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Nantucket Real Estate Updates

Mar 11, 2020       Issue: 433

J Pepper Frazier Company
Wauwinet Views

Mar 10, 2020


Mar 10, 2020


Mar 10, 2020


Mar 10, 2020

Hummock Pond

Mar 10, 2020


Mar 6, 2020


Mar 6, 2020


Mar 6, 2020


  Time to Invest?

With interest rates at all time lows and rents stable on Nantucket, could be a great time to buy. Let's say you purchase a $2mm property that would gross $150k in rent. You put down $600k and get a $1.4mm, 30 year fixed loan at 2.9%, so your payment is ~$6k/mnth., ~$72/yr. Deduct other expenses of ~$68k, including commission, and you cash flow $10k. Assuming the Nantucket real estate market trends very similarly to the S&P 500 over the long run, knowing the S&P 500 has appreciated 4.5x over the last 30 years and assuming that trend will continue over the long run, the $2mm property will be worth $9mm in 30 years, so you gained $8.4mm in equity on your $600k investment, a 14x cash on cash return. And, that doesn't take into account appreciation in rents (yes, expenses will go up, too, but your biggest one, mortgage payment, is fixed) or other benefits like depreciation and use of the property. This is very much simplified, but sounds compelling.

The market continues to crank.

Year over year comparison of YTD total volume:

'09 - $37mm *Lowest total yearly volume.
'10 - $81mm
'11 - $57mm
'12 - $73mm
'13 - $61mm
'14 - $144mm *$1bn+ year.
'15 - $137mm
'16 - $156mm
'17 - $124mm *$1bn+ year.
'18 - $197mm *$1bn+ year. Highest total yearly volume.
'19 - $119mm *$1bn+ year.
'20 - $164mm

  Be Prepared

We at JPFCO know it pays to be prepared. The other day we had clients flying in to see a few properties. The wife and husband were flying from different locations and due to delays the wife was not able to make it to the Island. The show must go on and the showings happened with the husband. The husband found a property that he really liked and thought his wife would love. Time to make it happen the JPFCO way. In being the professionally prepared real estate firm that we are, luckily the listing happened to be a JPFCO listing. We had prepared a video tour of the house for just this sort of situation. We provided the husband with the video in which he shared with his wife. His wife liked the video, the couple made an offer which was accepted and this is how we make it happen at JPFCO.

  Newlywed on Nantucket

Nantucket Island gets recognized for many things: The scenic beaches, cobblestone roads, the extravagant sunsets and the quintessential, New England charm, so what better place to get married?

In the last decade or so, Nantucket is now also being seen as the ultimate fairytale wedding destination. With roughly 200 weddings from the months of May-October, and netting an estimated $50 million for local businesses, it's safe to say the island has a healthy wedding industry.

When it comes to finding the right venue, there are many to choose from, but we've narrowed down our top 5 venues to celebrate a new beginning!

1. Dreamland Nantucket
2. 124 Tom Nevers Road
3. The Galley
4. The Whaling Museum
5. Westmoor Farm

If you are contemplating an island wedding or if you will be simply attending one, our office can help assist! Event Planner? We'll suggest the best ones out there! A Rental Property to host a private wedding? No problem. Rental houses to have friends and family stay? That's our job!

We are here to help you explore all the options there are in order for you to create your own enchanting fairytale wedding on Nantucket. Call 508-228-3202 to talk to one of our knowledgeable agents. Congratulations!
111 Hummock Pond Road $1,424,000

Custom 2 bedroom, 2.5 bath home in the Cisco area. Only high-end materials and craftmanship were used throughout including Icynene insulation, Rinnai on demand hot water and much more. House has an open feel with two large sliders leading to back deck that has great pastoral views. Well landscaped and irrigated (with well) yard and plantings. Abuts Land Bank property on one side and Bartlett Farm property across the street. Ready for summer occupancy!
  111 Hummock Pond Road 

One of the oldest and most experienced Nantucket real estate firms
JPFCO | 19 Centre Street Nantucket, MA 02554

Call Us: (508) 228-3202