Investing in NH Real Estate | 2008 Market Analysis.

  Investing in VT Real Estate | 2008 Market Analysis | Real Estate Investing 2008 Market Analysis
Real Estate in
New Hampshire
Belknap NH
Carroll NH
Cheshire NH
Coos NH
Grafton NH
Hillsborough NH
Merrimack NH
Rockingham NH
Strafford NH
Sullivan NH
Real Estate in
Vermont Counties
Addison VT
Bennington VT
Caledonia VT
Chittenden VT
EssexVT VT
Franklin VT
Grand Isle VT
Lamoille VT
Orange VT
Orleans VT
Rutland VT
Washington VT
Windham VT
Windsor VT
Real Estate in
Barnstable MA
Essex MA
Franklin MA
Middlesex MA
Suffolk MA
Other MA
Worcester MA
Real Estate in
Maine Counties
Oxford ME
Washington ME
York ME
Other ME
Now is a great time to invest in NH waterfront real estate

. The probability of real estate outperforming all other investments is extremely high. For the last 7 years real estate investment trusts or REITs have out performed all other major equity benchmarks as the newest data was reported in January of 2008 by the National Association of Real Estate Investment Trusts. So you could invest in one of these funds or you could take this as a sign that now is the time to make your move in the highly desirable real estate markets like the NH Lakes Region.

The major thing to consider is its location. The property must be in a highly desirable location for it to be assured of future equity growth . Resort and Waterfront properties have held their values and in many cases have continued to increase in value. But the property must have owned water frontage to be the most likely to weather any further fall out in the financial markets. This area and others in Vermont will increase in value because foreign investors and other speculators will be drawn to an investment that is secured by real property.

An example of this are land and lots that are on a NH Lake that is almost all built up. To make the land a good investment it should have waterfront rights, preferably owned water frontage on a desirable lake. For example there are 21 waterfront owned land listings on Lake Winnipesaukee, but there are currently no waterfront owned land listings on Lake Winnisquam. So as you can see the available Land in the New Hampshire lakes region is quickly becoming depleted. there are currently only 21 NH lake front owned land listings statewide in the NH MLS But the downside to land is if it carries a mortgage there is no source of income to offset the expenses of taxes and the mortgage itself.

Homes and Condos offer the opportunity for income to offset the expenses, and build equity for you regardless of their current market value. With the property held in a self directed real estate IRA account the benefits can be more impressive but, there are some steps you need to follow to setup this kind of retirement account and there are a lot of rules the IRS has in place for making this kind of investment. So you need to research a good administrator for your IRA.

The Simple way to build wealth in this type of investing is to follow the basic real estate investing rules.

1 buy property with the best upside potential, not always the cheapest. Upside potential can be found in a property that is in need of updating, and minor repairs, landscaping, or a better paint color scheme. The price will be a little lower that comparable listings, but the days on market will most likely tell you the story. the average days on market for 2007 in the lakes region was 140, but this includes all of Belknap County. We will tell you the listing date from the MLS but if the property was listed by one agent and then re listed by another agent then the list date is reset to the days that the new agents has it. if you see a listing the interest you we can tell you the whole listing history in a report that we will send you after you contact us about it.

For example, if you purchase a there are currently 12 waterfront homes with owned frontage and docks or other amenities, for sale on Lake Winnipesaukee that you can buy for under $600,000.

So lets do some numbers. With a down payment of 5% and an interest rate of 6% with taxes and insurance you pay $4240 per month. Since most of this in the first 10 years is interest almost all of this is deductible, and so not only will there be no rent income to be taxed it will most likely be a loss against your current income, and this does not include depreciation.
So lets say you rent the home for 10 months and you stay in it for 2.Wwith your own private beach area the rental income would be about $1100 per week in off weeks and $1800 per week in peak season. So if you earned $45,000 in rental income subtracted from the PTI payment of about $60,000 equals $15,000 or $1250 per month. If you hold the property for 15 years, you would have about $300,000 paid in principal and the estimated value would be about $900,000. For a return of $600,000. And this does not count for rental revenue going up, which it is, and so by the end of 15 years you are most likely covering all your expenses, and making even more than this projects.

But it even gets better if you move into the home after 20 years and it becomes your primary residence, you stop taking depreciating for the next 3 years, and then you refinance what would be about $200,000 or less in principal you monthly note would be very low and you would have about $700,000 in your pocket! that is a great return on your investment of $300,000 cash, or less, which you wrote off over that so it most likely reduced your taxes by thousand per year.

If these number are unaffordable there are waterfront listings starting at, $349000 that can get you started .

The above article is written as in dependant observations of the real estate market by the author who is not a real estate agent or a financial advisor, and should not be considered to be advise, or recommendation or endorsement of any action on your part. For specific consultation, you should contact your financial advisor, or one of our realtors.

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Copyright © 2017 New England Real Estate Network, Inc. All rights reserved. This information is deemed reliable, but not guaranteed. The data relating to real estate displayed on this Site comes in part from the IDX Program of NEREN. The information being provided is for consumers´ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data last updated December 18th, 2017
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