Island property prices

[MAXUM]

Originally Posted by Orion

But, unlike an investment account, you get to really enjoy a lakefront property investment while it appreciates. What’s that worth!

Priceless!

In the end calculating an ROI on property especially in NH with taxes the way they are, annual holding costs far exceed it's increase in value thus you're typically holding a loser purely from an investment perspective. The longer you hold the property the worse it gets. That's just a fact. So unless you get tons of enjoyment out of it, and use it a lot, it's a very costly place to park money for the long haul.

[TheTimeTraveler]

Originally Posted by MAXUM

Priceless!

In the end calculating an ROI on property especially in NH with taxes the way they are, annual holding costs far exceed it's increase in value thus you're typically holding a loser purely from an investment perspective. The longer you hold the property the worse it gets. That's just a fact. So unless you get tons of enjoyment out of it, and use it a lot, it's a very costly place to park money for the long haul.

This may very well be true, however real estate is generally a very safe place to park your money (remember what happened with Polaroid, Wang, etc.).

Obviously a Bank is also a safe place to place your money if you can live with those very low but safe returns.

[MAXUM]

Originally Posted by TheTimeTraveler

This may very well be true, however real estate is generally a very safe place to park your money (remember what happened with Polaroid, Wang, etc.).

Obviously a Bank is also a safe place to place your money if you can live with those very low but safe returns.

Low returns are better than negative returns. So purely from a financial standpoint the bank is a better deal.

That said it's hard to enjoy a bank statement as a vacation or weekend getaway.

[jazzman]

There are a couple people fishing with property listed at 50%+ what it is probably worth on Barndoor. Real selling prices are up a good 30% in the past 5 years though. Nothing under 500k recently.

[Barney Bear]

There are properties on Bear Island with similar high asking prices. 🍋 💰 💰

[codeman671]

There was a lot of sales last season sub $500k, in fact most of the sales were in that range (a few on Welch, one on Mark, Bear, Little Bear, etc). There was a fair amount that didn't sell that were overpriced. I can think of at least 3 on Bear that fell into that category. I follow it quite closely.

Barndoor seems to have a following, and people that want to be close to Wolfeboro tend to pay to be there. Personally I want to be at the other end of the lake- Gilford, Meredith, Tuftonboro.

[ishoot308]

Originally Posted by MAXUM

Low returns are better than negative returns. So purely from a financial standpoint the bank is a better deal.

Unless your money in the bank is earning more than the rate of inflation, (very rare with rates these days) wouldn't that be considered a "negative return"?

Real estate, while cyclic, seems to always go up in value in the long run...

Dan

[Descant]

If my money were in the bank, I would have to pay somebody to sit on their dock to watch the sunset. Most resorts that have sunsets like you post, Dan, are very expensive, plus expense to get there. Many don't even have a Tiki Bar. A diversified portfolio includes an amount of real estate and perhaps some Brunswick and maybe Caterpillar or Mercury. TIC.

[ishoot308]

Originally Posted by Descant

If my money were in the bank, I would have to pay somebody to sit on their dock to watch the sunset. Most resorts that have sunsets like you post, Dan, are very expensive, plus expense to get there. Many don't even have a Tiki Bar. A diversified portfolio includes an amount of real estate and perhaps some Brunswick and maybe Caterpillar or Mercury. TIC.

I feel the rate of return on Winni sunsets is immeasurable!... The Tiki Bar comes in at a close second! Fishing, boating and snowmobiling are right up there as well! Some things you just can’t put a price tag on!

Dan

[MAXUM]

Originally Posted by ishoot308

I feel the rate of return on Winni sunsets is immeasurable!... The Tiki Bar comes in at a close second! Fishing, boating and snowmobiling are right up there as well! Some things you just can’t put a price tag on!

Dan

Absolutely!!!

It's really hard to enjoy a bank\investment statement on weekends

[Barney Bear]

We are fortunate to have beeen able to watch beautiful sunrises and moonrises from our place on East Bear Island for fifty-two seasons with family and friends. A great investment indeed! 🐻

[MAXUM]

Originally Posted by ishoot308

Unless your money in the bank is earning more than the rate of inflation, (very rare with rates these days) wouldn't that be considered a "negative return"?

Real estate, while cyclic, seems to always go up in value in the long run...

Dan

Yes if interest rates fall below the rate of inflation over the life of the investment it would be no different than the illustration I'm making with real estate. The investment will gain value over time but will produce a negative return. Just as a piece of property's carrying costs, specifically taxes, on an annual basis exceeding the increase in "value".