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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 »

Prudential Spencer-Hughes is a proud participant in the Toys for Tots Program.

Toys For Tots is a national campaign to collect new unwrapped toys that will be given to less fortunate children in time for Christmas Day.  This program is coordinated throughout the country by the United States Marine Corps (USMC).

Collection boxes will be placed at both of the Prudential Spencer-Hughes Real Estate Offices:

For more information concerning the Toys for Tots Program during this Holiday Season, please contact SSgt. Richard Johnston 603-537-8006.

On behalf of Prudential Spencer-Hughes R.E.  and the appreciative families that you assist with your gift donations, we wish you continued Holiday Seasons throughout the year.

Reprinted from GREENWorks Ideas for a Cleaner Environment, a publication of the New Hampshire Department of Environmental Services, Concord, NH (603) 271-3710.

Summer has arrived, meaning swimming, boating, barbeques, sunshine and summer heat. The summer weather can also bring increased energy use for keeping cool.  No one wants their energy bills to rise with the temperature, and finding ways to stay cool without cranking up the air conditioner saves money – and is better for the environment.

Air conditioners require a lot of energy to operate, and generating power means more air pollution and greenhouse gases being released into the environment.  This contributes to global climate change – and runs up your electric bill. To save a few bucks in the long run – and to reduce your carbon footprint – there are plenty of “green” ways to keep cool this summer.

Easy, Low Cost Solutions

• Fans: Use fans to keep air flowing. Ceiling fans can make a room feel up to seven degrees cooler, and they use less electricity than air conditioners. A medium-sized window AC unit uses 900 watts of energy, while a ceiling fan set at high speed uses just 75 watts. By using a ceiling fan and raising your AC thermostat by just two degrees, you can lower your cooling costs by up to 14 percent. And remember, a fan cools YOU, not the room, so be sure to turn it off when you leave the room.
• Window Coverings: Install window shades, drapes, or blinds to reflect heat away from the house.  Close blinds, shades and drapes facing the sun during the day to keep the sun’s heat out and help fans or air conditioners cool more efficiently. read more »

First of all talk to your attorney, this is my best advice.  Despite the fact that divorce is an emotional roller coaster, the process demands a reasoned and rational approach to the disposition of shared real property. This is especially true when there are outstanding loans that obligate each individual.

Remember the loan clause regarding each spouse being equally and severally liable for the entire debt?  If both spouses had originally signed for the mortgage and one one spouse is going to keep the property, it is of paramount importance that the other meets his or her obligation before signing over ownership interest.  It may be necessary to refinance the mortgage so that the other spouse can be paid off. Besides determining who should buy the other person out you must negotiate the division of property and assets. But even before this takes place, you need to know your share of the equity. Therefore you must evaluate the worth of the house, subtract the outstanding mortgage balance and then calculate your share of what remains. read more »

Can a vacation 2nd home qualify for a 1031 tax deferred exchange? The answer is an unequivocal “maybe.” Clear enough? There certainly are established tax breaks that can make a vacation home more affordable, and use of this knowledge is how tax specialists earn their daily bread. I strongly suggest you meet with one for the latest IRS rulings and to maximize your benefits.

One very basic rule is to document the length of time per year that you and your family members spend at your vacation home, and whether it is held for personal use and enjoyment or for investment purposes. This, along with any rental income you may derive from it, will determine how the property is treated for tax purposes.  The three basic categories for review are: Use a lot/Rent a lot; Use a little/Rent a lot; and Use a lot/Rent a little.

What qualifies for a 1031 exchange?

It is accepted that a 2nd property that is used fewer than 14 days per year by the owner and rented out the rest of the year, is considered to be an investment property and qualifies for a 1031 exchange. Furthermore, raw land with no improvements and held solely for appreciation purposes qualifies for a 1031 exchange. Again, this at times may seem like a somewhat moving target, and discussion with your tax advisor would be my advice.

If your 2nd home is used exclusively for family vacations, the interest on a mortgage would be deductible just as interest on your first home is treated. And as important, local property taxes may be deducted on your second home. If your 2nd home is for seasonal use only, and you rent it out for 14 days or less in a calendar year, you can receive rent without claiming it on your income tax return. You can also still claim the same deductions in that the IRS considers it to be a vacation home.

Some formerly seasonal homes, bought many years earlier, and then later used as the principal residences of  newly retired owners following improvements, may qualify for the up to $500,000 tax free profit upon its sale after 2 years of primary use. However, federal legislation has been adjusting this break recently to apply tax to a pro-ration of the total years of 2nd home ownership to that of primary residence.

Confused? It is daunting at times, but 2nd home ownership reality is made more possible for many by navigating through the existing rules and regulations – and for, by and large, very enjoyable results.
Jim Ferriman

I admire the results of planning and forethought. And every time I tie up at the Meredith town docks I’m impressed by the effort of the town fathers in creating this quintessential white New England village. Prior to 1830 almost every structure in New England was unpainted. But, at around that period, entrepreneurs began manufacturing paint and distributing it in containers. White paint became the paint of choice because it was easier and cheaper to produce than colored paint. Early promoters shrewdly marketed white as the “tint of wealth” and thereby increased their profit margin. No matter, it lent itself to the classical appearance of an apparent prosperity of villages then as it does now.
The current town fathers of Meredith certainly have taken those lessons to heart. The result is a strikingly beautiful town on the shores of Lake Winnipesaukee and one that is becoming a worldwide destination resort. The town offers accommodation and dining choices which are among the finest in New England. And access to the wide world is a Gulfstream V away at the Laconia Municipal Airport. The homes along the shoreline on Meredith Neck are some of the most impressive on the lake with wonderful views down the length of Lake Winnipesaukee. Especially in winter, Meredith evokes a memorable experience for all who can spend some time here. Check out www.meredith.com, you’ll see what I mean.
Jim Ferriman jferriman@spencerhughes.com 603-520-5385

The Autumnal Equinox like the Spring Equinox occurs when the earth’s axis is inclined neither towards the sun nor away from it, the sun being vertical above a point on the equator. So says Webster’s. 

