Archive for July, 2008
Hawaii’s Land Court
July 16th, 2008 categories: Honolulu Real Estate 101, Rants & Riffs
In 1903, Hawaii adopted an alternative land recordation system, which is referred to as the Hawaii Torrens Land system-or more commonly referred to as “land Court”. Believe it or not, it was modeled after a system for registering ships. “Hypothetically” the government provides a guarantee for the title to a home, condo or piece of land. The key word in the last sentence is “hypothetically”, please don’t believe that the government will protect your title. As with all real property purchases, be sure to obtain title insurance (whether or not the property is in land court). I am not going to go into all of the nuances and challenges that one can face with property registered at the land Court, however, my purpose is to warn you to be sure to thoroughly investigate any property you may be purchasing which is registered in the land Court. The Land Court is especially relevant to Honolulu because Oahu has more land court registered land than any other island in Hawaii. I would like to focus on one aspect of the land Court that could impact parties making loans or obtaining judgments secured by Hawaii property. Read the rest of this entry »
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Honolulu’s “Kooky” Cooperatives!
July 15th, 2008 categories: Honolulu Real Estate 101, Rants & Riffs
Honolulu as a type of apartment, which is a throwback to by gone days. Before condominiums, the only way to own an apartment was through the purchase of a cooperative (Co-op). I am told that cooperatives are legally real estate (if leasehold, the lease must be greater than 30 years). Even though they are considered real estate, these apartments can have unusual rules. Before completing the purchase of cooperative, be sure to carefully read all of the documents pertaining to living in the building and the governance of the Association. The following are a few of the more unusual rules that I have run into (note that not every Co-op has all of these rules). Read the rest of this entry »
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Oahu Beaches Are Among The Sexiest!
July 15th, 2008 categories: Rants & Riffs
I don’t know how the measured “sexiest”, but according to Concierge.com Honolulu and Oahu are right up there!
“… Oahu’s ranked eighth, just ahead of St. Lucia and being No. 7 Lanzarote in the Canary Islands.”
CLICK HERE TO READ THE HONOLULU ADVERTISER ARTICLE.
I know what you’re thinking…what does this have to do with real estate? I can’t draw a direct line to an increase in value, but it can’t hurt it!
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Ways Condominium Associations Can Help Or Hurt Your Value.
July 14th, 2008 categories: Honolulu Real Estate 101, Rants & Riffs
A Honolulu apartment owners association can positively or negatively affect the value of the units in a particular building. Here are four ways they impact your property.
#1. Maintenance fees. We all know that it is desirable to have as low a maintenance fee as possible, however, most associations have to balance the maintenance fees charged with their needs to maintain and operate the building. Every segment of the market has a range in which a maintenance fee is considered reasonable and above which it is considered too high. Once a maintenance fee goes beyond the level of being reasonable, then prospective purchasers will start discounting in the value of the apartment in proportion to the amount of mortgage that the overage on the maintenance fee will pay for. If $100 a month will carry a mortgage amount of $16,200, then one could draw the conclusion that every $100 over the perceived acceptable high maintenance fee for a building will cost the seller approximately $16,000 in lost equity. With this in mind, the level of a maintenance fee can make or lose money for the owner of a condominium. Read the rest of this entry »
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The Hard Conversation
July 11th, 2008 categories: Rants & Riffs
Real estate is a great business. As a Realtor, I have the opportunity to represent people in the sale or purchase of one of their most significant sets. As a result, I am required to have ongoing consulting and advisory conversations concerning various aspects of a transaction. I classify these conversations into to groups, easy and hard. Read the rest of this entry »
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Honolulu Property Taxes (Are they low?)
July 10th, 2008 categories: Reasons To Sell
While speaking with a potential client in California, I was surprised to discover that she was making plans to move to Honolulu. Apparently, Californians are being taxed at such a level that many are looking for states with a more bearable overall tax structure. I found it interesting that she would consider Hawaii a more friendly tax environment, as we are not generally thought of as a low tax State. Hawaii does have a high tax burden, but when it comes to property taxes many people consider our property tax rates to be very low.
As an example, if a person were to buy a home for $750,000 in each state, the person buying in Honolulu would pay $2468 per year in property taxes. The California purchaser, in most cases, would pay $9375 per year. That’s the difference of $6907 per year, or about $575 per month. Before I started writing this blog, I didn’t think that the difference was as great. This difference, however, could pay for a very nice vacation for a family of four or the monthly payment on a luxury car.
