Image by Golden Eye via Flickr

Some believe the translation of “Winnipesaukee” to be “Beautiful Water in a High Place;” an apt description, and one that has been in use for more than just a short while. After all, the earliest known community along Lake Winnipesaukee’s shores was the large village of Aquedoctan, established by the Abnaki Tribe along the Weirs channel some 500 years ago, perhaps a great deal earlier. The historical evidence leads to the great mystery surrounding the “Big Lake”—that being how this large lake can maintain its water quality in such a confined watershed. Winnipesaukee is extraordinarily pure for a body of fresh water, in spite of heavy and sustained use. The continuous efforts of the past and current inhabitants to preserve its rare qualities account for this end result.

Winnipesaukee 101: Lakes Region Facts

The basic facts: Winnipesaukee has 183 miles of shoreline and a surface area of nearly 72 square miles, is 21+ miles long and up to 9 ½ miles wide, has a multitude of islands (300 or so, depending on who is doing the counting), and possesses some 600 navigation aids. It was born of the Wisconsin Glacier Period, when glaciers 2 miles thick gouged out fractured and less competent rock, leaving citadels of the more substantial host granite. At their end 13,000 years ago, the glaciers retreated, leaving their mark in the form of moraines, eskers, and kettle depressions, and in effect sculpted all of the Lakes Region of New Hampshire.

Why Do We Love to Live on Lake Winnipesaukee?

Of course, I have an opinion as to the major influence on the quality of the lake: I think that when people choose to live in a place rather than living somewhere out of necessity and receive continual visual inspiration, things on purpose turn out better.  That, and the fact that very little mining was ever done in the surrounding mountains.

The 19th century poet John Greenleaf Whittier thought this way about the view from the Melvin Village shoreline when he wrote, “Where the great lake’s sunny smiles – Dimple round its hundred isles.” When I try to imagine the lake a generation or so from now, I feel that the magical quality of the lake will more than endure; I believe it will grow in grace and serenity.
Jim Ferriman     jferriman@spencerhughes.com        603-520-5385

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.
• Heat Sources: Reduce internal heat sources by turning off lights and computers when you’re not using them. Don’t use a stove or oven to cook – microwave your meals or grill outdoors. Incandescent light bulbs also create heat, so consider replacing them with compact florescent bulbs.
• Air Conditioning: If you use central air conditioning, program your thermostat to work around your family’s summer schedule by setting the temperature higher when no one is home. For any air conditioner, check the air filter regularly and change it when it is dirty, which can save 15 percent of the energy used.  When buying a new air conditioner, look for one that is an ENERGY STAR product.

Longer-Term Solutions

• Plant Trees: We already know trees are great for the environment, but most people probably don’t realize they can also help cut cooling costs. By planting deciduous trees (trees that lose their leaves in the winter) on the south and west sides of your house, you can reduce air conditioning costs in the summer by up to 30 percent, and still allow the sunlight to warm the house during the winter.  Planting trees near driveways and patios can also help limit landscape heat load (heat that could otherwise be reflected back toward your house).
• Roofs: Another great way to keep your house cool in the summer is to install a light-colored or reflective roof. Light-colored roofs deflect scorching sunrays that black shingles absorb. This alternative may be pricy, but if you already have plans to renovate, consider opting for a gray or beige roof.
• Windows: Upgrading your windows is another cost-saving renovation to consider. If your windows are due for replacement, ENERGY STAR windows can make your home more comfortable year round.
• In the car: Besides the house, the car is probably where people are most likely to crank the air conditioning to avoid a sweltering commute, but running the air conditioning works your engine harder and cuts down on fuel economy. When traveling slower than 40 mph, it’s more fuel-efficient to roll down the windows.   Reduce inside cabin temperature by parking in the shade, putting a sunshade in the windshield, and always roll down the windows when getting into a hot car.

We’ve already seen some record breaking temperatures this summer, and while it may not be realistic to eliminate the use of air conditioners altogether to keep cool, there are options that use less energy and don’t raise your energy bill quite as much.  So keep yourself cool while saving money — and
the environment!

For more information, contact DES at 271-1370 or the Office of Energy and  Planning at 271-2155.

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.

Selling shared property in a divorce

If both parties are selling the property, then you’ll need a complete understanding of what, if any, improvements will be needed for the sale and what they’ll cost. Both parties, or their executed power of attorney, must sign the sales document, disclosure documents, sales contract and settlement statement, as well as any deficiency in a negative equity situation.  Remember, too, the timing of the divorce and property sale needs to be considered so that each spouse gets all available tax benefits.

