I want to come back but have questions (Anchorage, Fairbanks: real estate, property taxes)

[MissingAll4Seasons]

I lived in Anchorage for a year in 2000 and (unfortunately) had to move back to Seattle. Now, my husband and I are looking to escape Seattle and AK is on the top of our list along with NH. I'm looking for any information that I can find about so I can make a better comparison and determine which is the better course for us. So a little about us:

We're not yet 40 and have no children (none expected either). My husband has several years experience with IT and software design & engineering (currently working for the evil empire in Redmond - you know who I mean). I am autistic, and may be on SSDI beneifts soon, so we're not too concerned about work for me at this time.

We are looking for a home with 10+ acres of quiet and solitude outside of the city, but within a reasonable (less than an hour) distance to somewhere hubby can work -- I'm assuming Anchorage or Fairbanks for higher paying IT jobs. Our only real concern with living in a more remote area is having cable/satellite TV and high speed internet access. We both love the winter, so snow/ice/wind/chill/darkness is not a problem. I'm actually looking forward to it again -- hence why AK & NH are really the only states on our list!

I've been digging around on the real estate sites and think (assuming Anchorage is our best bet work-wise) that we could easily manage a place as far east as Palmer/Sutton or north as Wasilla/Willow -- but I've been noticing that there is some very nice property available in Big Lake and Talkeetna, just unsure if that's too long or perilous a commute and whether high-speed services are available out there. Also wondering if there are IT companies up there that offer some sort of telecommuting arrangement instead of needing you to be in the office everyday (especially with random weather issues)?

We'd really love to have an energy-efficient home with alternate energy or entirely off grid if necessary, and would be willing to buy vacant land and then have a modular (not manufactured) home built on it to our specs. Is it possible to have an alternate energy home in AK with most of the modern conveniences? Are there any eco/modular home builders recommended in the area? A climate-controlled greenhouse/hydroponic garden would be really wonderful because we need our fruits and veggies all year round without paying an arm or leg for them. Keeping sheep, goats & chickens is also something we're thinking about. Again, totally unrealistic in AK?

What are the property taxes like up there? I rented the last time I lived there, so I have no clue about this. Roughly, for comparison, how much tax could we be expected to pay on a property worth $500k? Are there other "hidden taxes" we should be aware of? I know that there is no state income or sales tax, but what's the overall tax burden like? I've heard it's the lowest (around 6.6%) in the country, but I think they are offseting the burden numbers with the PFD checks.

I think that food costs are about the same (slightly higher for some things) in AK compared to WA, which I know is due to shipping costs. Same goes for some of the bigger household items that cost a lot to ship from the lower-48... so we might bring a lot of our stuff up with us instead of restocking down there (U-Hauling it if more cost effective?). What about standard utilities like electric, gas, phone, cable. internet? Gasoline (it's almost $4/gallon here in WA)? Would it be better to buy a new vehicle here or wait until we're up there?

Anything else you can think of, I'd be glad to hear! Thanks for sharing your info and helping me an hubby make the best decision.

[Marty Van Diest]

A couple thoughts. As was mentioned before, it's not really feasable to have a greenhouse operate year around, unless you want to pay an arm and a leg for your groceries. It's a lot cheaper to ship them from Argentina than to grow veggies in your own greenhouse in Alaska in the winter.

As far as a job, is it possible for your husband to telecommute? I sold a property to someone who does IT work for someone in Texas. He lives on 40 acres up in the mountains in a beautiful log home. But he works for a company in Texas...I don't know the company. He flies out a couple times a year for one on one meetings.

10 acres plus in the Wasilla-Palmer area is possible, but prices are a lot lower in Willow-Talkeetna.

If you are willing to take the plunge for off-the-grid living, I can give you some contacts for consultants. They have a fantastic set-up with wind and solar. They rarely crank up their generator. Their house has all the conveniences of home but none of the noise. Except when the winds are gusting to 100 and their wind generator is howling like a banshee.

Green building costs $$$. Unless you also simplify and "smallify", (there must be a word for that but I can't think of it).

