event you are sued. The Declaration of Homestead protects your equity up to $250,000.

Example: Joe's house is worth $250,000. Joe has a loan balance of $150,000. The Declaration of Homestead protects the $100,000 equity. So, if Joe is in a car accident and sued he cannot be forced to sell his house because that equity is protected.

E-mail me at Connie@BozemanMontanaProperties.com for a blank Declaration of Homestead. Complete the form and file it with the Clerk and Rercorder's office in the county where your house is located. I will also be sending out a copy to my e-news members. You need to file the Declaration of Homestead before you get in an accident!

If you filed a Declaration of Homestead prior to the increase from $100,000 to $250,000 you are automatically protected at the higher limit.

Wednesday's with Connie ~ Beneficiary Deed

Beneficiary deed is new to the state of Montana. When taking title to a property, most commonly that is by warranty deed. A new "rider" option was added during the last legislative session and that is the beneficiary deed.

A beneficiary deed names a beneficiary to your property should something happen to you. The beneficiary receives no rights to the property, cannot borrow against the property, and you cannot be sued or loose your house for something your beneficiary does. The only time the beneficiary has a right to your property is at your death. Upon death, the beneficiary automatically becomes the owner of your property and that property does not have to go through probate. The advantage is that this property can be immediately sold should money be an issue at the time. All loans on the property still need to be paid and the beneficiary may still be subject to inheritance tax.

Practical uses of a beneficiary deed is for the single person who doesn't have a family or chooses to leave their property to someone else. Another use is sibling to sibling or parent and child. In the event of an unexpected loss, the beneficiary can readily make decisions without going through many months of probate, which can be detrimental to savings accounts.

No one likes to think about these things, but planning for them is vital. Should you want more information, ask your title company or send me an e-mail.

Monday Morning Tip ~ Avoiding Mud

Affectionately I've referred to this time of year as "mud" season, the time just before spring and just after winter where the ground resembles mud soup mixed with some decomposing leaves left over from fall. Pretty picture, huh? Well, if you're trying to keep your house clean here are some tips I've found that work.

Keep a pair of easy-on-easy-off shoes by the door and use these as your outdoor shoes during this time of year. I use this pair of shoes to take out the trash, pick up the paper, run out to the garage, etc. It helps if right next to those shoes you keep a pair of slippers for inside the house.

If you have dogs, leave a towel by the back door to wipe their feet each time they come in.

If you get mud on your carpet leave it there until it dries and then vacuum it up. Cleaning wet mud only smears the mud and makes it much harder to clean once it does dry.

Invest in a Swifter or some other type of quick moping device. If the mud is dry, use a terry cloth towel on the bottom of the Swifter to pick up loose dried mud. You can also dampen the towel, but you will have to rinse it out. You can wash the cloth and reuse it. If that's not enough, a quick damp Swifter over the floor does wonders and it takes half the time since often you don't need to sweep first.

Finally, one trick I learned from my high school boyfriend is to walk flat footed across mud, which keeps you on top of the mud and tends to prevent sinking in!

Sunday Investment ~ Home with an apartment in Bozeman for $250,000!

Located just a few minutes walk from the Community Coop is this very affordable 2 bedroom home with a 1 bedroom basement apartment. Rental income from the apartment is $500 per month. At $250,000 with 3% down, monthly payments would approximate $1,650, including taxes and insurance. With $500 rental income per month, the total out of pocket cost to own this home is $1150 per month plus utilities. This is about what rents are now in Bozeman.

This charmer has hardwood floors on the main level and over 1200 sq. ft of living space on the main level and an additional 1200 sq. ft. of living space for the downstairs tenant. The home sits on a 6,000 sq. ft. lot and comes with a full appliance package.

This home is easy to show. I welcome the opportunity to work with you on your purchase of this beautiful home with rental income. Call Connie today for an appointment at (406) 585-5414 or send me an e-mail: Connie@BozemanMontanaProperties.com.

Listed by Keller Williams.

Baxter Meadows developer wants to buy back the 100-acre park

In Bozeman's Daily Chronicle on Wednesday, April 2nd, Dave Richardson reports that the developer of the Baxter Meadows subdivision wants to buy back the 100-acre regional park from the county and he is suing the county to do so. The stated reason according to the Chronicle is because the county intends to use 2 acres for a new fire station and 911 call center.

I find this lawsuit ludicrous. Here are just a few things to consider:

• The closer a home is to a fire station the safer the home and the occupants are. In Bozeman, our fire department responds not only to fire-related calls, but also to health emergencies such as heart attacks. Currently the closest fire station to Baxter Meadows is on South 19th near Koch. If those folks are on a call, the next closest fire station is downtown Bozeman.
• The 911 call center handles emergency calls made by community members and dispatches the appropriate personnel such as police or fire. I am really having a hard time grasping how this is a detriment to the Baxter Meadows subdivision.
• Lastly, in the Chronicle article the developer states that he wants the land back and the conservation easement removed. Without the conservation easement the developer would be able to develop the property - build more houses.

According to the Baxter Meadows website the developer states "urban sprawl strips neighborhood[s] of many great qualities" and "this premier Montana development features a range of ... opportunities ... including the 100-acre regional park". I ask the developer if he is prepared for a lawsuit from every single property owner in Baxter Meadows and, while we're at it, throw in lawsuits from every single property owner, developer, and builder in the surrounding subdivisions, who also built and bought for the advertised regional park. The developer of Baxter Meadows created a synergy of development around this regional park and he will have to answer to that.

The developer issued a statement instilling fear that the county will carve out space for a jail or waste transfer station. According to the county attorney this land can be used for public good. I ask the developer if he really thinks these scare tactic propaganda are for the better good of the community - say a jail right next to the YMCA, at least 6 new subdivisions, the middle school and Emily Dickinson? I can't imagine even the government thinking that is a good idea!

So fight for your land back, remove the conservation easement and create more houses to, in your words, "...strip neighborhood[s] of many great qualities".

To read more about Baxter Meadows, including their position statement for the lawsuit, click here.

To buy a home in a well planned, integris community or to sell your Baxter Meadows home and move to well planned, integris community, send me an e-mail. I am happy to help. Connie@BozemanMontanaProperties.com.

Wednesday's with Connie ~ Replacing Your Appliances

In the last five years I've met only one client that has an appliance replacement schedule. I've always thought "Shoot! It doesn't work any longer, time to get a new one!" According to Consumer Reports, appliances should be replaced. To determine when to make these replacements, the report considers age, typical repair and replacement costs, and improvement to new models.

Two other important considerations include possible increased energy savings by upgrading to energy-star appliances and depreciating the new appliances on your tax returns. Appliances can be depreciated on a 5-year schedule. Talk to your tax adviser for more information.

Below are Consumer Reports guidelines for appliance replacement:

6 years ~ dishwashers, over-the-range microwaves, top freezer refrigerators

7 years ~ clothes dryers and top-load washers

8 years ~ bottom freezer and side-by-side refrigerators, electric and gas ranges, electric wall ovens, front load washers