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There has been some welcome, and overdue, legislation from the NH State Senate regarding the New Hampshire Comprehensive Shoreland Protection Act, which clarifies and simplifies the 2008 revisions of the original 1991 act.  NH State Senate Bill #154 will allow the waterfront owners and builders in the Lakes Region to efficiently schedule and manage costs concerning waterfront property alterations by greatly reducing the confusion and unknowns of the state’s position regarding an owner’s project proposal.

The bill will also keep in tact all of the provisions that protect the water quality and waterfront beauty, hence the property value, upon which the purpose of the Act rests. I believe that this bill will eliminate what had been in my mind some of the unenforceable aspects of the earlier revisions and provides that most permits would be issued or denied within 5 days of the application date. This includes applications for new construction, landscaping, excavations, water runoff management, repairs and alterations to existing structures and general improvements to waterfront property beneficial to the goals of the Act. read more »

Recently a New York State Tax Appeal Tribunal upheld an administrative law judge’s ruling on a 2009 tax case regarding a unique interpretation of what constitutes a “permanent residence.” The decision was based on the fact that, though the home was occupied only a few weeks a year by the owners, it could have been lived in all year round. Simple enough, except that the owner lived and worked in another state and had not been complying with the New York state income tax regulations. Simple but a real game changer.

The basics of the case are as follows: A Connecticut couple bought a second home for vacation use on Long Island for approximately $260,000.00 some years ago. During their ownership they complied with all tax laws regarding mortgage interest and property tax deductions based upon their minimal personal use.  New York state income tax had been assessed only on the husband’s income earned while working in New York.

With this new ruling, the couple has been found to have been in non-compliance with the New York State Tax Code, and the state has made an additional demand regarding income earned by both husband and wife outside of NY. This additional tax bill amounts to $1.06 million. New York tax experts say this ruling is a complete departure from how summer second homes have been treated by NY.  It has the potential to raise the tax bill for thousands of second home owners in the city and other vacation home areas in the state.

Last week’s analytic report numbering visits to the Spencer Hughes website showed gains in the number of inquiries from Connecticut, Massachusetts and New Jersey residents. Small surprise to me, for I expect an increase of inquiries to New Hampshire, which has no state income tax, should this interpretation be applied to out-of-state second home owners in the Catskills, Finger Lakes, Adirondacks and Thousand Islands areas. And the possibility of other cash-strapped states adopting the NY ruling is also very real. This would certainly provide support for second home property values in our state.
Jim Ferriman    Jferriman@spencerhughes.com     603-267-9866 & 603-520-5385

Securing a Mortgage Loan? Plan Your Strategy.

Mortgage rates this week are quoted as low as 4.25% fixed on a 30-year primary residence mortgage. These low rates may even drop further before they begin to rise again; the real surprise may be the difficulty of even well qualified buyers in securing these low rates.

I want to review the important steps to be followed in applying for and obtaining the best rates offered. The loan process begins with an individual’s credit report and the FICO credit score.

The FICO score is the 3 digit number that is used in the majority of mortgage lending decisions. I recommend buyers order their score on the web for a nominal charge at least 6 months in advance so that there is time to challenge any errors prior to making an application for a loan. Never confuse being “pre-qualified” with being “pre-approved” for a mortgage loan. The first term is almost meaningless while the second is a complete process and actually involves applying for a loan. read more »