[MissingAll4Seasons]

Thanks Marty! Please PM me those off-grid contacts because I'm interested (even if it is a bit more expensive). We don't really need a lot of space, could easily manage with 1,000 sq ft (maybe less). We are looking to simplify a lot in our lives.

It may be possible for him to telecommute at his current job, but I'm not holding my breath on that one. But if he could find a telecommuting position with a company either in the lower-48 or AK, that would be even more ideal as long as we have access to high-speed internet wherever we end up.

[Metlakatla]

You'd probably like Talkeetna but it's too long for a commute--it's 14 miles off mile 99 on the Parks Highway---and dark in the winter, moose lunging onto the highway.....Big Lake is closer to Anchorage than Willow, might not be such a bad choice.

[Glitch]

If your highest priority is not to spend more than an hour driving to or from work, then you don't want to live any further from Anchorage than Chugiak. It is an hour drive to Anchorage from Wasilla/Palmer under perfect conditions. Meaning, in the summer on a nice sunny day with schools out for the summer and not too many tourists on the road, you can make it to Anchorage from Wasilla/Palmer in about one hour. During the winter it can take anywhere from 1.5 hours to 3+ hours each way depending on the conditions.

With that said, the further you are from Anchorage, the cheaper the land will cost. Land values have tripled in the Mat-Su Valley since 2003. In 2003, one acre would cost you $10,000. In 2007, that same acre will cost you $30,000. Even though land values have tripled, the value of homes have declined slightly (less than 1%) over the same period. The mil rate in 2007 for the Mat-Su Borough was 14.014 mils. It hasn't been calculated for 2008 yet. Assuming it remains unchanged, on a $500,000 home that would be $7,007.01 in property taxes per year.

Buying a home that has a 5-star energy rating isn't that difficult, there are a lot of them in the valley. It will also reduce your interest rate by 0.25%, so it is worth looking into.

The median price for a home in the valley (on an acre) is around $215,000. The median price for a home in Anchorage (on one quarter acre) is around $265,000. For many the price difference, the amount of land, and the solitude is worth spending an hour or longer daily drive to and from Anchorage.

Personally, I wouldn't worry so much about the commute. Yes, it is a pain in the behind (particularly in the winter), but you can buy land a lot cheaper; everyone is on one acre or larger; and you don't have city traffic making constant noise.

Satellite TV (Dish Network or DirecTV) only works well in the valley if you have a 3 meter or larger dish. One meter dishes are too small and will only give you sporadic service at best. You also have the option of going with DTV, which is provided via your phone line by the Matanuska Telephone Association (MTA). Also, in some areas you can get Cable from GCI. DSL is also available in the valley, and in limited areas Cable Internet access.

[stiffnecked]

I noticed the OP's moniker. I miss all four seasons too. The beginning of winter, the middle of winter, the end of winter, and summer. It seems like here in south southeast we have 2 seasons. The rainy season and the not so rainy season.

[MissingAll4Seasons]

Originally Posted by stiffnecked

I noticed the OP's moniker. I miss all four seasons too. The beginning of winter, the middle of winter, the end of winter, and summer. It seems like here in south southeast we have 2 seasons. The rainy season and the not so rainy season.

Yes, here in Seattle we have "cold/gray/rainy" season for 9-10 months and "warm/drizzly/humid" season for 2-3 months. I miss autmun, winter and spring. I don't care if spring and autumn are short and mostly muddy... as long as the seasons noticeably change. And, of course, that winter actually has real snow that lasts more than a day and that it snows every winter, not just randomly (or in April out of nowhere!).

[MissingAll4Seasons]

Glitch - thanks for all the info... it looks like the property taxes are a bit higher in AK than WA... but $500k gets you a heck of a lot more house and land up there, and the PFD checks and no sales tax more than make up for it. And getting a tax break for E-Star housing is also great... do they also give breaks if you are alternate power (wind/solar)?

I don't personally remember the Palmer-Anchorage drive taking that long... but, hey, driving is an entirely different experience when you're actually moving during your commute Hubby's current commute is 45 mins on average, and that's only 17 miles away! He might be more open to a longer commute if it's not gridlock city traffic like here in Seattle and all he has to worry about is some "mild" traffic, a bit of snow/ice, and those suicidal mooses.

