Banker & Tradesman December 21, 2015

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JANUARY 15 | MOHEGAN SUN REGISTER TODAY! www.nemortgageexpo.com Est ab li s h e d 1 8 7 2

the

financial

www.bankerandtradesman.com

WEEK OF MONDAY, DECEMBER 21, 2015

services

and

real

estate

weekly

for

massachusetts

A Publication of The Warren Group DOING WELL, DOING GOOD

NEW AND IMPROVED

REMODELS RARELY RESULT IN ROI

Smaller Projects, Energy Improvements Lead The To-Do List BY JIM MORRISON BANKER & TRADESMAN STAFF

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gents have been telling sellers for years that while there are select home improvements that can net extra cash when it comes time to sell, they can’t expect to recoup every investment – and now there’s data to prove it. In October, the National Association of Realtors (NAR) surveyed random samples of its membership to find out more about remodeling projects. The survey asked why respondents did the project, how much they enjoyed it and how much value it added to the house. The results were compiled into the NAR 2015 Remodeling Impact Report. Unsurprisingly, Realtors reported complete kitchen renovations, kitchen upgrades and bathroom remodels as the most like to increase the value of a property and the most likely to increase appeal to potential buyers. The full results of the survey are available on NAR’s website. Most of the 4,211 respondents in the two surveys (one focused on interior projects, one on exterior projects) remodeled to upgrade something that was worn out, improve livability or just because it was time for a change. The report assumes a 2,450-squarefoot-house built after 1978 and in good condition with no hidden issues. The report also assumed that mostly builder-grade appliances and materials were used. No high-end projects were included in the data. Banker & Tradesman asked several Massachusetts Realtors what remodeling projects make the most sense to increase value in the Bay State’s current frenzied market.

Painting Pays

David Stead, a Worcester County Realtor since 1992, said there are some basic, short-term projects a homeowner can undertake to improve the appeal of the house to prospective buyers and perhaps tweak the value, but

WILLING TO REMODEL? 52% Urban 55% Suburban 70% Rural 35% Would rather move

MOST IMPORTANT OUTCOMES 34% Better functionality and livability 17% Durable and long-lasting results, materials,and appliances

15% Beauty and aesthetics 15% Added personality

Responsible Investing Gains Ground Millennials, Boomers Align Investments With Personal Values BY LAURA ALIX BANKER & TRADESMAN STAFF

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his time of year, financial services companies love to talk about “doing well by doing good,” but the Millennial generation and the advent of big data are taking socially responsible investing to a whole new level. Socially responsible investing – which sometimes also goes by ESG, for “environmental, social and governance” – is not an especially new idea. The concept originally dates to the mid-18th century when the Religious Society of Friends (also known as the Quakers) prohibited their members from participating in the slave trade. Socially responsible investing (SRI, for short) later gained traction in the 1980s and ’90s as investors began divesting from companies in South Africa as a means of fighting apartheid. In recent years, SRI has taken on a much more inclusive flavor. While once religious investors might have sought to avoid investments in, say, tobacco products, now you might see Baby Boomers wanting to support clean energy or genContinued on Page 9

Source: NAR’s 2015 Remodeling Impact Report

COMMERCIAL INTERESTS

Permits Drop In 2015

Bankers Side-Eye Level Of Development BY SCOTT VAN VOORHIS BANKER & TRADESMAN COLUMNIST

In the first 10 months of the year, Americans spent $326.1 billion on remodeling projects.

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CONTENTS

Residential �������������������������������������������������������������� 8

Points ����������������������������������������������������������������������� 4

Banking & Lending �������������������������������������������������� 9

By The Numbers ������������������������������������������������������� 6

Commercial & Industrial ����������������������������������� 12

SPECIAL SECTION

In Person ������������������������������������������������������������������ 7

Classified Sections �����������������������������������������14

Focus On Philanthropy �����������������������������������10

Records Section �������������������������������������������� B1

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as Boston’s epic building boom finally peaked? Or is it just taking a breather? That’s the question after the latest numbers show a 27 percent decline in new projects being approved at Boston City Hall in 2015. Particularly troubling is the relative fall-off in new condos and apartments approved by the Boston Redevelopment Authority, which fell to the lowest total since at least 2011. The numbers have to be put in context of the huge amount of new residential and commercial construction that has helped transform Boston over the past few years. But it also matters in what direction those development numbers are trending, and a 27 percent drop is probably not a complete statistical anomaly. In fact, it comes at a Continued on Page 3


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