Archive Monthly Archives: January 2016

Are your New Hampshire Real Estate Taxes high?

Are your New Hampshire Real Estate Taxes high?

Your RE Tax bill is based on two things, the Rate and the Valuation. It’s unlikely you’ll be able to change the Rate which is up to $24. per thousand dollars of valuation. (Example $300,000. property at $24./thousand = $7,200. annual tax bill).

But you may be able to change the valuation. If you know it’s not accurate, If you can prove it and convince your City/Town Tax Assessor.

Wednesday, January 27, 2016 6:30-9:00pm we’ve got Tax Abatement Specialists that will show you how this is done and how they can do it for you. This may not be a big expense for you High Rollers but it’s significant to me which is why I review my properties every year (within the VERY limited time we have to File an Abatement).

We meet at Martha’s Exchange, 185 Main Street, Nashua, NH 03060 No charge to members, Only $10 for guests or Only $99/year to join

Market Update, Light refreshments/Cash Bar

*We’ll learn How Property valuations are generated.

*What to do as soon as you feel these values are not accurate. Most of our Cities and Towns provide great service for the Real Estate Taxes that we pay. Often times we take these essential services (Water, Sewer, Police and Fire Departments and Schools) for granted. But there is no sense in paying more than your fair share.

*When do you file for an Abatement.

*What should be included.

*When do you seek Legal Representation in this process?

Which meetings do I attend?

Hey Guys, sorry you may have been disappointed at another REIAs meeting. I’ve found that often there’s some difference between the introduction to an upcoming event and what actually takes place. Here’s how to know Which meetings do I attend? What I usually do, is mention what I’m bringing and what I’m looking for on the Meetup RSVP. Big difference when I get there! Folks are looking for me, to do some business.

As far as selling speakers, everybody has them, even those that say they NEVER have them;-) We just had a gentleman that spoke at our main meeting, then did a 3 day BootCamp here on the North Shore for only $997. (what college can you learn a new profession at, that you can make money on, for that low price? Northeastern is about $40k/yr.). The BootCamp started with a day of instruction, then a day of field work (which consisted of driving to 10 Foreclosures and picking out other properties that were “Hidden Market” opportunities where there was NO competition (26 more)). We’re still following up with Offers and Counter Offers on them. The third day was spent at the Registry of Deeds where we researched Titles for liens and addresses of owners.

I’m kind of new to this, I only started working with REIAs in 1985, but I do know who the good speakers are that bring value to our members.

Mike Hurney

PS 1/26/16 Real Estate Tax Assessor speaks on value and how to get an Abatement, and Home Staging expert getting another $10-26k on your sale.

Interesting Movers and Shakers 1/1/2016

Last Friday we met for our Movers and Shakers 1/1/2016 at Dennys. The consensus on the Real Estate market for 2016 is that:

New listings are not coming on the market quick enough to subdue price increases and that will continue. It’s a Sellers Market.

Rentals are scarce and Landlords will continue to raise rents. This may drive renters to purchase while interest rates are still low. It’s a Landlords Market.

We analyzed a 3 family in Salem that seemed underpriced. First we used the Comps (comparable recent Sold properties similar to our Subject property and within a 1 mile radius). Next we looked at repairs and potential profit to structure a Strategy and Price. Finally we looked at Condo (Comps) similar to each of the 3 Apartments to value this deal for “Highest and Best Use”.

Not a bad deal, Good Luck Rich!

average lifespan of Appliances

Happy New Year everybody!

Sometimes it helps to get organized, as you may be finding out as you put your 2015 financials together to file your Tax Returns;-)

Within the next week I’m going through all my properties to inventory all the Appliances. There are several benefits for doing this. Your Tenants will appreciate your concern for the property. They can request repairs and upgrades which could help justify your next rent increase. You could catch something that needs to be fixed before it gets too costly like a small leak. This is what most Companies in Business call PM (Preventative Maintenance) and should prevent ReActive repairs and costs vs ProActive repairs.. Finally you’ll be organized and this will help justify keeping a reserve account.

Another tip – Mr. Landlord suggests buying a $5. Battery operated water sensor to place under any Kitchen or bathroom sinks.

We’re all supposed to replace the batteries in our Smoke Detectors when Daylight Savings time ends. If you haven’t, this might be the time to either replace the Detector (and CO Monitor) or Batteries. There was recent case here in Massachusetts where a couple in a duplex passed away from carbon Monoxide poisoning. I’d hate for that to happen to anyone I know. So as you’re weighing the inconvenience and cost of doing this inventory, consider the potential downside…

OK here’s my checklist:

Boiler/Furnace – Model #, Serial #, Age, Condition.

Water heater* – Model #, Serial # Age, Condition

Toilet – Low flow? Age (underside of the tank cover). Running?

Dishwasher – Model#, Serial #, Age

Range – Model#, Serial #, Age

Refrigerator – Model#, Serial #, Age

Garbage disposal – Model#, Serial #, Age

Smokes/CO monitors – Model#, Serial #, Age, Batteries changed __________

*Lately I’ve found my water heaters notoriously fail (leak) just after their Warranty ends (usually 6 years). You may want to check your water heaters for ANY small leaks which seem to start just before the Warranty ends and get a new one from the manufacturer.

 

By the way, According to the National Association of Home Builders (NAHB) the average lifespan of Appliances is:

Dishwashers – 9 years

Gas and Electric ranges – 13 years.

Refrigerators – 13 years.

Garbage disposals – 12 years.

Water heaters – 10 years

Selling – By the way data from Remodeling’s 2015 Cost vs Value Report estimates that upgrading just the Kitchen and Bathroom alone can produce a 48-60% ROI , respectively. Just be sure that if you do one, the other should be brought up to the same level or buyers will notice a mismatch right away.

Buying – While you’re at your properties, as we know from our recent “Hidden Market” BootCamp, take a look around. There may be something ready to be your next Purchase…

See you soon, Mike Hurney, Director NewHampshireREIA.org

PS You may also want to make sure everyone knows where the main water shut-off is and that the electrical panels are marked.