I say as we approach this semi-annual event that there is stillness and heaviness in the air, a somnolence, and a hesitation as the Lakes Region moves to the annual effusion of color that engulfs New Hampshire. I can’t imagine living in a place without seasons, a dreary sameness covering the land, not so here. Everyone senses the approaching explosion of color soon to erupt covering over familiar hillsides and woods. FALL, the absolute best time of the year. 

The local paper reports that the unusual amount of rain of the early summer months will result in a rare vibrancy and sharpness to the pigmentation of the leaves. This is the time for the hardwoods to come forth, the Ash, Beech, Birch, Maple, Oak and a cruise on the lake aboard the Mount Washington is a great way to experience a New Hampshire autumn. Each island seems to compete with its neighbor as a Currier and Ives poster edition. 

What else is on the agenda? How about the Sandwich Fair in a few weeks time. I have a favorite book on early New Hampshire titled “The Road through Sandwich Notch” by Elizabeth Yates, which makes the 200 plus year history come alive in this magnificent portion of New Hampshire. Also its time to split and store this season’s firewood. Firewood, warms you as you cut it, transport it, stack it and finally burn it, what a bargain.

From a realtor’s standpoint this is the time of the year when the serious buyers come forth. Those who have done their homework over the spring and summer and have a clear idea of what they want if not where to find it.

My own log shows a sharp spike in island property inquiries, more so than in previous years. So many who are approaching retirement have fond memories of their youth spent at one of the summer island camps on Lake Winnipesaukee. The urge to re-capture those feelings becomes nearly irresistible to them. My good friend and Spencer Hughes associate, Island Bob Parmenter, has gone so far as to live year round on Cow Island in his fantastic Adirondack home. Adventurous, of course, but his rewards are nearly immeasurable.

Our new and expanded web site is nearing completion. Adam Dow has been directing the effort through our web designers. Once on line our objective is to provide the most thorough, complete and user friendly service to our clients and customers here and around the world. Please make use of it as a way to stay current with the changing local real estate market.

Jim Ferriman             Jferriman@spencerhughes.com                        603-520-

There have been a number of recent studies conducted by NNREN, the Northern New England Real Estate Network, and NAR, the National Association of Realtors, of the various methods by which interested buyers initially learn of suitable properties and subsequently contact a real estate agent for information and representation. The conclusions of these reviews determine that the majority of buyers utilize the resources of the Internet to discover, research and compare properties in which they develop interest. Upwards of 85% of all contact originates not with the traditional forms of real estate print marketing but begins with the electronic media.

Over the past few years forward thinking firms have directed a large part of their resources to effectively addressing this fact. Real estate web design has evolved into an expanding and lucrative business for many nascent firms of often just a few talented employees. Competitions among national realty groups for the most user friendly and informative web sites is very real and will only grow. But, problems do surface for major groups as they attempt to tailor design efforts to support their larger corporate objectives.

Recently, Realogy, the parent corporation of Coldwell Banker, Century 21, ERA and other firms which are “numbers based” have reported staggering losses in their financial statements. Realogy went through a leveraged buy out late last year of over $6 billion dollars and staying current on their debt load may be presenting problems as their main revenue source fell. Business models dependant upon employing as many agents as possible with commensurate pressures of performance function best in stable and rising markets, something which is has not been present for several years, and do not always serve the client’s interest in the best manner. Again, statistics have shown that after 5 years the real estate profession experiences a 95% turnover in personnel. Personally I believe only the barest essentials of any profession can be inculcated in so brief a time and though the major firms have in place training methodology their emphasis is rigid and inflexible.

Bob Hughes has always emphasized teamwork among his realtors and has crafted a strong vision of the future for his firm as we enter the early part of the 21^st century. Not a boutique agency, Spencer Hughes nevertheless has a strong presence crafted around the unique market of the lakes region of New Hampshire. Our agents bring knowledge and a coordinated expertise to the interests of our clients. An early proponent of a well-designed web site Spencer Hughes has not rested on past innovations but has continuously sought to improve our marketing efforts to provide the maximum exposure to our client’s homes.  Many of our individual agents have established their own web presence which enhance the corporate website.  Newly created blog communications, such as this one, provide additional information and increase focus upon our firm and the clients we represent.  Because our marketing decisions are made independently and without the input from a distant controlling parent corporation we have been able to target the specific needs of the Lakes Region. Spencer Hughes regards as a major asset its ability to offer and implement creative solutions to difficult real estate questions and situations. Without the hobbles of an out of state controlling authority we offer a flexibility and immediacy that larger corporations cannot not compete against.

Each week the firm receives an account of the “hits” to our web site. The interest is broken down from international queries down to interest by each state. This analytic input gives the firm the ability to monitor outside interest in our product, the exposure to the serious buyers of our client’s properties.  Check with one of our agents for the most current report of the key indicator of trends and focus on Lake Winnipesaukee. The second home interest in the Lakes Region of New Hampshire is always present and matching that interest to our client’s objectives is what we do best.

Jferriman@spencerhughes.com              (603) 520-5385