Wally Byam Caravan Club International

Published in the Bozeman Chronicle, July, 2008.

As recently reported in the Chronicle, the Wally Byam Caravan Club International (best known and easily identified as “the aluminum airstream campers”) are in to town for their annual rally. Bozeman is fortunate enough to be the only destination to host this international rally on five different occasions. The club is estimated to bring 2,000 people and $3 to $5 million to our area in a one week period. Club members, with the average age of 60 years old, are very active and love the cool weather, the beautiful setting, and the abundance of outdoor activities found in Bozeman.

This event brings up an interesting concept of luxury RVs as a second home. While many people purchase second or multiple homes in areas they chose to vacation and spend time in, there are a growing number of people who are deciding that their second home should be mobile with a new view every day.

Manufacturers such as Prevost and Newell dominate the highest end of this market which is the $1 million+ price range. Superior technology, attention to details and interior design features makes these RVs truly an “estate on wheels”. There are about 325 RVs sold in this price range on an annual basis which shows that it is a viable market segment. And although the price tag seems high, it can certainly compete with condos or homes in resort communities and also offers the versatility of choosing a new vacation destination each trip.

Certain trends are also emerging in the high-end RV market. Fractional ownership of models that range in price from $250,000 to over a million dollars is now possible with the services of delivery, pickup, repair/maintenance, storage/cleaning, and roadside assistance coming standard. This type of RV arrangement can fit the lifestyles of those who want the luxuries such as large plasma TVs, fine leather, top of the line linens, and Italian marble flooring for a few weeks of the year without tying up a large amount of capital. Shares can range from a few weeks to half of a year of annual usage depending on how much time is desired each year.

Another concept that goes hand in hand with the high end RVs is Luxury RV resorts that go above and beyond basic hook-up features. Some amenities include spas, heated swimming pools, boat rentals, golf courses, tennis courts, and much more. A one week stay at many of these resorts can cost about the same as one night at a traditional resort hotel, further adding to the appeal of this type of lifestyle. Some of the most opulent of these gated RV resorts are located in Palm Springs, CA , Hilton Head, SC, and Naples , FL.

Financing an RV as a second home involves the same weighing of options as the purchase of a traditional second home. Self-financing by “borrowing from yourself” is one choice to consider. Bank financing is of course a popular option with different loan programs available depending on how much you are willing to put forth as a down payment (10-20% down for a new vehicle is the norm) and length of the loan (maturation generally runs 10-15 years). Used RV loans usually require a larger down payment and shorter loan term. One additional point of interest in this area is using a Second Home tax deduction on the loan interest when applicable. To qualify, the RV must simply meet the criteria of a second home which includes being equipped for sleeping, living, bathing, food preparation, and dining activities which are all standard features on any RV.

Wally Byam’s simple philosophy of showing people that they could essentially bring “home” with them as they traveled near or far appears to still be going strong. The ability to find out what’s over the next hill while feeling at home in the process is a timeless feeling.

Robyn Erlenbush is owner of ERA Landmark Real Estate (with offices in Bozeman, Big Sky, Livingston and Clyde Park) and Intermountain Property Management. She can be reached at robyn@eralandmark.com.

