Archive for June, 2008
Diamond Head Honolulu’s Landmark!
June 20th, 2008 categories: Views of Honolulu
Round Top Drive has re-opened! I took the opportunity to visit one of the best views on the island…the Round Top Look Out. This picture of Honolulu framing Diamond Head was taken at about 3:30 in the afternoon.
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Buying Property Through the Bankruptcy Court
June 19th, 2008 categories: Buying Honolulu Real Estate, Honolulu Real Estate 101
I have been fortunate to represent a number of U.S. Bankruptcy Trustees in the sale of Honolulu real estate. I find that many people think that the bankruptcy sales process is the same as a foreclosure. In some ways it is similar and in other ways it is totally different. Rather than comparing and contrasting the two processes, I am going to walk you through an outline of the bankruptcy (Chapter 7) sales process.
1. An owner of a property files Chapter 7 Bankruptcy and becomes known as the debtor. This will “stay” creditors from taking action to exercise their rights. Read the rest of this entry »
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2 Bedroom Close To Everything!
June 18th, 2008 categories: Buying Honolulu Real Estate
This 2 bedroom 1.5 bathroom condominiums is offered at $279,000. It has an interior square footage of 750 square feet, as well as a 75 square foot lanai with views of the Koolau Mountains and city lights. The building is perched on ridge that makes the unit cool due to the breezes that come from the valley below. Not only is the unit well located, but also it is also very clean inside. There is a tenant in the unit through the end of June and they have been paying $1,475 per month. You should be able to re-rent it in this range. The following is a brief analysis of a possible investment scenario based on a rental rate of $1,475 per month. Read the rest of this entry »
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Vintage Surfboards!
June 18th, 2008 categories: Rants & Riffs, Views of Honolulu
Earlier this week, I went to the Bankruptcy Court for a confirmation of the sale of a property (1132 Bishop Street, near the corner of Bishop & Hotel) and to my surprise the mezzanine lobby was filled with vintage wood surf boards. These pictures were take with my Blackberry Curve and I thought a few of you would find them interesting.
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20% Down Payment to Break Even?
June 18th, 2008 categories: Buying Honolulu Real Estate
This 3 bedroom 1.5 bathroom condominium is offered at $249,000. It has an interior square footage of 1113 square feet, as well as a large lanai with views of Kapolei. The unit needs work and the price reflects the room for you to invest your time and energy to make the unit the way you like it. Prior to filing bankruptcy, the owner installed a new sliding glass door, new kitchen cabinets and an extra deep Kohler tub. I checked with a local property manager and he felt that the unit would rent in a range between $1,700 and $1,900 per month. The following is a brief analysis of a possible investment scenario based on a rental rate of $1,800 per month. Read the rest of this entry »
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Honolulu Real Estate and Inflation?
June 17th, 2008 categories: Honolulu Real Estate 101, Rants & Riffs
More and more reports are coming out pondering significant economic inflation. As much as I don’t want to see the inflation of the late 70’s and early 80’s, I would be remiss to turn a blind eye to its possibility. Two recent articles at the Wall Street Journal’s website talk about signs that inflation may be on its way.
“Still, the Fed chief said, the runup in oil prices “has added to the upside risks to inflation and inflation expectations.” Timothy Geithner, Federal Reserve Bank of New York president, echoed those remarks in a separate appearance Monday.”
CLICK HERE TO READ THE ARTICLE.
“On Tuesday, China’s stock market was the latest to feel the blow, with the benchmark Shanghai Composite Index tumbling by 7.7%, to its lowest close this year. The drop came after the government announced steps to remove cash from the financial system in an attempt to tamp down inflation.”
CLICK HERE TO READ THE ARTICLE.
How does this tie into Honolulu real estate ownership? If inflation does happen, the price of everything will begin to rise. During our last inflationary period, real estate was a great hedge. Therefore, specifically purchasing more core Honolulu real estate could be a great place to be if inflation should come.
Today’s picture was taken from the a valley across from Makiki Heights and it shows some of the great homes located in Makiki Heights.
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Off Island Lender…Or Not?
June 16th, 2008 categories: Honolulu Real Estate 101
A blog by Cynthia Hoskins, of Clark Realty on the Big Island, inspired me to write about off island lenders. Cynthia writes the following.
“ Local lenders understand the Hawaii Purchase Contract and its contingencies and have established relationships with underwriters who are familiar with the unique aspects of the Hawaii real estate market–there are many!”
CLICK HERE TO READ HER ENTIRE POST.
Over the last several years, I have seen a proliferation of lenders from the mainland that are trying to make loans in Hawaii. I am sure you have seen them on local T.V. If you Google “hawaii mortgage lender”, it seems many of the lenders that come up on the first page turn out to be from the mainland.
