Island property prices

[Pineedles]

Getting back on topic, my illustration of appreciation of lake front property delivered a 5% annual yield after 128 years. About what I want my IRA to deliver after advisor fees. Not a bad investment, but there were slow periods and rocket periods in those years. I think we’re in a kind slow appreciation period right now, but who knows.


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[hemlock]

Thanks for lots of great,thoughtful responses to my original post.

In 1965 my grandfather bought what was the second lot of a subdivision sold on the non idlewild side of Cow. He was informed of its availability when he brought his television to the repair shop. I remember him saying that island land seemed to be around 1/3 the price of mainland. That is that he paid 3500 dollars for a 100 foot shore lot when mainland for the same frontage and 1/2 acre was around 10000.

He was a careful saver and paid cash. Not bad for a part time farmer and janitor at the local school. His legacy to his children grandchildren and now great great grandchild was a wonderful one.

[Orion]

Originally Posted by Pineedles

Getting back on topic, my illustration of appreciation of lake front property delivered a 5% annual yield after 128 years. About what I want my IRA to deliver after advisor fees. Not a bad investment, but there were slow periods and rocket periods in those years. I think we’re in a kind slow appreciation period right now, but who knows.p[/url]

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

[chaseisland]

Priceless!!

[Descant]

To coin a phrase: "It's for the children".

[chasedawg]

Originally Posted by chaseisland

Priceless!!

Back in 1982 I was transferred by Digital Equipment from Ohio to MA. When I left Mentor Ohio on Lake Erie I owned a beautiful 40' Flybridge Chris Craft Commander. Great boat. When I came to Boston I told my neighbor I was going to the Boston Boat show to buy another cabin cruiser. The neighbor said why buy a boat... you should go visit the lakes up in Maine and NH. So I did! I fell in love with Lake Winni. She went with me! I bought the camp and not the boat. Second best move I ever made. I fell in love with her too! The best move I ever made was to marry that beautiful and smart women next door.

[tis]

Originally Posted by chasedawg

Back in 1982 I was transferred by Digital Equipment from Ohio to MA. When I left Mentor Ohio on Lake Erie I owned a beautiful 40' Flybridge Chris Craft Commander. Great boat. When I came to Boston I told my neighbor I was going to the Boston Boat show to buy another cabin cruiser. The neighbor said why buy a boat... you should go visit the lakes up in Maine and NH. So I did! I fell in love with Lake Winni. She went with me! I bought the camp and not the boat. Second best move I ever made. I fell in love with her too! The best move I ever made was to marry that beautiful and smart women next door.

I just love that story-I never heard it before! I love your camp too! We have often said we are glad you love it so much.

[chasedawg]

Originally Posted by tis

I just love that story-I never heard it before! I love your camp too! We have often said we are glad you love it so much.

Many thanks to you! We can't thank you enough.

[Biggd]

Originally Posted by chasedawg

Back in 1982 I was transferred by Digital Equipment from Ohio to MA. When I left Mentor Ohio on Lake Erie I owned a beautiful 40' Flybridge Chris Craft Commander. Great boat. When I came to Boston I told my neighbor I was going to the Boston Boat show to buy another cabin cruiser. The neighbor said why buy a boat... you should go visit the lakes up in Maine and NH. So I did! I fell in love with Lake Winni. She went with me! I bought the camp and not the boat. Second best move I ever made. I fell in love with her too! The best move I ever made was to marry that beautiful and smart women next door.

I met my wife at the Brickyard back in 1979. We will be married 40 years next year.

[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".