Visit our website http://www.stuartandsally.com and http://www.eralandmark.com

Black Bull Golf Community – Luxury Club Homes

A remarkable convergence of spectacular high-country terrain and refined country living has made southwestern Montana’s Gallatin Valley one of the most desirable rural retreats in the American West.Black Bull is a 378-home premier golf community established on 485 acres of the historic Leachman Ranch in Bozeman, Montana. It has the services and amenities you’d expect from a premier resort, but in a relaxed, rustic-yet-upscale atmosphere true to its roots. Black Bull is an ideal home for the outdoor enthusiasts with abundant opportunities for fly fishing, hiking, mountain biking, horseback riding, skiing and snowmobiling in the adjacent Gallatin Range and Spanish Peaks. And, Yellowstone National Park and the Big Sky Ski Resort are just an hour away. Nearby Bozeman offers a vibrant restaurant scene and a good selection of shops and services. Black Bull Golf Community 4711 Love Lane Bozeman, Montana 59715 Club Home 96 Highnoon Bozeman, MT $1,195,000 4,059 Sq Ft 4 Bedrooms 4 Full Baths 1 Half Bath
	Acreage: 485 acres (196 hectares)
	Lots: 273 custom, single-family lots vary in size from one-third of an acre to one acre. Costs range from $195,000 to $650,000.
	Club Homes: 105 distinctive Club Homes are inspired by Locati Architects and designed for turn-key convenience. Club Homes range from 2,200 to 4,000 square feet. Prices range from $795,000 to $1,300,000.
	Golf: The 18-hole championship course was designed by former PGA star Tom Weiskopf. The quality of the course rivals that of the nation’s top golf clubs, but with the relaxed attitude that permeates everything here. Because the course is private and membership is limited, there will be virtually no need to reserve a tee time. The club features a 16-acre practice facility, which is the largest in the Rocky Mountains.
	Clubhouse: At the Clubhouse, members will have access to a fine dining restaurant, a full-service pro shop, a fitness center with spa and massage services, men’s and women’s lounge areas and meeting rooms.
	Swim and Tennis Center: The Swim and Tennis Center features a bar, indoor and outdoor casual dining areas, locker rooms and direct access to our hard-court tennis courts and swimming pool.
	Concierge: Concierge services allow community members the opportunity to enjoy their surroundings by providing amenities such as monthly updates of activities in the area, cleaning services, floral deliveries, special event tickets, restaurant reservations, day trip planning and scheduling, and more.

 

Click here to find out about additional amenities and to connect to the Black Bull Website.

1031 Exchange

When buying or selling a luxury Montana property, serious consideration should be given to whether you qualify for a 1031 Exchange, which is covered in Section 1031 of the Internal Revenue Code.

Simply put, a 1031 Exchange allows the owner of an investment property to sell that property and buy another “like-kind” property, thus deferring the payment of state and federal capital gains taxes. Taxes are only paid when a final property transaction occurs and the seller cashes out, which allows you, the investor, to build on your initial investment and increase its value without paying the taxes during on-going transactions. A number of properties qualify as long as they are investment properties and not your primary residence.

The IRS Section 1031 states: “No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment.”

If you are interested in a 1031 Exchange, Stuart and Sally will search for the ideal property that legally qualifies for your exchange. We will write into the Buy-Sell contract that you are going to be engaging in a 1031 Exchange. There will be an additional form, specifically for 1031 Exchanges, which we will include in the contract and have you sign. At this point we will provide you with the names of local, qualified 1031 specialists to insure your exchange goes as smoothly and professionally as possible. Our affiliation with ERA Landmark – Bozeman’s Number One Real Estate Company – provides us with access to a full staff of experts well-versed in all the paperwork and legalities involved in 1031 Exchanges.

As your real estate specialists, Stuart and Sally will provide you with the security and sense of well-being that comes from knowing that we are closely monitoring every aspect of your transaction to make certain that no detail is overlooked. And, naturally, we are always vigilant when it comes to protecting both you and your confidentiality.

Let’s Connect!

Call us at: 406-556-5013
e-mail: contact@stuartandsally.com

Meet Stuart Tilt & Sally Uhlmann!

Meet Stuart Tilt…

Since graduating from Duke in 1978, Stuart’s career has focused on communications, sales and marketing, beginning with her work at New York City’s Wells Rich and Greene Advertising. This led to many years in advertising sales for several publishing companies including Cahners Publishing. As an account executive for the noted Ketchum Advertising Agency, Stuart’s clients included the AT&T Bell Companies.

Stuart’s career took a different path while raising her two children in Washington D.C. As the owner of her own interior decorating firm, she successfully facilitated both residential and commercial clients to find their own distinctive visual styles.

In 2001, Stuart moved to Bozeman and turned her skills in sales, marketing and interior design in a different direction – real estate. Her background has been instrumental in her success as real estate agent specializing in the high end market.

