Roche Realty Group

Super Bowl Man Cave

roche-admin — Fri, 03 Feb 2012 01:19:03 +0000

As of February 1, 2012 there were 975 single family residential homes on the market in the Lakes Region communities covered in this report. The average asking price came in at $526,831 with a median price of $249,900. On February 1 of 2011 there were 940 homes available at an average of $545,417 and a median of $279,000. The current level of homes represents a 15 month supply which is the same as last February.

Home is all about the holidays and having friends and family over for parties and celebrations. We have Thanksgiving, Christmas, New Years, and the 4th of July. We also have Super Bowl Sunday which, to many, is probably the biggest non-holiday house party of the year. I think Super Bowl Sunday should be changed to Super Bowl Monday, call it a holiday like it should be, and give people the day off. Production is way off on Monday anyway as hung over employees just pretend to be working. Of course, the game time would have to be changed to noon on Monday or people won’t work on Tuesday and we are right back where we started.

People have always gathered to celebrate big sporting events. I think it goes back to prehistoric times when the cavemen had a successful hunt. They all went into their caves to have a feast, drink fermented fruit juice, and draw pictures of the hunt on the walls. These were the first known flatscreens. Humanity progressed and in the Roman times spectators watched teams of gladiators dismember each other from skyboxes in the Coliseum in Rome. I’m sure there were just as many taverns around the stadiums back then as there are today. These establishments were for those who couldn’t afford the 87 Denarius Roman silver coins that it would cost to buy the equivalent of a $2,500 Super Bowl ticket. Many modern sport fans that don’t make it in person to the big game gather in sports bars to watch the Super Bowl. Fans like to be with other fans and to be surrounded by the trappings of sports; the memorabilia, pictures of stars, pennants, banners, and big screen TV’s. It also helps that the pubs have food and drink which are the key ingredients for any successful Super Bowl party.

Other fans like to gather at their homes and have Super Bowl Parties. Drawing from their prehistoric past and the sports bar, many avid sports fans demand that their home have a properly outfitted Man Cave for these special events. But the Man Cave has become so much more than just a place to gather and pay tribute to sports. It is a retreat to which today’s hunter and breadwinner goes to unwind and gather strength to carry on the battle the next day. While the lady of the home requires a nice kitchen, a walk in closet, and a Jacuzzi tub, the warrior/sports fan of the home could care less. The Man Cave is paramount in his mind. This is an important observation if you are selling a home in today’s market. Do you have an existing Man Cave or is your home Man Caveable? It could make a difference in selling or not selling your home.

I find it my duty to expose the best of the Man Caves on the market to the manly men out there that might be looking to upgrade to something more befitting their station in life. My first selection is at 141 Riverwood Drive in New Hampton. This cave is located in a 6,289 square foot, thirteen room, four bedroom, five bath super high quality, custom built home that would impress even Tom Brady. It has everything a Caveman’s wife would want; gourmet kitchen, granite counters, an open floor plan, a great room with a huge field stone fireplace, a first floor master suite, formal dining room, beautiful woodwork, and exquisite craftsmanship throughout. Who cares! The Man Cave here is over the three car garage and provides ample space for the largest and most intense sport watching get-togethers you can imagine. It features large comfortable leather chairs and couches, a massive widescreen TV, a fully stocked bar/kitchen area with granite counter tops, a popcorn machine, and pool table. A three quarter bath is adjacent so you don’t have to run downstairs at the commercial break. This property is offered at $649,000 and is currently assessed at $761,050. You won’t find a better equipped Cave, plus you get an additional 5,000 plus square feet of space for the missus.