Here’s my two cents, if at all possible use a local lender! Hawaii is not the mainland and because there are many unique aspects to our real estate law an off island lender can have difficulties. The recent revisions to the Hawaii Purchase Contract, gives a seller the right to cancel the sale if the buyer fails to meet the dates set forth in the financing section (paragraph C-25). I know of at least one case where the dates weren’t met and the sale was canceled. The buyer wasn’t happy, but the seller was within their rights to cancel so the buyer was out of luck.
From what I can tell, a buyer from Hawaii considering an off island lender is trying to get the lowest interest rate and cost associated with getting the loan. At the end of the day, I don’t see buyers getting great deals by going off island. If anything they end up getting poor service and a nightmarish loan process. Once a buyer finds a property they like enough to make an offer and go through the stress of a purchase, it’s a shame to possibly loose it as a result of the lender. Think about it.
Today’s picture is of the University of Hawaii and it was taken from the Round Top lookout.
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Honolulu Is Becoming Even Safer!
June 13th, 2008 categories: Buying Honolulu Real Estate, Rants & Riffs
Great news. Even though Honolulu seems safe, according to the Honolulu Advertiser, the crime rate has been declining over the last four (4) years.
“Law enforcement officials and observers credit the declining crime rate to a focus on repeat offenders, especially drug traffickers and car thieves, as well as increased community vigilance.”
As I have said before, quality of life issues make a city a great place to live. Do you think a better quality of life could add to the value of your real estate? I think so.
TO READ THE ENTIRE ARTICLE CLICK HERE.
Today’s picture is looking toward Kahala from Puu Panini.
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Should A Honolulu Seller Give Occupancy To A Buyer Before Closing?
June 12th, 2008 categories: Honolulu Real Estate 101
So you sold your house and now you’re a couple of weeks away from the close of escrow. The buyer’s lease has run out and they have to move. You get a call asking that the buyer be allowed to move in prior to the close of escrow. What to do? What to do?
Here is the short answer…run for the hills! Don’t let it happen! Squash the idea like a bug! Just say “No”! Am I clear? Any questions? Now for the long answer.
Other than feeling like a nice guy or gal, as I see it, there is no upside for a seller granting occupancy before the new owner owns the home. What follows is a list of the potential negatives.
1. If the buyer can’t close (loses loan, doesn’t have the down payment, or dies), you may now have a hold over tenant. Their things will be in the home and now, in the best-case scenario, they will need time to move out. In the worst-case scenario, it is possible you would have to evict the buyer from the home.
2. If the buyer can’t close, your once pristine home may now need cleaning and repairs to make it market ready again.
3. Given the additional time the buyer may need to move, you could be losing valuable marketing time.
4. Think of an early occupancy as month long inspection of your property. I advise that you disclose anything and everything you know about the property, but is it possible that the buyer could find issues of which you were unaware? If they found something, do you think they might try to renegotiate the deal?
5. Under Hawaii Law, if a material issue is discovered during the escrow process a buyer earns an additional 15 days to investigate the problem. If during this 15-day period the buyer decides they cannot get comfortable with the issue, they will have the right to terminate the sale no matter what document they may have signed. Wouldn’t that be nice, especially since they are now living there.
6. Once the buyer is in the home, is it possible they could start painting and remodeling? Of course it is. If this happened and the closing didn’t occur, you could end up having to finish what the started. This is getting better with every point!
I am sure this is not a complete list, but I wanted to help seller’s understand their exposure to giving the buyer early occupancy.
Today’s picture was taken from Lower Makiki Heights looking toward Roung Top.
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5 Honolulu Condo’s for Under $500,000
June 11th, 2008 categories: Buying Honolulu Real Estate, Honolulu Condominiums
Believe it or not, large 2 bedroom 2 bath apartments in Honolulu under $500,000 can be hard to find. Below are 5 that are located centrally to everything Honolulu has to offer. They are all over 1,000 square feet and are available to purchase now! Call me at 808-737-2093 or toll free at 877-737-2093 to discuss how they might fit into your plans.
Tropicana Village-Makai located in Kahala priced at $439,000
Fairway Manor located in Waikiki priced at $449,000
Waialae Gardens located in Kahala priced at $459,000
Academy Towers located in Makiki $490,000
Ala Wai Plaza located at Kapiolani and Unversity $498,000
FOR A FACT SHEET, JUST DOUBLE CLICK ON THE UNIT THAT INTERESTS YOU.
Today’s picture of Moana Pacific condominium, Hawaiki Tower condominium, Nauru Tower condominium among many other condo’s was taken from lower Makiki Heights.
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