By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 28th, 2008 Category: Deep Creek Lake Real Estate

The dramatic growth in real estate values and assessments in Garrett County Maryland over the past ten years, particularly the Deep Creek Lake area, has reaped huge economic benefits for local citizens and county government.

Real property in Maryland is subject to tax with the rates and assessments varying widely between jurisdictions. As most property owners know, the amount of property tax that you eventually pay is based on two criteria, the assessment (determined by the state and presumably based on a property’s value) and the rate of tax (two rates - set by the local jurisdiction and the state legislature). The state regularly reassesses property values on a three-year cycle. Tax rates can change yearly.

In Garrett County, the Board of County Commissioners sets the county real property tax rate. For FY 2009 (starting July 1), it will remain at $1.00 per $100 of assessed value. The county estimates that more than 65% of its anticipated local revenue, or almost $39 million, will come from real estate related taxes during this coming fiscal year. Real estate related taxes also include local transfer and recordation taxes. The state’s property tax rate is much smaller and remains unchanged at $.112 per $100 of assessed value.                                          

Compared to two fiscal years ago, county revenue has increased by more than $8.5 million, mostly due to the increase in property related taxes. The next highest source of county revenue is income taxes, which represents only about a third of the revenue obtained from real estate. Property related taxes drive the county budget and the services it provides.

In FY07, real estate related taxes represented about 58% of the county’s revenue sources. A decade or so ago, the percentage was within the 50% range. This increase over time demonstrates the strong value of the assessable property base on the local level and the county’s increasing reliance on it to fund the county budget. 

How does Garrett County compare to the rest of the state? In FY 2008, sixteen counties (including Baltimore City) had lower real property tax rates, with Garrett ranking 7^th  in the state.  Its recordation tax rate during the same period ($3.50 per $1000) was about in the middle of the range of counties, tied with Wicomico County on the Eastern Shore.

Over the next two years, the MD Department of Assessment and Taxation estimates that the assessable real property tax base in Garrett County will increase by more than $245 million. Since FY 2001, the assessable base has increased by more than $2.3 billion to a level over three-times that of the late 1990s. This rate of increase has allowed property tax revenues to surpass all other forms of county revenue.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 13th, 2008 Category: Heritage

The Deep Creek Lake experience is an opportunity to slow down and enjoy a more relaxing pace. This slower way of enjoying life is part of the attraction and charm of our mountain resort. Those new to the lake area may not know it, but at one time both locals and visitors alike were actually required to slow down. It all depended on the route you chose to drive from one end of the lake to the other.

When the lake was constructed in the 1920s, travel by car was a luxury that not everyone had the opportunity to enjoy. To get to this area, most visitors arrived by steam train at the B&O station in Oakland and utilized local transportation along the winding gravel “State Road” (Route 219) north. The damming of Deep Creek in the 1920s blocked some local roads and new bridges were required to keep some of them open. Several long steel arch truss bridges were needed to span the lake. Construction on these new bridges was completed before the lake was flooded.  Three steel structures were eventually built - along the State Road crossing the center of the lake, the Glendale (Road) Bridge at “Cat Rocks”, and finally a much later and smaller bridge over Meadow Mountain Run near the state park.

Back then, the typical Ford or Chevrolet required less roadway than today’s cars. The new bridges incorporated lightweight see-through steel grid bridge decking and lanes that were, at the time, thought to be wide enough. The design allowed motorists to pass each other freely across the bridges as they drove through and around the lake.

The old State Road bridge had wider lanes then did the Glendale Bridge and, except for the occasional big load, traffic usually flowed relatively freely north and south. However, the Glendale Road bridge was designed with a much narrower deck and it often had short backups during the summer months. As cars became bigger and faster, courtesy and patience was required after motorists learned that the Glendale Bridge could now only accommodate one-way traffic. New rules of the road developed, i.e. whoever dared to start across the bridge first ruled the road. Being courteous and waiting did have its benefits, mostly being the chance to enjoy the sweeping views across the lake south to Turkey Neck or north to Marsh Mountain.

It was customary to wave at or politely greet the waiting car as you passed them at the other end and they then took their turn to cross the bridge. Still, confrontations occasionally occurred when drivers did not know or understand the rule. Many a visitor’s boat or camping trailer needed to be backed rom the Glendale Bridge after having started partway across.

As the Glendale Bridge aged, it developed its infamous but endearing “kablam, rumble, rumble, rumble” sound effect as cars moved across it, a sound that could be heard fairly far away late at night. Especially if one was camping at the state park.

