I’m a firm believer that there is no time like the present to buy property on Nantucket if you are a long term holder and/or if it’s a lifestyle buy. Nantucket real estate values are tried and true that they inevitably go up and outpace most other investments. If you’re buying for lifestyle, why wouldn’t you buy if you wanted the property and have the means? Chances are, you’ve worked hard to have the means to enjoy your life, so why wait – time is precious.
Also, regardless if the market is strong, soft, neutral, there are always opportunities. Sometimes you only get one bite at the apple, so take it when you have the chance.
Spring is in the air bringing blooming daffodils, bikers on the paths, hungry fish and much more. Spring also brings overly excited Sellers, who think their properties are worth more than they are – the emotion factor. So, they tell their broker to list it at their subjective price rather than being rational, comparing their property to what has sold, not what is available, and which way the market is going. This can create a snowball effect because once one Seller lists too high, then the next Seller thinks, if she’s asking x, then I should ask x + y, if he’s asking x + y, then I should ask x + y + z, etc. Then, there are a bunch of overpriced listings that don’t sell and everyone is spinning their wheels. It can be tricky to have Sellers take the emotion factor out of their thinking, but the numbers don’t lie.
The downtown Nantucket commercial market rarely, if ever, has a vacancy. We own a few buildings and are constantly getting calls asking if we are going to have a space available. The answer is usually “no”; the tenants know once they give up a prime space, it’s going to be hard to get back in. A friend owns a triple A building. His tenant of 21 years decided to retire. When the moving truck showed up in the middle of winter, when barely anyone was around, word still spread like wildfire. He had a signed lease and half the year’s rent wired to him before the previous tenant even took their sign down. He didn’t tell anyone it was available, no advertising, leased within 24 hours – whoa! He said he could have leased it 10 times over. When the opportunity is there, you have to be quick…
There are many perks to my job, but a big one is that I get to see incredible properties – Work Of Art Houses. And, they are just getting more and more stunning, especially with the high-end spec. houses. Since most of the spec. builders are crushing it right now, more are getting into the game causing more competition. So, they have to differentiate themselves from each other causing the bar to continually get raised.
Then, there are houses built by end-users, who decided to sell for one reason or another, with unlimited budgets and only want the best of everything. For example, 4 Middle Valley Road/48 Shimmo Pond Road just came on the market – WOAH!
I love my job!
bACK from Houston – whoa!!! Throw down… That was incredible! Touchdown Tom and Crew do it again! I watched it on re-run twice so far, so that’s three times. Think about the run we’ve had – Federer/Nadal, Pats, Cubs, Cavs, ‘Nova…
Houston has little to no zoning, which is one less, major barrier for the Invisible Hand to break. If you want to see how the economoy is doing, go to Houston. Anything goes, which makes for an efficient, liquid economoy. There were countless examples of a church being next to an apartment building, being next to a tattoo parlor, being next to a high-end restaurant, etc. On contrast, Nantucket has strict zoning, creating a big barrier to the Invisible Hand and therefore creating limited expectations and huge value; a few arbitrage situations, too…
An abutting property of one of my clients came on the market. I called him and said Whip, you should buy this – just like in backgammon, when you control abutting points/properties, you are in a stronger position. He said he’d pass for now. In the meantime, he did work on his property and had to get a survey done. He called me and said what’s going on with the property. I said it’s available, let’s do it. He said, let’s do it. So, we did it. He said, after we close, I’ll tell you why I’m buying the property. We closed and he said aren’t you curious? I said always. He said his $5K shed was on the abutting property and he didn’t want to deal with moving it, so he bought the property. $1.5mm property because of a $5K shed – gotta love it. Welcome to ACK!
Market continues to move – a property just sold for $5mm on Washington Street!
Off to the land of no zoning next weekend – will report bACK.
During the first blizzard of ’17 on ACK, I had a few moments to read an amazing article from Forbes on a beast of a man – David Mitzner – whoa!!! So many parts of the article stuck out, especially this quote, “I’ve learned my lesson: if you think something has real value — go for it. Even overpay if necessary, the property will pay you back the difference, if its value and location is really right.” I’m a firm believer in this especially if you factor in the lifestyle element. Money is money, life is everything…
Feb. 5th – see you in Houston!!!
Relaxing, but never really because not what I do, in Boca Grande, and my friend said, “You were smart to buy real estate; I just give my dough to the bank.” I’d thought about that a million times before, but for some reason, this resonated – whoa – the market could drop 50% and they’d still be solid investments – not only financially, but lifestyle. We live/vacation on an amazing island – the beaches, conservation land, historic whaling town, architecture, bike paths, sandwiches and the list goes on… I’ve been fortunate to travel the world and be raised by an amazing family – we live, eat and think real estate – so I always think about it. The Rock is the best.
So close, $960mm…
Happy New Year!!!
$1,000,0000,000??? Will we hit that benchmark – going to be close. Currently $935,000,000 has closed and $100,000,000 is under agreement. Two weeks to go… Regardless, a strong year. Will it continue? Everyday there is less supply and more demand for a sandy asset. Econ. 101…
On Thanksgiving Day, hundreds of swimmers, including yours truly, and spectators, took to Children’s Beach to take the Turkey Plunge to benefit the Atheneum’s Weezie Library for Children. Over $100K was raised for the library – that’s exceptional and helps makes the Weezie Library an invaluable asset to the community! From fun, inspiring events like this to enjoying the crisp salt air, Thanksgiving on Nantucket is truly an amazing time and it is catching on; the island was bustling. Couple the amazing times of enjoying a dip in 50 degree water with fellow Nantucketers for a priceless reason or sipping mulled wine while touring historic whaling captains’ houses over Stroll or just taking a walk along the gold shores of the Grey Lady with the fundamentals of supply and demand and Nantucket property values will continue to rise.