Another truly fabulous Man Cave property I have seen recently is at 109 Hickory Stick Lane in Laconia. This Man Cave is located in the lower level (feels more natural) of a 3,553 square foot, four bed, four bath, high quality home built in 2007 in Country Club Shores. This home also has all the bells and whistles for the ladies including a well appointed kitchen, first floor master suite, tile, granite, hardwood floors, and breakfast nook. The lower level Man Cave is truly great; cork flooring, widescreen, built in Bose surround sound, pool table, and fully equipped bar with a kegerator (beer tap-very important). There’s a separate workout room with an exercise machine that looks like a piece of art (it’s too nice to hang your clothes on it though), and a bedroom in case you can’t make it back upstairs. The downstairs bathroom is what really defines this space. There is a sink and a urinal only—a true Man Bath. This home is manly priced at only $399,900. If you are a true sports fan looking for a new home, you could be there for Super Bowl XLVII. Call me…

By Roy Sanborn, Roche Realty Group

The Future of Real Estate Marketing: Video

roche-admin — Fri, 27 Jan 2012 15:04:01 +0000

By Roy Sanborn, Roche Realty Group

The future of real estate marketing is here now but most real estate agencies and real estate agents don’t know it. Video is playing an important role in marketing both properties that are for sale as well as promoting agents or agencies themselves. According to a recent article by Matthew Ferrara, a well known real estate trainer and technology guru, there were some 200 billion videos watched on internet in October of last year. Videos are everywhere and not just on YouTube which had just 88.3 billion of those views.

Nothing sells products (including houses) like commercials. We are inundated with them on television. But TV commercials are extremely expensive to produce and to broadcast. Videos for the internet vary from amateurish to professional grade and can be produced either inexpensively or with a budget the size of Ben Hur depending on how lavish one wants it to be. The truth is, however, that really good quality videos can be produced relatively inexpensively.

Here are some of the best real estate videos out there on the world wide web:

How about something funny:

Here are several videos that I have produced for my clients, I don’t have a $20,000 budget, but still get a pretty nice product:

See more of these videos at http://www.sellersownwords.com/ and see how they can help you sell your home!

3 Keys to $elling Your Home: Marketing, Price, and the Buyer Pool

roche-admin — Fri, 27 Jan 2012 14:06:54 +0000

By Roy Sanborn, Roche Realty Group

The successful sale of any home in today’s somewhat trying real estate market can be broken down into distinct components that are inexorably linked together; (1) marketing the property, (2) the available pool of willing buyers, and (3) price. Unfortunately, these three components often get blurred and home sellers get confused and discouraged when their home doesn’t sell. They always ask why are so few buyers looking, why has it been on the market so long, and why is no one at least making an offer? Any offer!

It is logical that if you have a property for sale and you market it correctly, at the correct price, that you will eventually get a buyer. That’s the way it always has worked. So what has changed? Well for one thing, there are a whole lot fewer buyers in the swimming pool today. That’s no secret. So what do you do to increase your odds of finding a buyer. The answer really lies with the proper marketing of the home and the price it is offered at.

Buyers don’t generally fall from the sky, although sometimes it appears to be that way. Some have called it divine intervention when one miraculously appears. In reality, buyers are found through the marketing of a home no matter how ineptly or professionally it is done. There was a time when you could put a handmade cardboard sign on your lawn and you could sell the place over the weekend. Those times are long gone and may never return. Ineptness doesn’t work very well anymore unless you put an unbelievably low price on a property. Selling a home today has gotten very competitive and complicated.

The problem is that most sellers don’t know, or understand, how homes are marketed to begin with, let alone which methods are effective. Understanding exactly what your agency is going to do for you and comparing their program to others is very important. It is impossible to assess whether a buyer exists for your home unless you know for sure that your property is being seen by EVERYONE THAT MIGHT BE LOOKING FOR A HOME. Not only that, it must be marketed correctly and in the most positive and professional way possible. Properties that are promoted with a few fuzzy pictures, poor lighting, and even poorer composition combined with vague or incomplete descriptions of the property itself won’t get you far. If your agent relies on local newspaper ads as his primary print advertising component you should plan on living in your home a long, long time. Today you need professional grade photography, full color promotional material, national internet exposure on as many realty sites as possible, social media exposure, color print ads, video, and more. Reports can be provided to home sellers showing the number of times buyers see their home on the internet. So if plenty of people are looking at a property on line but not calling to see it in person, what should the seller conclude? Sellers also need to be very conscious of feedback from agents and buyers that have seen their property.