Both bridges grew old gracefully and were eventually replaced with today’s structures. The State Highway Administration replaced the State Road/Route 219 bridge in 1986. The site of its southern abutment can still be seen at the DNR fishing area adjacent to the new bridge. The Glendale Bridge stubbornly held on for another 11 years, eventually succumbing to deterioration and neglect in 1997.

As a fond and fitting farewell to the slower life, a handful of locals held an impromptu celebration and dance on the old Glendale Bridge just before its demolition. A final memorial to times gone by and to the many memories made waiting for others to cross.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 6th, 2008 Category: Deep Creek Lake Real Estate, Fractional Ownership

If you are thinking about purchasing a vacation home at Deep Creek Lake, you may first want to learn more about the hottest trend in real estate and second home ownership. The very wealthy have been doing fractional ownership for years and while it’s a newer trend at Deep Creek Lake, owners in places like Aspen, Colorado and Jackson Hole, Wyoming have been enjoying the benefits of fractional second homes since the mid 1990’s.

What is Fractional Ownership?

It’s a vacation ownership option that allows deeded ownership in a luxury vacation property with the costs shared among owners, and a defined number of weeks for use spread throughout the year. In our market, the most common ownership percentage is 1/6, allowing 8 weeks of use per year, but 1/5 is also available with 10 weeks use per year.

Benefits

Who would benefit from the fractional ownership experience? Our owners tell us they were drawn to fractional ownership for the following reasons:

• They spend their vacation time with family friends - they don’t spend any time doing maintenance on their second home.
• They’re busy people and want the ability to enjoy a luxury vacation home and own what they have the ability to use.
• It’s the perfect getaway for those special family occasions. A place they can return to year-after-year and leave as a legacy for children and grandchildren.

If you want to learn more about this innovative ownership model, please join Railey Realty and Second Homes at Deep Creek Lake for a brief presentation on fractional home ownership and property tours every Wednesday at 9:30 a.m. from June 25th thru August 20, 2008. Seating is limited, so please make advance reservations at www.dclseminar.com or contact Terry Boggs at (800) 544-2425 ext. 3021.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 4th, 2008 Category: Deep Creek Lake Activities, Deep Creek Lake Area Things To Do

There is no doubt many people buy real estate here at Deep Creek Lake and in Garrett County, Maryland for the activities and lifestyle this four season resort area offers. Recently, Becky Sciullo, who is the author of The Deep Creek Lake Blog, wrote a great post a few weeks ago that compiled a “Deep Creek Lake Bucket List” after soliciting ideas from readers and from her own experiences. For those of you that don’t know - the movie titled “The Bucket List” was about two terminally ill men who leave their hospital and head off to do a list of activities they’ve always wanted to do before they die.

After discussing her post with some other real estate agents and realtors in our office we came up with a few other activities and things to add to this list. 

• Mountain biking the Margroff Plantation near Accident, Maryland. Mostly single-track trails. It’s not too hard - but not too easy either. Margroff Plantation is part of the Savage River State Forest.
• Riding ATV’s and four wheeling in Yough Mountain Resort. Of course you must do so with an owner in this neighborhood.
• Snowmobiling between the Oakland County Club and either Pawn Run Saloon for a Friday night steak or JG’s Pub for some really good bar food.
• Wake surfing on Deep Creek Lake. The newest water-sport fad. You gotta have a big boat with a big wake to do this activity - but wake surfing isn’t that strenuous on the body, is a lot of fun, and can be done on the most busiest of weekends - unlike waterskiing or wakeboarding where flat water is usually required. ** Please note you must use a straight Inboard boat to do this activity. The propellor on an Inboard boat is beneath the boat and not sticking out the back like an I/O or Outboard drive boat. Also, be aware that their is a slight carbon monoxide danger as well - as you are sometimes surfing the boat’s wake right behind where the exhaust of the boat is coming out.
• Attending the Fireman’s Parade and Oktoberfest celebration in downtown Oakland, Maryland the Thursday of Autumn Glory Weekend. Great food, an Oompah Band, and great party.
• Going to the Little Yough Music Festival, also in Oakland, which is held every Friday night in the summer. They have really good bands and it’s free admission.
• Drinking a specialty coffee and eating lunch on the deck at Canoe on The Run in the summer.
• Shopping the Labor Day Weekend ski specials at Rudy’s at Wisp and High Mountain Sports.

While we are not suggesting you have to be terminally ill to do these activities - above are just a few more things and activities that make this area such a great place to buy a vacation home.