Dad can go a little bonkers sometimes, but regardless how you feel about what he writes, his writing is pretty dialed in and very entertaining. His dad, George Frazier, who I never met, wrote for the Globe, Life and other leading publications of the day. He was the leading jazz critic in NYC during the ’50-60’s – boom time jazz; rolled with the greats. I’ve heard he was the man. When someone writes a book about you called “Another Man’s Poison”, you’re probably the man. Some folks are really eccentric and most of the time it runs in the family.
So, to the market. It is and always will be strong. We have a diminishing supply and rising demand – does anyone see which way the arrow is going? I think it is pointing up. Sometimes the market takes a dip, but it’s amazing how late ACK gets in and how quickly she gets out. So, if you are a short term player, play well. Long term, the epically awesome continues…
I had, literally, to go off Island to testify in a court case. The criminal cases came first, so the judge called break for lunch. I went to a very cool restaurant on Barnstable Harbor. There was a big crew next to me. So, I was solo at the top place in Barnstable eating a lobstah with a big crew next to me. Guess what they were talking about? How they just wanted to be on ACK – the Rock is extraordinary.
There’s only so much supply and when equity markets are at all time highs, I’m willing to bet that demand will continue to rise. Econ. 101. Let the games continue!
There are indefinite, unlimited reasons why to rock the Rock. Two important ones are the tax rate, aka the mil rate, is among the lowest in the country. 1mm assessment, 3.65k tax – not bad. And the other, for a vacation home, you don’t have to claim income to the Feds from a rental of 14 days or less. With such a robust vacation rental market, many homeowners will rent for two weeks and basically pay all of their hard expenses for the year. And the list goes on…
Island is coming alive – cherry trees are blooming, hedges are getting green, stripers are biting and the tennis nets are going up – this place is amazing.
“Now I don’t know, but I been told it’s hard to run with the weight of gold, Other hand, I have heard it said, it’s just as hard with the weight of lead.” -GD
Mine as well run with the finest gold.
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.