Round Rio Rancho

Michelle and Kelley Webb talk about selling their home in Rio Rancho.

Q: I drive up and down Unser Blvd. practically every day, and I’ve noticed crews working on the 4-plexes that were never finished near Abrazo and Unser. What are they going to do with that project? Can I buy one of the buildings for investment when they are done? Larry in Rio Rancho

A: We’ve been asked about this project every month for the last couple years, and we’re happy to finally be able to give an uplifting answer! First, here is the history of the project: The units were originally built as standalone 4-plexes to be sold individually to investors. The construction was being financed by First Community Bank. First Community was closed by NM State Regulators in January 2011 and sold by the FDIC to U.S. Bank. When the bank closed, the builder’s access to the funds needed to complete the project disappeared. Since First Community was closed due to allegedly making bad commercial real estate loans, US Bank couldn’t very well make the same mistake, so the project was effectively shut down. The buildings were foreclosed upon and sat, deteriorating for a long time. They were purchased by the Lissoy Family Trust in the Summer of 2012 and planning to complete them was begun. Engineers evaluated each structure, some of which were pretty much completed, and some that never even got wrapped and stuccoed. According to Scott Lissoy, who is heading up the project, any deteriorated materials have been repaired or replaced and interior work is progressing.

The project’s original name, Puerto del Sol may or may not survive, but the owners have big plans. 18 additional buildings are underway, for a total of 128 units when the project is complete. None of the buildings will be sold, as was the original plan. All will be leased to tenants, starting in Spring, 2013. The new plan includes a clubhouse with a gym, a tot lot and an outdoor pool. All the units are 3 bedrooms, 2 baths and between 1040 and 1140 square feet. Each unit will have a single carport for covered parking. The upstairs units will have a fireplace and vaulted ceilings. Plans call for upgraded kitchens with slab granite counters, stain grade cabinets and stainless steel appliances. Some of the upstairs units should have really great views of the Sandias as well. It sounds to us like this will be a great final outcome for this project, which has been an eyesore for so long.

Q: My husband and I are considering selling our home in 2013. We are concerned about the 3.8% “home sales tax” which was buried in the ObamaCare bill. Our home is worth about $200,000 and we’ve lived in it for five years. A tax of $7600 would probably take almost half the profit from our sale. Is there a way to keep more of our profits? Marie in Rio Rancho

A: We have good news for you. You should get to keep all the profits from your home sales! There has been a lot of misinformation disseminated about this tax. Although we are not CPAís, the National Association of Realtors has produced several publications explaining it. We will use an example from their materials.

First, the tax is not on home sales, but on investment income – interest, dividends, rents (after expenses) and capital gains (less losses). There are also exclusions and income limits before the tax is applied. For instance: If your adjusted gross income as a couple is under $250,000 (or $200,000 for an individual) the tax would not apply. If you don’t make this much money, you can stop reading now. For the 3% of the population nationally that does earn this much, let’s go on. Say you sold your primary residence for $825,000. If you purchased it for $300,000 ten years ago your taxable capital gain after taking your $500,000 couple’s personal residence exclusion would be $25,000. ($825,000 – $300,000 = $525,000 – $500,000 exclusion = $25,000 capital gain.) The 3.8% tax would apply to this amount and you would pay $950. That’s not too bad after a $525,000 profit, right? These calculations get a little trickier when dealing with rental income from investment real estate, so we won’t go into that. This is why you have a CPA!

Bottom line, only a small percentage of people make enough income to even consider this tax law. Even those only need look at their investment income, not their earned income, or income from employment. Good luck on your home sale.

4 Bedrooms, 3 Bathrooms, 2270 Square Feet 2 Car Garage

This custom home by Firebird is some of their best work! The Master Suite includes a Large Triangular Jacuzzi Tub Surrounded by Cultured Granite, and a Tiled Walk in Shower. The other bedrooms are in a separate wing, with a Guest Suite plus 2 additional bedrooms for a total of 4. The spacious kitchen has all Stainless Steel Appliances, Thick Granite Counters , an Island and a Huge Walk in Pantry. The entire half acre lot is landscaped, and has beautiful views of the Sandias. You will love it!

4 Bedrooms, 2 Bathrooms, 2191 Square Feet

One of the nicest homes we have seen in this neighborhood! The spacious kitchen has a Kitchen Aid pro-style stove, Corian solid surface counters, and a huge island. Inside, the upgraded light and plumbing fixtures, fans and decorator paint will wow you. Plug into the surround sound speakers in the living room. Step outside to enjoy the pergolas in front and back, extra high block walls, a producing vegetable garden, a huge dog run and a clear view of the Sandias. Dont miss this one!

4 Bedrooms, 3 Bathrooms, 3465 Square Ft

Do you have a big household? Then this may be the house for you! This custom home sits on a half acre lot that backs up to Chamisa Hills Golf Course. The owners have invested in this home, so you will not need to. You will love the long granite counters in the huge kitchen, the stainless steel appliances, the pellet stove in the spacious family room and the tiled wet bar. New windows and sliding doors were recently installed, significantly upgrading the homes energy efficiency and beauty.