Broadhopper,
First off, you cannot compare a condo to a multi-family house. They are two completely different situations.
No, I don't own a multi-family. However, a close friend of mine just sold hers in the downtown riverfront district for $105K... the house needed ALOT of work. A contractor bought it, already renovated and rented the top apartment. I am sure it will be nice when he is done, but I seriously doubt it will assess for more than $200K when finished.
Your multi-family home is only assessed at $145,000. Why is this a bad thing? Its value is determined by the sales and assesements of other similar multi-family units in that neighborhood. Certainly you are not suggesting they should assess your multi-family higher than other comparable properties just because three families occupy it? It's a supply and demand system. As most multi-family units are usually located in less desirable sections, there is no real strong demand for them, and as a result they usually sell for alot less. Because they sell for less, they are assessed for less. You get to reap the benefits by paying less in taxes and being able to collect 3 rents. Rents, that are probably subject to NH business taxes.
Now, on to your condo...
Your condo can be rented to whomever you like. The government doesn't really care to whom you rent it to, as long as you pay the taxes. Just because its an elderly person living alone doesn't change anything. There are no tax breaks for elderly people, nor are there tax breaks for young families just starting out. Although an argument could be made for both.
The condo's value is determined the same way the multi-family units value is determined. However, there is a much stronger demand for condos that drives the sale prices/assessed value higher. This results in higher property taxes for the condo.
Laconia, especially in the Weirs, in my opinion has gone condo crazy. I assume this is because condos make much better second homes especially in regards to maintenance and upkeep. There have been several motels converted to condos and lots of new condo development that have really played havoc with the condo valuations. I have seen a condo that is essentially nothing more than your run of the mill motel room (150 - 200 sq ft or so) sell for $80K to $90K... I personally think $90K for a motel room is nuts... but it works for some people, and allows them to get access to the lake that they would not otherwise have. So its good for them.
The average price for a nice townhouse condo in Laconia is approximately $200K. I looked at purchasing a condo at Overlook prior to buying my house 4 years ago. The purchase price was $105K. That very same condo was just sold in the paper for just over $200K! The guy made $100K in 4 years... crazy (but the market is/was crazy) and he made good money! I do think those days are slowing somewhat. As interest rates ratchet up, home sales will slow and stabilize somewhat.
Woodsy
|