Always involved in her community, Stuart is currently a member of the board of directors for the Gallatin Valley Land Trust and has served on the Museum Ball Committee for two years and the Heart of the Valley Humane Society Board. She looks forward to continued community service in the area she now calls home. Stuart loves to entertain, fly fish, ski and move to a new “project” house every three years or so all with the help of her husband Whitney.

 

 

Stuart fishing on the Big Horn River

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Meet Sally Uhlmann…

While still a teenager, Sally began designing and creating clothing for performers and major recording artists in her home town of San Francisco. She attended Antioch College before moving to Ibiza, Spain. By the age of 24, Sally had built her own fashion business as the founder and president of Salaminder, a designer clothing company. When she sold Salaminder in 1990, the firm had over 1,200 active retail accounts including the prestigious Neiman Marcus and Saks Fifth Avenue stores as well as Harrods’s in London.

During this time, newspapers from around the world did stories on this dynamic young entrepreneur who would roller skate from one end of her factory to the other.

Sally “retired” to raise and train 3-Day event horses on her ranch in Kansas. Her interest in this field led directly to her role as one of the three founders of Ariat International, now the leading equestrian boot company in the world. Utilizing her own sales and public relations background as the CEO of a clothing design firm, Sally concentrated on setting up the marketing and product introduction for the Ariat line.

As one of Kansas City’s best-known home chefs, Sally’s passion for cooking established her credentials as a writer and editor; Sally was the food editor of Kansas City Magazine and the entertaining editor for Home Design Magazine for five years.

Sally’s wide range of interests has led her to travel all over the world. It was a conference for one of her international projects that first brought her to Bozeman in 2002 and she immediately fell in love with the region and permanently moved her family to Montana the following year.

Sally has served on many civic boards and as an enthusiastic Bozeman resident, she has chaired the Museum of the Rockies Wine Classic for 2006 and 2007. The 2006 Wine Classic was the most financially successful gala in the history of Montana.

My $1,200 Radon Job

ABOUT THE HOUSE By GWENDOLYN BOUNDS 

The Least Sexy Home Improvement Could Be a Lifesaver

It might be the ugliest home improvement. Last month, I finally did something about my radon problem.

Two men came and drilled a five-inch-wide hole in my home’s bottom floor. They attached a suction system of white pipes and a big round fan to draw air — and radon — from underneath the house and vent it out through a black pipe stuck in the roof. The work took six hours and cost $1,200 — about what I paid a pro to retile my bathroom.

See the steps taken in Ms. Bounds’s project.

Most homeowners have heard about the health hazards of radon, a radioactive gas that emanates from rocks, soil and water. Outside, it’s relatively harmless, but inside it can collect in dangerous concentrations, seeping in through cracks in the home’s foundation and other openings. Radon is the No. 1 cause of lung cancer among nonsmokers, and one in 15 homes has an elevated level prior to treatment, according to the Environmental Protection Agency. The agency estimates 750,000 to 1 million U.S. homeowners have taken radon-reduction steps over the years and says those steps, along with techniques in new construction, have helped prevent 6,000 deaths.

Read More by clicking here!

The Wall Street Journal

 

