The capitalization rate, or cap rate, represents the rate of return on an income-producing property when applied against the purchase price. One could say, therefore, a high cap rate is a “good” thing. If so, then why does a high cap rate mean a higher risk investment? The cap rate is calculated by dividing the net operating income by the … [Read more...]
Archives for 2018
Sales Taxes on Internet Sales to New Hampshire Residents
One of the ways that New Hampshire distinguishes itself from other states is that we do not have a general sales tax. This is part of the “New Hampshire Advantage.” There has been a great deal of attention to the issue of sales taxes on internet sales with the recent U.S. Supreme Court ruling in South Dakota v. Wayfair, Inc. This was followed by … [Read more...]
Private Road Maintenance – Live Free or Die in Action!
For the third year in a row, a bill (SB 401) was introduced in New Hampshire to require owners of residential real estate on private roads to contribute toward the maintenance of the road. For the third year in a row, the bill failed. The effort has been led by realtors, who point out Fannie Mae will not buy loans secured by houses on private … [Read more...]
Airbnb – Permitted or Prohibited?
In recent years, the tourism industry has seen the rise of internet-based, short-term rental by owner sites and apps, such as Airbnb and VRBO. These short-term rental options allow property owners and tenants (when permitted under certain circumstances) to directly lease or rent their property on a short-term basis to interested lessees; and … [Read more...]
N.H. SUPREME COURT RULES THAT STATUTE ALLOWS A WINDFALL TO MUNICIPALITIES FOR TAX SALES BEYOND THREE YEARS FROM TAX DEED
In the case of Polonsky v. Town of Bedford, decided on June 28, 2018, the N.H. Supreme Court considered the interpretation of amendments to the alternative lien procedures statutes found in RSA 80:88-91. These statutes were enacted in response to Thomas Tool v. Croydon, 145 N.H. 218 (2000), in which the Court held that it was unconstitutional for … [Read more...]
Celebrating Summer: What Fireworks Are Legal on Your Land?
Summer in New Hampshire is synonymous to some residents with bonfires, camping, and—of course—fireworks. For years, New Hampshire has been the most liberal state in the Northeast with regards to access of residents and visitors to fireworks. But what “fireworks” are permitted for use on New Hampshire properties according to the law? And under what … [Read more...]
Construction Contract without Plans and Specs? Bad Idea.
A couple had a rent-to-own agreement with a third party for a house, pursuant to which they had accumulated some equity. They agreed to relinquish that agreement, forgo their equity, and help a licensed realtor, Michael Fowler, purchase the house, which he did. The couple also entered into an oral agreement with Fowler for him to build them a new … [Read more...]
SUPREME COURT ABOLISHES LIMITS TO SALES TAXES ON INTERNET SALES
On June 21, 2018 the U.S. Supreme Court decided South Dakota v. Wayfair, Inc. creating a paradigm shift in the way in which state sales taxes will be collected by remote retailers. In a 5-4 decision, in a majority opinion written by Justice Anthony Kennedy, the Court overruled the physical presence rule which prevented a state from imposing an … [Read more...]
Are You Required to Give Financial Statements to Your Municipality?
In the context of real estate tax assessments in New Hampshire, the answer is “No.” We have seen tax assessors in some municipalities, such as Portsmouth, request income and expense information from at least some commercial landlords. Owners turn the information over, likely under the assumption they are required to do so. In fact, this … [Read more...]
A Brief Overview of Land Use Appeals
Local land use boards, such as zoning boards and planning boards, issue decisions on applications—such as site plan applications, subdivision applications, variances, and special exceptions—based on the information presented by the applicant(s) and considered in accordance with state law and local ordinance provisions. Boards may reject or deny … [Read more...]