Good to know that MTA offers DTV and Internet (I'm assuming FiOS) in most areas we're looking into. That definitely improves our chances of telecommuting if it comes to that. I'm not holding my breath that GCI is going to be available outside the immediate Anchorage area, although we might "luck out"... but MTA is pretty much everywhere along the highways and a much better bet. (Besides, MTA is a perspective employer for hubby... I'm sure they wouldn't make us do without )

Met - I'll look into Big Lake again, I was only concerned because it wasn't right off Parks Hwy and I was concerned about the winter conditions of the smaller roads. But it is a little closer to Anchorage and there are some nice properties in the area. I've made the moose issue very clear to my husband (who freaked out with the buffalos in Yellowstone)... poor baby is from England, the biggest animals they have there, that aren't in a zoo, are horses!

[RayinAK]

Glitch:

What fuels are used in the "valley" area? Heating fuel, or natural gas? The reason why I asked is because heating fuel in the interior, and near Anchorage I imagine, costs around $4.00 per gallon. The fuel company topped my 500-gal. tank a couple of days ago, and 300 gallons cost me $1,200. I am up to $800.00 per month ($9,600 per year, electric and fuel) for a 5-star home of 1,700-Sq. foot living space. It also has a 2-car heated garage on the first level. My neighbor is already at $200.00 more per month than me on a similar home. It means that the PDF does not put a dent on the cost of utilities around Fairbanks, although it helps a little on property tax.

I am in the process of removing the fireplace and installing a modern wood stove to offset some of the heating and electrical cost, as well as replacing the boiler's blower with a more efficient one. The initial cost will be high at around $4,000 (if I do it myself), so any benefit felt will be in the long run.

[Glitch]

Originally Posted by MissingAll4Seasons

Glitch - thanks for all the info... it looks like the property taxes are a bit higher in AK than WA... but $500k gets you a heck of a lot more house and land up there, and the PFD checks and no sales tax more than make up for it. And getting a tax break for E-Star housing is also great... do they also give breaks if you are alternate power (wind/solar)?

I don't personally remember the Palmer-Anchorage drive taking that long... but, hey, driving is an entirely different experience when you're actually moving during your commute Hubby's current commute is 45 mins on average, and that's only 17 miles away! He might be more open to a longer commute if it's not gridlock city traffic like here in Seattle and all he has to worry about is some "mild" traffic, a bit of snow/ice, and those suicidal mooses.

Good to know that MTA offers DTV and Internet (I'm assuming FiOS) in most areas we're looking into. That definitely improves our chances of telecommuting if it comes to that. I'm not holding my breath that GCI is going to be available outside the immediate Anchorage area, although we might "luck out"... but MTA is pretty much everywhere along the highways and a much better bet. (Besides, MTA is a perspective employer for hubby... I'm sure they wouldn't make us do without )

Don't forget about the Knik-Goose Bay road. There has been a lot of development along that road in the past few years, and it is well travelled all year round. Settler's Bay is a nice area, about 8 miles west of Wasilla down the Knik-Goose Bay road, complete with its own golf course. When/If they finish that "bridge to nowhere" it is only 15 miles to McKenzie Point from Settler's Bay. That would save you 70+ miles of driving every day.

The valley has really expanded in recent years. Wasilla is the fastest growing town in Alaska. There are more than 30,000 commuters who make the trip from the valley into Anchorage and back every day. In the winter it is not uncommon for traffic problems at the Eagle River on-ramp to back up traffic for miles to Chugiak or even Peter's Creek. After a moderate snowstorm dumps 6" or more, you can expect 1.5 to 2 hour delays for the next day or two. The last 15 to 20 miles into Anchorage you will be driving between 5 to 15 mph until you pass Eagle River, then traffic picks up a bit.

Personally, if I find traffic at or near a stand still by the time I reach North Birchwood, I turn around and go home. I also never drive the day after the first snowfall. Too many first-time winter drivers makes it very dangerous.

There is no discount for producing your own energy, but you can sell your excess energy back to MEA. They are required to buy it from you.