Do divorcing couples need a Realtor?

After all, both individuals will have their own attorneys. Well, an experienced Realtor can facilitate cooperation between divorcing couples and their respective attorneys. Besides reducing overall stress levels, the Realtor provides a neutral, independent professional assessment free of any prejudice. And, in my experience, when every issue goes to the attorneys for a solution, expenses and delays rise dramatically. Let the Realtor pre-qualify potential buyers, assist in setting the price, advise as to preparing the house for sale, prepare the marketing proposal, show the property, execute the purchase agreement and close the deal.

Jim Ferriman    jferriman@spencerhughes.com        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.

Mortgage Loans: How Much Is Too Much?

An all too familiar error is for an applicant to seek the highest loan amount available. Remember, the applicant has to pay the loaned amount back and home ownership costs also include property taxes, insurance and necessary maintenance. Assessing your future monthly expenses is critical.

There are many sources of mortgage loans and it would be a mistake not to shop around but remember the lowest rates do not always mean the best mortgage loan. Gain a clear understanding of the closing costs from a potential lender.

Having high balances on numerous credit cards is also a red flag for lenders. It is also imperative that no large purchases appear on your credit report between application and closing. I had a client who decided to buy an expensive boat for his expected waterfront home prior to closing and it resulted in a failed loan closing.

The overriding rule is not to borrow more money than you can repay.

Jim Ferriman    jferriman@spencerhughes.com        603-520-5385

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

Tickets are $45 a person, you get food, $150 in poker chips to start. We have tons of great prizes (gift certificates, artwork, tickets to events, etc) that you can use your winnings to either bid on (for bigger items) or get raffle tickets to put in the baskets for some of the smaller ticket items!

It should be a fun time, and of course you can always buy a SUPER RAFFLE ticket for $50 and have a 1 in 300 chance to win $5000! You need not be present to win! I have raffle tickets and casino night tickets if you are interested! I know many of you have had your kids go here or have grand kids that attend, it is a well run Center.

Thanks for your support!

Karin

Belknap Mountain Tower in 1989 (Photo courtesy Iris Baird)

Around this time last year, after a period of little rain and low humidity, the Town of Alton experienced a major fire which, fanned by 40 MPH winds, destroyed a number of homes in the Alton Bay area. The town council has been active in reviewing and acting upon prevention suggestions. But one of the first lines of defense remains the Belknap Mountain Fire Tower, in operation since 1913.

Each day may begin like any other for a smoke watcher in the Lakes Region of New Hampshire. The fire watcher makes a visual scan for any blue smoke, reads the weather recording devices, checks the Osborne Fire Finder instrument, settles into the insulated chair, for lightning storms, and makes his morning radio check.  Right now the forest is dry, always flammable, but until the lightning storms later in the summer the danger of fire is moderate. Later, with the afternoon winds, the tower will sway; maybe there will be a visit of St. Elmo’s fire.  Vigilance is the watchword; there are no magazines or newspapers; no telephone, doorbell or mailbox.

The trails to the fire tower are worth the walk. My favorite route is along the ridge from Mt. Major. There are also trails from the Gunstock Recreational Area. The views – what can I say, they’re mesmerizing. Lakes Winnipesaukee, Crystal, Manning, Wentworth, Merrymeeting. The towns of Alton, Gilford, Wolfeboro, Meredith, Center Harbor. To the Northeast, the Maine mountains bordering the ocean, to the North, Mt. Washington and the White Mountains, to the Southwest, Mt. Monadnock.  Dreamlike views, all of it seemingly empty.

It still surprises me somewhat to find people local to the area who have never gained such a perspective offered from the highest point in Belknap County. There are more of them than you would guess. Not so, my friend J.R. Stockwell, the 10th generation native who I believe has hiked more trails, ascended more mountain tops in winter, and taken more advantage of the wonders New Hampshire has to offer than anyone that I know of or have heard of.

I stayed on Belknap Mountain one afternoon until sunset, the sky filled with banks of ragged fiery clouds and then hiked back down in a fine mist as the forest settled in for the night. Time well spent.
Jim Ferriman    Jferriman@spencerhughes.com    603-520-5385

Considering real estate? Don't wait!

Why? Why indeed! The answer is and always will be the long term appreciation rate of a property. Appreciation is the increase in property value over time due to inflation and the effects of supply and demand imbalances. If the appreciation rate is high enough, about 1.75 points above the inflation rate, the value of the property increases faster than the outlay costs of taxes, insurance, maintenance and interest. This results in the experience of “living for free.”