That being said, if you feel confident that your property is being seen by EVERONE THAT MIGHT BE LOOKING FOR A HOME, and no buyer comes forth to even make an offer, you can probably safely conclude that your price is very likely too high for the current market. If so, it is time to bite the proverbial bullet, swallow your pride, and reduce the price of your home to where it will attract an offer. Generally speaking, there is a buyer for every home at the right price.

Here’s something to think about on pricing. Last year, out of the 773 homes that sold, 50 sold in a week or less. They sold at 97.5% of the original asking price and at an average of 85% of assessed value (based on those providing tax assessments in the MLS). The 61 homes that sold in 8 to 14 days were at 95% of the original asking price and at an average of 88% of assessed value. The 78 homes that sold in 15 to 31 days sold at 94% of the original asking price and 90% of assessed value. It is no surprise that many sales took a lot longer. There were 398 properties that were on the market over 90 days before finding a buyer. These properties sold at 90% of the original list price and at 91% of assessed value. So it appears the better the price, the quicker the sale. You might also argue that you can get more for a property if you list high and play the “let’s negotiate” game. There were also 1,062 properties that had their listings expire without selling in 2011—I wonder if they were all playing that game?

2011 Lakes Region Residential Sales Report

roche-admin — Fri, 20 Jan 2012 19:59:55 +0000

By Roy Sanborn, Roche Realty Group

Sales of single family residential homes in the Lakes Region communities in this report showed a pretty strong uptick in December with 89 transactions at an average price of $306,126. In December of 2010 there were just 59 sales although at a higher average sales price of $369,112. Sales above the $400,000 mark were strong with 15 waterfront sales that closed in December. This was a pretty good finish to the year!

For the year there were 773 residential properties sold at an average price of $306,460 (which was 92% of the average asking price at the time of the sale) and these homes were on the market an average of 147 days. Incredibly, in 2010 there were also 773 sales at an average of $320,898 (which was also 92% of the average asking price) and those homes were on the market for 144 days! Pretty amazing and consistent!

So what price ranges were selling last year and how many days on the market did it take to sell a house? Just over 50% of the homes that sold in 2011 were under $200,000. Homes over $400,000 comprised 18.5% of the total sales and most of them were waterfront properties. As you can see from the following chart, the higher the price range, the longer it takes to sell. Also, remember the days on market shown here only represents the amount of time the home has been listed with the agency that sold it. Homes are often listed multiple times before they sell, so the average days on market is actually higher. But just to show you that you can sell your home in this market 190 of the 773 homes that sold in 2011 went under agreement in a month or less, 112 of those went under agreement in two weeks or less, and 51 were under contract in a week or less.

The following chart shows the average sales prices in each town since 2006 and the percentage change in pricing since the overall peak in 2007. There were seven communities in 2011 where the average sales price when up compared to the average posted in 2010, but the average price for all towns combined dropped $320,898 in 2011 to $306,460. Most towns are still well off the highs of 2007 except for Moultonborough and New Hampton.

The median sales price also topped out in 2007:

So all in all, residential sales in 2011 were pretty much flat compare to 2010 with a slight drop in the average sales price. Hopefully, the strong finish in December will continue throughout the new year!

The Other Waterfront

roche-admin — Fri, 20 Jan 2012 19:49:50 +0000

Post written by Kim Cedarstrom – Roche Realty Group, Meredith

Think of the Lakes Region of New Hampshire and you think…water. Owning your own place for swimming, boating, or just sitting and taking in the view is a dream that anyone who has visited here wants to fulfill. “But owning a waterfront home is just that “a dream” and well beyond my means” is a thought we hear often. But what if you could get access to the lakes without the expense of owning your own waterfront home with its high purchase price, maintenance, and taxes? You can.

Grouse Point

I call it “The Other Waterfront”. Shared waterfront communities, condominiums, and associations are a great way to gain access to the water without the expense of owning a waterfront home. Don’t get me wrong, nothing beats the pride of ownership, privacy, and access that a waterfront home provides. But by sharing the access to the lake, you can have a great home that is more often more affordable and will come without the expenses, taxes, or maintenance of living separately directly on the lake. Shared waterfront communities come in many different shapes, sizes, and configurations. They can be luxurious, gated, prestigious, communities; or associations of former small seasonal cabins, or stand alone homes. Some offer maintenance free living (with appropriate condo fees to pay for that service) – just enjoy. Others let you do your own work, with lower fees that reflect the added level of service that you provide.

