New Hampshire might not be on everyone’s radar for real estate investment, but it should be. According to Home Union, New Hampshire is mainly known for its incredible landscape in mountains, forests, and other kinds of green space, but New Hampshire also has it all in terms of employment and cost of living. It is the eighth richest state in America and has a very low unemployment rate. It is also currently ranked as the third safest state in America.
The New Hampshire economy is currently powered by industries like health care, manufacturing, and information technology. It is a rapidly growing state with a rapidly growing population. What most people don’t know about New Hampshire is its tax policies — there are no state sales taxes, income taxes, or capital gains taxes in the state, and pension incomes are also tax free. However, it’s important to note property taxes in New Hampshire are the third highest in America.
Despite a reputation for cold winters like the rest of New England, New Hampshire has recently been known for being a haven for both young professionals and retirees. There has recently been a surge in demand with affordable housing, great jobs, and an attractive landscape and environment.
There are lots of great cities in New Hampshire to invest in real estate. There are smaller towns like Derry and Concord, but there are also major cities like Nashua and Manchester, which are very close to the state’s border to Massachusetts.
There are currently both buyer and seller’s markets in New Hampshire. Derry is a buyer’s market where supply is outpacing demand, and where homes are selling slow and for lower than listing price. It’s the opposite in Nashua and New Hampshire, where homes are selling fast and for higher than listing price. In alignment with the housing bubble in the rest of the country during the pandemic, demand is rising in New Hampshire.
No matter the market, hard money loans are a viable option for investing in real estate in New Hampshire. Hard money loans are an alternative source of financing
In seller’s markets, hard money loans are known for their very fast speeds of approval. They can be approved in a couple of days, which are significantly faster than the approval speed of traditional mortgage loans, which can take a month or more to be approved. Seller’s markets require very fast financing for bidding wars in competitive markets.
In a buyer’s market like Derry, hard money loans give a very different advantage. They can be used to purchase cash-only properties, properties that can only be purchased with cash. But in real estate, it’s a little more complicated than that — cash-only means the home is in such a state of disrepair the bank doesn’t want to touch the property.
However, hard money loans can qualify as cash in cash-only purchases. They can qualify as cash because they were designed for repairing homes in disrepair and then flipping them — hard money loans are mainly used for transactions like fix and flips and long-term rentals.
In both buyer and seller’s markets in New Hampshire, hard money loans can be used to buy homes in disrepair and then flip them for significant profit. They’re different from traditional mortgage loans because they use the property as the asset, and they are also different because they have stricter terms and rates, particularly much higher interest rates.
That’s why it’s important to only trust the best hard money lenders — an area we at Hard Money Lenders IO have you covered. Here are the best lenders in New Hampshire.