Understand the Economic Stimulus Package

On February 13, 2008 , the economic stimulus package was signed into law by President Bush. This package includes many provisions which are important to the housing market, most notably increasing the loan limits for Fannie Mae and Freddie Mac (GSE) and the Federal Housing Administration (FHA). The National Association of Realtors ® (NAR) has shown great support for this package and predicts a jumpstart in the housing market which will help countless families and the U.S. economy as a whole. According to research conducted by the NAR, increasing the FHA loan limits could assist 138,000 Americans enter the housing market and will also give almost 200,000 homeowners the opportunity to refinance and ideally keep their current homes. Additionally, an economic impact study estimated that increasing the GSE’s loan limits could lead to as many as 500,000 refinanced loans and reduce foreclosures by 210,000. It is also anticipated that over 300,000 additional home sales could occur; there would be a reduction in housing inventory; and the prices for homes would increase and strengthen. The belief is that by increasing the loan limits for Fannie Mae and Freddie Mac, there will be improved liquidity in to the nation’s much stressed mortgage market. To use some numbers to put this in perspective, the FHA limit will increase to as much as $729,750 in high cost areas (to 125% of local median home prices) for loans approved on or before December 31, 2008 . The GSE limit will increase up to $729,750 for loans originated after July 1, 2007 to December 31, 2008 . Fannie Mae and Freddie Mac are currently topped out at $417,000. Please keep in mind these figures are estimates and not yet official figures. For those not familiar with FHA or GSE loans and their importance to the housing market, FHA loans- which are a part of the U.S. Department of Housing and Urban Development (HUD) – are insured loans, so lenders can generally offer better deals. They are often popular to first time homebuyers with a down payment as low as 3% of the purchase price, and most of the closing costs and fees can be included in the loan. Fannie Mae exists to expand affordable housing and operates in America ’s secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. Freddie Mac purchases, securitizes and invests in home mortgages, and ultimately provides homeowners and renters with lower housing costs and better access to home financing. Of course, the economic stimulus package is really somewhat of a short-term answer to a bigger issue. Additionally, the loan limit increases will only be in effect for the current year. The FHA and GSE Reform Bills are currently in the works, but not yet passed into law. However, this package should meet its goal of giving the housing market a boost as well as jump-starting overall consumer spending. NAR’s President, Dick Gaylord, recently reiterated the fact that with more affordable financing options, lower housing prices, and historically low interest rates, buying a home now is more affordable than it has been in many years. Furthermore, homeownership is still the best way that most Americans can build their wealth, and is one of the best long-term investments a person can make. Robyn Erlenbush is owner of ERA Landmark Real Estate (with offices in Bozeman, Big Sky, Livingston and Clyde Park) and Intermountain Property Management. She can be reached at robyn@eralandmark.com. Visit us at http://www.eralandmark.com/ & http://www.StuartandSally.com/

State of the Market – Bozeman, Montana

As we reflect on last year from a real estate perspective, the general consensus from those in the building, lending, real estate and related industries is relief that 2007 has come to an end. The local market in general saw lower numbers of sales, and yet several segments of the market experienced higher than average sale prices from the previous year. Marketing conditions and industry sentiments, so far through January 2008, seem guardedly optimistic, with many real estate firms and title companies showing an increase in the number of closings and pending transactions from 2007. Property showing activity has increased dramatically since the holidays, and more importantly buyers are writing offers, and sellers are accepting those offers. Though some buyers are still waiting for prices to go lower, market timing is very tricky, if not impossible, to execute perfectly in the real estate business. Many buyers are finding that lower interest rates coupled with seller incentives to discount prices, offer upgrades or participate with interest rate buy-downs, make this a very attractive time to buy. This renewed market activity is a “key indicator” to the return of a more stable and balanced market. Of special note, the Big Sky market has experienced increased showings and a renewed buyer interest after having a very flat 2007. I have always thought that good snow conditions can cure a lot of economic woes. And the simple fact is the more foot traffic we have in Big Sky, the stronger business activity we will have across our region.

Let’s take a look at a few of the numbers from 2007. Also, please see the companion piece by Nicole Ritter in this issue of BTB which further explores and analyzes the numbers. All information is compiled from the Southwest Montana Multiple Listing Service (SWMLS).

Within the Bozeman city limits, the condo and townhome dominance trend continues to grow. For the third straight year, attached housing sales have surpassed single family detached housing. Both affordability and availability drive this ever increasing market segment. There were 425 condos and townhouses sold in 2007 which compares to 433 in 2006. Average price for in-town condos and townhouses was $234,936, up slightly from 2006’s average of $228,269. There were 331 single family homes sold with the average price reported at $337,683. For 2006, this same category included 379 sales units with an average price of $348,766. Even though average prices are down year over year, 2007’s average of $337,683 is up by 8% from 2005’s average of $312,723. It is important to stress that average sales prices are impacted by many factors, including land prices, building costs, design trends, square footage, etc. and have no direct correlation to appreciation or depreciation rates.

Statistics from the City of Bozeman ’s Building Division website show a noticeable increase in the new construction trend. The city issued 758 housing unit permits in 2007 compared to 670 in 2006. Furthermore, the total valuation of all building permits for 2007 increased to $243,751,248 from $192,676,993 in 2006.