Grouse Point MLS 4095369

For brevity’s sake, I’ll only cite currently available properties in Meredith because that’s where I live. But all the towns in the Lakes Region offer their own examples, all different but all offering water access.
Meredith has a wonderful mix of shared waterfront developments. The biggest and arguably one of the finest on the lake is The Grouse Point Club. This is a gated community of 82 acres with spectacular views, three beaches, tennis courts, a 35 slip boat club with moorings, a 7000 square foot clubhouse, and is all connected with golf cart trails. This is obviously a high end example. There are currently four homes for sale in Grouse Point. They range in price from $699,000 to well over a million dollars.

Gunstock Acres

Next door, and at the other end of the price spectrum to Grouse Point, is an older development of a former resort called East Bluff Highlands. Here the homes are smaller A frame chalets and the amenities are few, but the price reflects that. There are two homes on the market priced at $69,000 and $104,400. On Pleasant Street there is a condo at the Loon Watch association that is part of another converted cabin colony. This unit sits right on the waterfront and comes with a dock and a boat for $299.000. A little further out on Meredith Neck on Cummings Cove Road (and just down the street from where I live) is a two bedroom camp across the street from its water access for only $140,000. On Lake Waukewan in the Winona Shores development is a stand alone year round home built in 2002 of 2840 square feet and four bedrooms just up the road from a shared beach for $399,900.

So, if a waterfront home doesn’t fit your lifestyle or budget consider a water access home here in the Lakes Region. There are lots of different opportunities and some really good buys available now. Go to our website www.rocherealty.com to see them all, or call or email me, and I’ll be glad to guide you through finding your dream home.

Contact Kim Cedarstrom at kimc@metrocast.net or 603-520-6609

Pricing Commercial Property

roche-admin — Wed, 18 Jan 2012 20:02:15 +0000

Post written by Kim Cedarstrom – Commercial and Residential Sales -Roche Realty Group, Meredith NH

When speaking with a client recently, the topic of pricing commercial property came up. We were talking about a property that was listed for $499,000 and had an assessment of $250,000. The client felt that the property was drastically overpriced. My response was that the property was not overpriced, but under priced. How can that be they asked? It’s offered for twice what the town feels it is worth for taxation. Isn’t that the classic definition of overpriced? Well, yes if you were talking about a home or a commercial property where the buyer the end user. Commercial properties that are leased need to be seen as investments and priced accordingly.

If you invest in the bond market (pretty scary these day) and you buy a bond for $100 that pays $2 in interest at the end of the year, then you made a whopping 2%. This is called Return on Investment (ROI) or the CAP rate. In the go go days CAP rates were 10 to 12% but CD’s were paying 4-6% as well. Nowadays if you can a CD to pay you 1% you’re doing well. We use CAP rates in the 5 to 8% range these days, but that’s still 5 to 8 times what you’ll make in a CD. So, applying this reasoning to Commercial property, we can work backwards to arrive at a price for the property. We do this buy computing the net income that the commercial property generates (rent less any expenses e.g. taxes, utilities, maintenance, etc.) and then determine what sort of investment at a rate we are willing to accept this would require. The investment amount would then be how much we could invest in the property.

Using the example above: if we know that the property is leased for $3000/mo NNN (Net, Net, Net- this means that the person leasing the building pays all the expenses on the property), the annual return (ROI) is $36,000. Now, how much would you have to invest if you knew the rate of return (CAP rate) was 5% to make $36,000 a year? Easy huh, all you math wizards know you divide the ROI ($36,000) by the CAP rate (5%) and get $720,000. This is how much you would have to invest in something/anything to achieve the desired return. $720,000 is how much the property is worth.

The property is a good deal at $499,000 and actually under priced to return our desired 5%. If all the assumptions are correct, it will generate a return of 7.2% if we buy it for $499,000. The added nicety of commercial property is that there is the chance of appreciation. I know lately this is not the case, but it is not unrealistic to expect things to improve in the future.

