Tuesday night Edgartown voters approved an expenditure to build a new library just outside of town. After voting in favor of the new library, voters agreed to the sale of The Captain Warren House. That property had been purchased in 2004 with plans to expand the current location. The purchase price was $3.5M and current assessment is $3,693,000. I have heard a figure being bounced around of $4 million.
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At some price a good opportunity for an intown project. Perhaps a major project.
[1]Most of us have dreamt of having a vacation home. It could be on the beach in New England, somewhere tropical, or even somewhere foreign. Many consumers don’t realize that with the proper research, their dream vacation home might actually be in reach. Instead of visualizing how relaxing vacations and weekend getaways could be, why not try to make your second home a reality?
The first step to purchasing a second home is organizing your finances to make sure you can afford it without compromising the security of your other assets.
These tips can help you assess whether or not you are ready to invest in a second home.
1. Figure out what you can reasonably afford by looking closely at your income, savings, and spending habits. Future expenses need to be factored into your budget, such as the likelihood of replacing a car or adding to your family.
2. Check each of your three credit reports well before you start looking at houses or shopping for lenders. If your credit score needs improvement contact a credit counseling agency or ask your mortgage company for advice.
3. Create a budget. A budget not only clarifies your current financial situation, but it also helps you identify places where you might cut back to save for a down payment.
4. Consider tax implications. Purchasing a second home has its benefits, but you should make sure you consider funds for property taxes on the second home as well as additional income tax if your home will be rented out. You should research the area’s property taxes because some locations have significantly higher or lower property taxes.
If your research proves you are not quite ready to start looking for your vacation home, try not to get discouraged. It’s better to wait than to put your financial security at risk. If you feel that you are financially stable enough to take on a second mortgage, now is a better time than ever because interest rates are extremely low. Good luck!
On Martha's Vineyard we often come across land with cloudy (defective) title. Most title issues can be cleared, for example mortgages not discharged properly or mechanics liens. More difficult and sometimes near impossible are unknown owners with a small percentage ownership in any one lot or unknown owners of an entire parcel.. One example might be probate at an owner’s death not knowing about the Martha's Vineyard ownership that may have been passed down generation to generation. After many years there can be scores or 100s of descendants. Since MA is a quit claim state (sellers only selling what they have) having an attorney do a thorough title search is an important piece of a Vineyard sale.
The risk might be slim particularly when a descendant does not even know about their partial ownership. There is a process called Petition to Partition through Land Court which makes every effort to notify an heir and often the cost is higher than the value of the property. Once Land Court makes a determination the deed becomes "recorded" as opposed to "quit claim". It cannot be appealed.
Usually a mortgage is not possible on property with cloudy title and often they are purchased by investor's hoping for future profit. There are times an attorney can have title insurance written on a property where title issue is understood but not likely to clear. Another possibility if the defective title relates to a specific piece of a whole is to remove that piece from the mortgage. If the title flaw is discovered after a sale process has begun, it is up to the seller to get the titled cleared. If that is not possible and none of the other options are available, you may need to walk away and find another property to love.
One solution that an investor might use is to fence it in and in 20 years the land may be theirs by right of adverse possession. If you use a parcel for 20 years in MA without any objection you can acquire clear title.
As another summer season ends and the market picks up, at least seasonally, I am surprised not by what has sold nor the rate of sales but rather those homes that have not sold (and are ripe for offers). The properties featured this month all have a good relationship to water, are in the prime range of $750,000 to $1,750,000, and those that need renovation are priced appropriately. I realize we have come through a very weak market yet these stand out because other waterfront and water view properties have continued to sell well. For more information about these properties click November RealtyTimes.
About once a month the Martha's Vineyard Chamber of Commerce sponsors a get together hosted by rotating businesses and attractions at their various locations. Last night was one of the most enjoyable and an experience in which you can all share. The location was the Martha's Vineyard Museum, 59 Cooke Street in Edgartown. A few current exhibits include:
This unique waterfront property boasts extraordinary sweeping views of Vineyard Sound, Woods Hole, and the Elizabeth Islands from every room. The striking design of this home features remarkable stonework skillfully introduced into the structure. Exquisite detail is found in the custom woodwork throughout. The magnificent flooring is reclaimed chestnut. The 3 fireplaces are antique French limestone imported from Provence. The home has a central a/c system with a complete back up generating system. With the home perched at the water's edge, you can catch fish from your deck, watch the boats go cruising by, and enjoy spectacular sunsets. Let the water lapping the shore be your lullaby. Wake up and take a morning swim mere steps from your bedroom deck. The beautiful landscaping, and this particular Island location affords the ultimate in serenity and privacy. $5.5 million. Click here for more informaiton
Sales in many vacation communities across the U.S. soared last year to levels not seen since boom times, driven by deep discounts, cash purchases and buyers' rising stock portfolios. The question now is whether the momentum will last. The strength of second-home sales paints a stark contrast to the overall housing market, which is expected to worsen in 2011. Click here to read more.
By S. MITRA KALITA WSJ.com January 10, 2011
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