The Belgrade market area is one of the more stable in our region. Belgrade ’s available residential inventory has actually decreased in the past year. As of January 1, 2008, there were only 147 single family homes available for sale in comparison to 153 at the beginning of 2007. Condo and townhome inventories are down as well from 54 units to 37. Lower supply is another “key indicator” to market stabilization. Belgrade serves many first time buyers, with an average sales price $50,000 lower than within the Bozeman city limits. The number of single family homes sold in 2007 decreased slightly to 268 from 284 in 2006. There was also a small decrease in the average price from $295,397 to $284,834. The Belgrade condo and townhouse market has slowed also in the number of units sold from 163 in 2006 to 114 in 2007, but it shows an almost 5% increase with the average sales price rising from $149,375 in 2006 to $156,499 in 2007.

The Livingston/ Park County market is also worth noting. Although the in-town single family home sales decreased in the number of units, the average sales price rose again last year to $212,773 from $203,772 in 2006, an increase of 4%. The in-town condo and townhouse market, an emerging trend in Livingston , experienced substantial growth in the number of units sold with an increase from 19 units in 2006 to 37 in 2007. The average price also increased to $171,686 in 2007 from $141,134 in 2006. The rural areas of the Park County market showed slight decreases with the total number of residential transactions declining from 74 to 68 last year. However, the average price in this segment did increase from $349,368 to $357,731.

Sales of vacant land and subdivision lots slowed substantially in 2007, caused in part by record numbers of existing homes for sale. Within the Bozeman city limits, the average price increased from $114,637 to $137,691 (a jump of 20%). Please note: this statistic also includes a number of multi-family lots and does not reflect an average sales price for a single family lot. The average sales price of land in the surrounding Bozeman area increased by 43%, and Park County experienced a 21% increase in average price. There is still an abundance of inventory in this market segment from subdivision lots to large acreages in all price points. In the city of Bozeman as of year-end there were 654 available lots for sale and in the area immediately surrounding Bozeman , 618 available lots. Belgrade had 174 lots for sale, and the Manhattan/Three Forks area had 661 lots in inventory. The good news for buyers is ample availability and choices.

In conclusion, it is important to always keep in mind that the numbers reported are somewhat inconclusive when telling the whole story. There are many “pockets” of price ranges that are faring better than others or even certain neighborhoods that go against the norm of the market as a whole. Luxury and specialty properties are bucking the national trends with water amenities and larger acreages in high demand. Positive market signs include our growing employment base coupled with extremely low unemployment and continued national attention for the region as a prime retirement and second home location.

Robyn Erlenbush is owner of ERA Landmark Real Estate (with offices in Bozeman, Big Sky, Livingston and Clyde Park) and Intermountain Property Management. She can be reached at robyn@eralandmark.com.

Visit us at http://www.eralandmark.com/ and http://www.StuartandSally.com/

Bozeman & Missoula, Montana Named “Best Fishing Towns in America”

Field & Stream Magazine has named Bozeman & Missoula, Montana two of their “Best Fishing Towns in America“.

Others on the list:

1. Glenwood Spring, Colo. The Hub of Colorado Fishing
2. Mountain Home, Ark. The Big-Fish, Easy-Living Town
3. Traverse City, Mich. A Freshwater Wonderland
4. Bozeman, Mont. Montana’s Fly Capital
5. Minocqua, Wis. The Town Where Everybody Fishes
6. Apalachicola, Fla. The Way Florida Used to Be
7. Nantucket, Mass. The Original Fishing Town
8. Bend, Ore. The In-Place for the Outdoors Crowd
9. Guntersville, Ala. The Bass Fishing Mecca
10. Morehead City, N.C. A Perfect Blend of Fresh and Salt
11. Missoula, Mont. The Town that Popularized Flyfishing
12. Ely, Minn. The Gateway to the Boundary Waters
13. Page, Ariz. A High-Desert Angling Community
14. Driggs, Idaho The Flyfishing Hot Spot
15. Jasper, Texas The Texas Bass Hub 
16. Tahlequah, Okla. The Multi-Species Southern Municipality
17. Beaufort, S.C. A Saltwater Paradise
18. Eufaula, Ala. The Bass Lake Town
19. Redding, Calif. Cali’s Trout Capital
20. Montauk, N.Y. The Town Built on Striper Fishing

Congrats to Bozeman & Missoula for their Fly Fishing Greatness!