What can you take away from this is simple: commercial properties that are leased are investments and are priced accordingly. If you are considering investing in commercial property, do so carefully. The above example is grossly simplified and used for example only. Use a reliable broker. I’ve spent six years in commercial sales and own my own commercial properties. I can help you through the process.

I’ll deal with pricing businesses in another blog. That gets interesting.

Contact Kim Cedarstrom at kimc@metrocast.net or 603-520-6609

Meredith: The Local Secret

roche-admin — Tue, 17 Jan 2012 14:51:39 +0000

Post written by Kim Cedarstrom – Roche Realty Group, Meredith NH

When asked where I live and responding “Meredith NH” (and I have experienced this all over the country and beyond), the almost universal response is “OOOH it’s so pretty there” and they are right. The town complex is one of only two municipalities (Wolfeboro being the other) with its downtown set directly on Lake Winnipesaukee. The Inns on the water and Main Street with its picture perfect white church and spire and shops is like something out of a Currier and Ives scene. But those of us who have chosen to live here know that there is something beyond the resort most tourists see.

The character of the town extends throughout its 54 plus square miles. The full time population of over 6000 expands to over 15,000 in the summer and consists of folks who may only stay part of the year, but call Meredith home. Meredith Neck has some of the clearest water on the whole lake (I know –I’ve fished it all) and a special zoning district (the Meredith Neck Zone) is in place to help maintain the rural feel of the area. Meredith Neck also has been the beneficiary of Conservation Easements- Page Pond, The Bushnell Easement, and Moulton Farm which ensure open area and limited development of open land for the future. Meredith feels like a small town and is, but with access to all the amenities of an urban area and more- a local cinema, home of the NH Music Festival, a vibrant Summer Theater, a full service pharmacy, a supermarket, many great restaurants and shops, an excellent school district, new community center, a wonderful boardwalk on the shorefront, a great library, churches, three banks, and much more! Moulton Farm provides locally grown fresh produce for localavores. Lakes Region General Hospital is just down the road in Laconia with its full staff of specialists and family docs.

One of Meredith’s greatest assets, and not spoken enough of, is its location. Within two hours you can dip your toes in the ocean (or go Striper fishing), access all the academia, culture, or world’s best medical care in Boston, or be skiing in the White Mountains. Manchester Airport is only an hour away.

Look, I’m telling you this but don’t spread the word. We want to keep Meredith a secret. Don’t tell.

To learn more (but just you), you can reach me at kimc@metrocast.net or call me at 603-520-6609. I give private tours if you’re nice.

2011 Year End Lakes Region Waterfront Sales Report

roche-admin — Sat, 14 Jan 2012 00:14:04 +0000

By Roy Sanborn, Roche Realty Group

It was a great end to the year with fifteen waterfront sales on Winnipesaukee in December at an average of $675,300. That compares to nine sales last December but at a much higher average price of $1,306,044. Only three of the fifteen sales last month were over the million dollar mark resulting in the low average sale price.

The least expensive sale in December was at 65 Cow Island in Tuftonboro. This classic Lake Winnipesaukee summer camp has the desired knotty pine interior, wood floors, a first floor bedroom, two large bunk rooms upstairs, a wood stove, and the requisite screened porch where you can sit and tell lies all night. The camp sits on a .79 acre level lot with 150’ of shallow sand bottom frontage and crystal clear water. This property was offered at $324,500 and sold for $282,000 after 190 days on the market. This property is currently assessed for $352,900 so I’d say you have a pretty happy camper there.

Out at 62 Varney Point Left Gilford there’s a new owner that will be tearing down the existing structure to make way for her dream home. The existing home, which was built in 1930 and remodeled in 1988, was not quite to her tastes. But the fantastic westerly views and 115’ of shore front which features a 24’ x 32’ boathouse, attached dock, and breakwater was. The property was offered at $1.195 million and sold for $925,000 after 121 days on the market. That’s just over the new assessed value of $896,540. It will be intersting to see what she builds there…

The largest sale of the month was at 97 Pleasant Street in Meredith. This 1960’s vintage, three bed, four bath, 4,000 square foot home has been nicely updated throughout. It features a first floor master, eat in kitchen, double sided fireplace, recreation room, screened porch, and a three car garage. It sits on a .48 acre lot with 136’ of frontage, dock, and has great views down Meredith Bay. This home was first listed in 2006 at $1.75 million, re-listed in February 2011 for $1.3 million, and sold for $1.1 million which is just under the $1.19 million assessment.

