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Southern New Hampshire Real Estate
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Manchester NH Real Estate

  • 1031 Exchange: How To Defer Taxes on NH Real Estate – a real estate agent’s guide

    To New Hampshire real estate investors: 1031 tax exchange allows tax deferred exchange of investment property. Considering to sell your NH house that has been rented out?


    If you have a single family rental property, a duplex, an apartment, commercial property or raw land you may qualify for a “tax free” exchange of “like-kind” property. Important: federal and state capital gain taxes on the sale are only deferred and not forgiven.


    The 1031 tax deferred exchange allows investors to use all of their proceeds from the sale of real estate in New Hampshire, and to leverage it into more valuable real estate, increase cash flow, diversify into other properties, reduce management or consolidate into one property.


    For example single family rental property in Londonderry can be exchanged for raw land in Windham, or apartments in Manchester or a commercial building in Nashua. In addition, your NH real estate can be exchanged for properties anywhere within the US.


    Benefits of 1031 exchange to investors in New Hampshire real estate:


    ü      Leverage: high equity property for highly leveraged property.

    ü      Diversification: commercial property for industrial apartments.

    ü      Consolidation: multiple property types for single property type.

    ü      Cash-flow: non-income producing land for triple-net leased property.

    ü      Management relief: multiple rental properties for single user commercial investment.

    ü      Increased depreciation: fully depreciated building for property with a new depreciations schedule.

    ü      Estate planning: one large building for properties designated for each heir.


    The real power of a tax deferred exchange is not just the tax savings - it is the tremendous increase in your purchasing power generated by this tax savings! With the advantages of leverage, every dollar saved in taxes allows you, the real estate investor, to purchase two to three times more real estate.


    Is your current real estate investment giving you everything you want out of your real estate investment?


    It may be time to explore the 1031 exchange: the alternative without a tax bite.

  • Home Buying: Guide to New Hampshire Property Tax Rates

    Home buyer: when buying a new home in New Hampshire how do I find out what my real estate taxes will be.


    For any home for sale in the MLS, the listing sheet should show the property taxes for the last year. In lack of that, here is a partial table of property tax rates for real estate in Southern NH in 2006.


    Name of                                Town     Educ  TownLocal EduState EduCountyTotal
    Municipality Town ValuationTax Tax Tax Tax Tax Commitment
    ATKINSON1,015,437,2941.948.682.320.8613.813,894,342
    AUBURN669,128,0331.478.72.240.8913.38,792,932
    BEDFORD3,085,197,9312.859.922.491.0816.3450,222,892
    DERRY2,951,488,9887.511.322.410.9322.1665,044,055
    HUDSON2,501,101,3524.748.672.671.1417.2242,546,325
    LITCHFIELD928,983,8412.0610.361.980.8815.2814,057,133
    LONDONDERRY3,267,784,8754.4410.552.430.8618.2858,473,104
    MANCHESTER9,589,899,4467.965.362.481.0516.85160,008,671
    PELHAM1,691,942,2383.247.742.080.9313.9923,377,812
    SALEM4,535,064,1514.355.072.320.8812.6256,420,780
    WINDHAM2,164,454,9702.959.262.280.8615.3533,096,424

    The complete document can be accessed here:  http://www.nh.gov/revenue/property_tax/2006/2006tax_rates.rtf


    A conservative estimate would be to multiply the “Total Tax” rate by the purchase price in thousands. For example, in Hudson the total tax rate is $17.22/thousands for 2006. Yearly property taxes for a property assessed at $300,000 would be estimated at  $5,166 or $430.50 per month. Actual assessment values may vary.


    Buying or selling a home is a complex financial transaction. Taxes may play a significant role in determining whether you can afford a certain home.  Use the financial calculator here to determine your total monthly payments including mortgage principal and interest, taxes and home insurance.


    Try not to base the selection of your future home and town on property taxes alone. Tax rates change yearly and are affected by unforeseen developments, town expenditures, commercial activity and general business conditions.


    Do not fall into the typical 1st time home buyers trap: do not overextend yourself. Secret to buying your first home and staying happy in it: buy a home that you can easily afford and does not stretch your finances.


    New home buying tip:

    A new construction home might have been assessed at land value only; to get a realistic property tax amount check with the town assessor’s office.