And as always: Thanks to Field & Stream Magazine!

The Automatic Homeowner

In his follow-up book to the bestselling The Automatic Millionaire, David Bach has taken his winning strategies to the next level with The Automatic Millionaire Homeowner, a guide to assist with building wealth through real estate. According to Bach, the plan is quite simple, it works in any market, and it has been thoroughly time tested to work. For years, Americans used their investment dollars in the stock market to grow at a steady pace. When drastic changes occurred, much of that money moved to investment in the real estate market. The purchase of primary residences, home improvement projects, and the investment in second homes all witnessed steady growth as people’s wealth became heavily tied to their homes. The bottom line of Bach’s process is to buy a home, live in it, build wealth, get great tax deductions, and retire rich. Sound too good to be true? The emphasis, however, is that to truly follow this philosophy, it is not about booms and busts in the real estate cycle or timing the market to take advantage of trends, and certainly not to get rich overnight. It is understanding the fact that real estate is not a passing trend, and “as long as you’re alive, you have to live somewhere.” The real wealth building comes from a lifetime of homeownership.

Unfortunately, people often are drawn to schemes and plans with the promise of doing little and receiving much in return. Sometimes it really works, but most of the time it ends up with less than the desired effect. Buyers who flocked to speculative real estate markets to purchase preconstruction homes in order to “flip” quite often found this out firsthand. These situations are what have received much media attention while those who use real estate wisely take the back seat.

So, how do you build real wealth in the real estate market without becoming overleveraged? The key is long term commitment, making sound decisions, and putting yourself in the right mindset.

Some basic action steps to getting on the right road are included below:

Meet with a mortgage professional, whether a mortgage banker (direct lender) or a mortgage broker (independent consultant who will shop your loan with various lenders). Find someone who is knowledgeable and who you trust.

Chose the right type of mortgage to meet your personal needs. There are many options available including fixed rate, adjustable rates, low money down, etc. Ask enough questions to know the pros and cons of each type.

Get the best deal on your mortgage. Shop rates. Know your credit score. Obtain your credit reports and review thoroughly for accuracy.

Find the right home for your situation. What kind of home are you interested in? Where do you want to live? Use the internet to assist in research. Give yourself a “dream with a deadline.”

Work with a great real estate agent. The key things your agent should do for you is listen, help you find out how much you can afford, narrow your search, educate you on the market, assist with price determination and comparable properties, assist you through appraisals, inspections and closing.

Make the mortgage payment automatic. Paying off a mortgage early can save an extraordinary amount of money in interest fees. For example, splitting a monthly mortgage payment into two biweekly payments can cut 5-7 years off of the length of a 30 year mortgage and save tens of thousands of dollars in interest. The difference in your monthly budget will be so gradual, but the payoff is immense.

With negative real estate tales at the forefront in the media, Bach gives a final bit of advice to “bubble proof” your real estate plan and survive potential downturns. First, make sure you can afford your mortgage. Don’t depend on possible sources of additional income or hope that adjustable rates will not rise. Make sure you have financial resources in place to ride out a cycle. Next, think local. Always keep in mind that the national market is irrelevant to you. Then, always get the facts. Know the local market inventory, prices that homes are actually selling for, and the amount of time that homes are staying on the market. Also, never purchase just in order to “flip” the home in hopes of a quick profit. Finally, know that in most cases, time cures all. Patience is the ultimate virtue in real estate.

Robyn Erlenbush is owner of ERA Landmark Real Estate (with offices in Bozeman, Big Sky, Livingston and Clyde Park) and Intermountain Property Management. She can be reached at robyn@eralandmark.com.

Visit us at http://www.eralandmark.com/ & http://www.StuartandSally.com

Thanks to Robyn!