So how did we do for the year on the Big Lake? Pretty darn good, I’d say! The total number of sales were up from 96 in 2010 to 107 in 2011 for an 11.5% increase. However, the average sale price was down below the $1 million mark for the first time since 2003 when it came in at $994,688. The average price is down partially due to some weakening in waterfront prices but also because more lower and fewer higher priced homes sold compared to the prior year. There were 69 properties sold below $1 million last year compared to 52 in 2010. On the high end there were just four sales over $3 million while there were nine in 2010. The total sales volume for waterfronts sold was $106.4 million in 2011 compared to $120.7 million in 2010. The largest sale on the lake for the year was at 31 Wallace Point in Moultonborough at $4.325 million.

There were four sales on Winnisquam last month at an average sale price of $370,250 compared to just one last December. The largest sale for the month was at 264-3 Black Brook Road Road in Sanbornton. This property consists of a three bed, three bath main house, a 1 bedroom guest house, and a three car detached garage on a .65 acre lot with 125’ of frontage. This house was first listed in June of 2009 at $725,000, listed in 2010 for $659,900, and in 2011 for $649,900. After another $20,000 price reduction it sold for $575,000 which is just over the current assessment of $556,000. This brings the total on Winnisquam to 23 sales in 2011 at an average price of $480,536. That’s a 44% increase in total sales from the 16 sales posted in 2010. Just as on Winnipesaukee, the average sale price was down for the year when compared to the prior year’s average of $560,000.

Over on Squam there was just one sale in December and that was the property at 50 Route 113 in Holderness. This is a 1926 vintage, four bed, two bath, 1,600 square foot New Englander on a 1.71 acre lot with 114′ of shore front, sandy beach, and a dock. It was first listed in 2009 for $729,000 and then re-listed this year at $699,000. It was reduced to $499,000 and sold for $450,000. The property is currently assessed at $624,710. Do you see a pattern? There were just seven sales on Golden Pond in 2011 at an average $1.036 million. But that is somewhat better than the five transactions in 2010 although the average sales price was about one half of the $2 million average posted .

We’re hoping that 2012 will be a great year for sales on all the lakes in the area. After all, there’s no place more beautiful and better to live or vacation in than the Lakes Region and right now many people believe there is no place to invest than in lakefront property. If you are considering a waterfront property this may just be one of the best times ever to buy. So contact your REALTOR® and go take a look. You may just find the home you’ve always dreamed of…

Local Realtor Gives Back to Lakes Region Communities Using His Auctioneer Skills

roche-admin — Wed, 11 Jan 2012 20:17:53 +0000

Post written by Frank Roche of Roche Realty Group, Inc.

Laconia – During the past 15 years a local realtor Paul K Zyla associated with Roche Realty group of Laconia and Meredith has been quietly giving back to many charitable organizations throughout the Lakes Region in a unique way. PK’s family started 50 years ago in the auction business based out of Manchester and operated John Zyla Inc. for many years as one of New Hampshire’s leading auction houses. PK followed his family’s passion in the auction business and worked for almost 50 years in that industry. In addition to their large auction and discount center in Merrimack, PK handled numerous events, fairs, and charitable fundraisers throughout the state.
PK’s love of the area brought him to the Lakes Region where he purchased a home in Gilford, and later on Pendleton Beach of Lake Winnipesaukee. Both he and his wife Martha became well known operating Handy Landing General Store in the Weirs Beach for a number of years. His interest in helping local charities developed through his numerous contacts that originated in the beautiful lakes area. At this point PK was handling approximately half a dozen auctions a year for charitable events.