Long term appreciation rates will mirror the general rate of inflation. If they don’t, the great leveling factor of supply and demand comes into play. A statistical review tracking repeat sales of the same homes, known as the Case-Shiller index, concluded that the price of existing homes increased by 3.4% annually from 1987 to 2009. The general rate of inflation during this period was 2.9%.

Has the bottom been tested? The awful corollary of appreciation is depreciation. This happened in the late 2000s. Has it run its course? Well some of the best returns from Wall Street for the past 12 months have been realized by real estate mutual funds. PIMCO Real Estate, PRRSX, showed a 107.41% per share increase for the 12 months ended 4/30/10. To me this is an excellent indicator of how investors and finance insiders assess the national real estate market.

Now here is my central point: There remains little undeveloped waterfront property in the Lakes Region; ergo the appreciation rate should not only keep pace with the national inflation rate but also allow a faster increase in value due to the demand exceeding supply. Low property taxes and interest rates, a growing population and the desirability of an area are other major factors, and which I have written about in earlier blog posts, that will also positively affect the value of Lakes Region Properties.

Tomes have been written, are probably being written and likely will be written about the real estate fluctuations of the past 4 years. And though I prefer to retain a sense of the undiscovered nature of our area I imagine we can expect some focused attention on the Lakes Region of New Hampshire.
Jim Ferriman    Jferriman@spencerhughes.com    603-520-5385

Fishing the NH Lakes Region...It really was this big

The fun of fishing seems to transcend all ages as to excitement and thrills, from the great grandparent to the great grandchild. And the lakes and rivers of the Lakes Region of New Hampshire provide endless opportunities and memories for everyone. I have several favorite quotes about fishing. Some even by noted and notable fisher folk.  But my all time one remains, “We are always the same age inside” which I’ve taken from a Gertrude Stein essay and applied to this noble effort.

In another few weeks I’ll put my own dock out. I have a bench at the end of it which provides just the right comfort level for both the eldest and youngest anglers. For me as well, though I do like to go out in pursuit of the small mouth bass and lake trout of Lake Winnipesaukee. For the first timers I suggest a day or half day with one of the professional guides on the big lake, check Lake Winnipesaukee Fishing Guides. They won’t give away all of their secrets, just enough of them to make sure that you’ll enjoy yourself.

The NH Fish and Game Dept. has been busy since early April stocking the smaller lakes, rivers and streams in Carroll and Belknap Counties. My neighbor and his son had a great day at Manning Lake on Sunday. They limited out on fine Brook Trout. And my friend, Captain Joel, of www.nhsaltwaterfishing.com should have his boat out by late May in the Piscataqua River and offering the very best striped bass action anywhere. I’ve been out with him a half dozen times and always had a great time.

Like James Joyce, “I love all things that flow”, I too am enamored by the sight and sound of moving water though I suspect he may have been alluding to things other than rivers. At any rate its fishing season, part of the many whys folks embrace the New Hampshire life style especially here in the Lakes Region. I encourage you to experience and re-experience an activity that will never grow stale, you can always recall a day on the water.

Jim Ferriman
603-267-9866

The Lakes Region is a finite resource...

Last week, 4/12/10 through 4/18/10, our chief search engine, Google, reported that our website received 2,301 visits from 22 separate countries. This total is also broken down by new visitors, 47.85% and the average of 4 minutes 6 seconds per visit. Impressive to be sure and that reflects the broad international interest in what the Lakes Region of New Hampshire has to offer as a second-home haven. Though I have to suspect the sole visit from Fiji was likely a local on vacation and who was checking out the live web cam video of Wolfeboro or Alton Bay.

The above figures do serve to underline the strong market interest in Lakes Region properties as well as the accessibility of complete and timely information available to browsers, investors and homesick expatriates on the PSH site. But a leading website is more than just the result of a large amount of invested capital and skillful design. Anyone with the means and commitment can achieve a semblance of success and turn out an attractive product. We strive to surpass this worthy goal by additionally pledging our negotiation skills, time saver methods and efficiency expertise to our clientele. Our teamwork is unmatched.

So, where are we? The knowledge and ability to account for that large “Invisible Hand” of Adam Smith, Milton Friedman and Friedrich Hayek and connecting with it in a way helpful to both the seller and buyer is what we offer at Prudential Spencer Hughes. No more, no less, only better than anyone else.

Jim Ferriman
603-267-9866