Real Estate March 17, 2015

Downsizing in Paradise

As outlined in a recent CNBC article many aging homeowners feel that the idea of downsizing is an attractive one. Homes with single level floor plans, good walkability to conveniences, low maintenance design, and security features are some of the most popular amenities desired and mentioned in the article. Developers certainly recognize what’s important to the downsizing segment of the real estate market and have been working on making the dream happen.

Two of Santa Barbara’s newest developments, Alma Del Pueblo and White Rose Lane, have taken into consideration what downsizing buyers have expressed interest in. Both offer single level floor plans and are in great walking locations. Smart design coupled with new construction also means low maintenance for years to come.

Alma del Pueblo

Alma Del Pueblo

White Rose Lane

White Rose Lane

With the many lifestyle advantages downsizing brings you might expect to see more development and sales of such convenient rich properties. Undoubtedly all good things come with a price, and luxury “move down” properties are no exception. A new 2 bedroom 2 bathroom Alma Del Pueblo condominium in the heart of Santa Barbara starts at $2.6 million, and a new 3 bedroom 3 bathroom home on White Rose Lane sports a price tag close to $2 million.

Housing sticker shock is not something new to Santa Barbara, although it has not typically been such a dilemma for potential move down buyers as it’s shown to be now. To complicate matters further, selling an expensive home which has been owned for years can cost an owner quite a bit in capital gains taxes. Other challenges include the potential increase in property tax base under some circumstances, and tough income qualifying standards if a loan must be obtained.

Downsizing is a simple concept, however with current tax rules, inflation, and financing regulations it can turn out to be a more complicated puzzle. Unfortunately lifestyle choices and dreams have been put on hold for many who have not found the right answers. If you find yourself in this category I welcome your inquires and the opportunity to assist you in succeeding with a comfortable lifestyle property transition. Quality of life is something we can all cherish and preserve in Santa Barbara.