His continued enthusiasm for the area brought him to his next passion…the real estate industry. “I’ve always enjoyed looking at properties and seeing the wonderful selection of unique homes we have here in our beautiful lakes region. I said to myself, I want to get into real estate and I absolutely love this profession. Today I’m in a position to help so many families, first time buyers, and vacation home owners realize their dreams… I couldn’t think of a better way to spend my day.” Frank Roche of Roche Realty Group commented “here’s a guy who’s not only 100% committed to his profession and lifelong dream of being a REALTOR® but he gives back more to local charitable organizations then anyone I’ve ever met.” PK’s wit, personality, and genuine auctioneer skills have helped support so many needed causes and families in our area. PK is truly driven according to Roche. “PK has been instrumental in organizing and actually performing the auctions for at least fourteen charitable auctions a year in the lakes region for the past 15 years.”

Some of his worthwhile events have included the Sweetheart auction for the United Way, Laconia Sled Dog Fundraiser, Humane Society, The WOW Trail, J.A.G. (jobs for after graduates), Cancer victims, Holy Trinity School, Oncology Department for LRGH, Laconia High School Sport Banquet, Laconia High School Football, Chem. Free After Prom Party for Inter Lakes High School, Boys and Girls Club, and many other charitable events.
Roche added: “With the hours that PK commits to his real estate business one would think where do you come up with the time to give back so much to the communities. But this is a perfect example of what all REALTORS® in the lakes region try to do in an indirect way. They believe in the communities in which they live and work. They realize we are all in this together to help make the region a healthy, safe, friendly, and rewarding place to live. Being there when people are in need is a part of helping and giving back to others… a way of giving thanks for having the opportunity to live and work in such a beautiful region.”

You can contact PK at: pkzyla@rocherealty.com

Real Estate as an Investment in 2012??

roche-admin — Tue, 10 Jan 2012 21:26:30 +0000

Post written by Kim Cedarstrom – Roche Realty Group, Meredith NH

What? Are you CRAZY?

Real estate has been pummeled by the economy. People owe more than their homes are worth, and prices haven’t been this low in years. Exactly! Now is the time when you can take advantage. How much is your cash earning? The latest quote I saw on a 2 year CD was a return of a little over 1%. $10,000 invested in a 2 year CD is going to get you $100 year which doesn’t even keep up with inflation. In other words, you are losing money. Try looking at residential Real Estate through the eyes of a commercial Broker. Commercial rental properties are valued as investments and are priced to reflect returns. Say you buy a condominium for $150,000 (yes there LOTS of them out there) and the annual condo fees are $2400 a year and the taxes are $1920 a year (based on the current tax rate in Meredith). Total yearly expenses are $4320. If you rent it for $1000 month ($12,000 a year), you make a return of $7680 which is 5.12%. That’s FIVE TIMES what a 2 year CD will get you. Not bad.

Two concrete examples of this on the market now are:

Village at Winnipesaukee

MLS#4099021 at Treetop Circle in The Village at Winnipesaukee currently listed for $74,900. If you bought this property for $70,000, rented it for $750 a month plus utilities, deducted the condo fees of $2796 a year and the taxes of $1330 a year, you would be left with a profit of $4878 or an annual return of just under 7%.

MLS#4110266 is a town house in Southdown Shores with all the amenities of that association. It is listed for $149,000. If you paid full price and leased it for $1100 a month and deducted the condo fees of $295 a month and the taxes of $2708 a year you would net a nifty $6952 a year or a return of 4.7%. Negotiating a lower price and/or renting for a higher rate seasonally only make this a better deal.

MLS# 4110266

The other upside is appreciation. If you believe that the market has bottomed (as we do), then there is the potential for the value of the property to increase as it pays you dividends. There is no guarantee of this and the halcyon days of 12% annual appreciation seen in the last run up are surely a ways off, but if it does appreciate, your investment just became better.

Now may be the time to think like a Commercial Investor, but apply it to where there is opportunity- residential property. When times are hard, it means thinking out of the box. When the paradigm is not working, create a new one. Contact me: Kim Cedarstrom at kimc@metrocast.net or 603-520-6609, or visit www.RocheRealty.com