Given our quality of life and the savings on property taxes, Honolulu maybe attracting more mainlanders from high tax burden states. Could this lead to more demand for Honolulu properties? I think so.
CLICK HERE FOR A SHEET THAT SHOWS MOST OF HAWAII’S VARIOUS PROPERTY TAX RATES.
Today’s picture is all a six-man outrigger canoe just after the start of a race in Waikiki.
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Reasons Not To Own Your Home In Honolulu!
July 9th, 2008 categories: Reasons To Sell
Even though this blog came from a Cleveland Ohio real estate company, most of the reasons not to own a home in Honolulu are applicable. None of these reasons may apply to you, however, read the entire list for a great laugh.
” # Your time line for living in your new home is the same time line as the bank’s foreclosure process.
# You’re banking on paying your mortgage by renting your bedrooms to friends who don’t have jobs.
# You’re planning on quitting your six-figure job and following your dream of selling ice sculptures on eBay.
# You don’t know the difference between the smell of leaking gas from the furnace and Downy fabric softener.
# You think your landlord will come over at 2am when your water heater is flooding your basement.”
CLICK HERE TO READ THE ENTIRE POST.
Today’s picture of the Royal Hawaiian Hotel was taken from the starting line of this past weekend’s canoe race.
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Thank Goodness The Fed Is Holding Fire!
July 8th, 2008 categories: Reasons To Sell
Today’s Wall Street Journal reported that the Fed would not require Fannie Mae or Freddie Mac to increase their reserve deposits. Thank goodness. In my opinion, much of the last major financial meltdown that occurred during the Savings and Loan crisis of the 1980s was a result of regulators increasing the deposit requirements for those companies. If the Fed had required lenders to increase their on hand deposits, I believe you would have seen a significant number of lenders stop or greatly reduce the number of new loans they would make. In a market that is already experiencing tighter lending requirements, further tightening could lead to unnecessary damage.
“The top regulator for Fannie Mae and Freddie Mac said Tuesday that future accounting rules would likely not lead regulators to demand that the huge mortgage-finance giants hold more capital, addressing fears that punished the stock prices of both firms on Monday.”
Click here to read the Wall Street Journal article.
I am told that Bank of Hawaii and the First Hawaiian Bank did not significantly participate in sub-prime mortgage markets and, due to this, are in good positions to continue lending in Honolulu market. It is good to see that our local banks decisions to remain conservative have come back to serve all of us.
Today’s picture was taken at the beach side finish line of this past weekend’s cut into race.
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Generalities vs. Specifics in Honolulu Real Estate
July 7th, 2008 categories: Honolulu Real Estate 101, Reasons To Sell
Generalities. In general they can be right and in specific they can be wrong. A prime example is the general condition of most real estate markets in the U.S. Most news reports and people espouse the idea that the housing market is not doing well. In general they may be right and in specific they can be wrong.
This year I have been selling lots of houses and condos. Most of my sales have been my listings and a number have been buyers that I represented. Many of my listings (not all) have been selling within weeks of coming on the market (how is this in a “soft” market?). I have found there to be three keys to having a property sell fast and thus make it a “good” market.
Pricing. Please read my recent post regarding my thoughts on pricing Honolulu real estate.
Condition. In this market, buyers are looking for a home that is clean and does not require immediate work to upgrade the property. They want to move right in and begin living rather than having to remodel or paint the place. Do what you can (manage the cost) to make your property look clean and crisp.
Balance. There has to be a balance between the current market price and condition of the home. A seller can have a very clean unit that requires no work, but if the price is outside the expected sales range, then it will sit and not sell. I have noticed that if a property is expected to sell at “X” and it is priced at “X”, in this market, it will sell right away.
Don’t believe the generalities. Look at a specific property, assess its condition and price, and then balance the two to arrive at a sale that doesn’t count on a good or bad market.
Today’s picture was taken during this past 4th of July’s MacFarlane Canoe Regatta. I love the unfolding drama with Diamond Head as a back drop.
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Happy 4th Of July! Celebrate!
July 3rd, 2008 categories: Views of Honolulu
Today’s picture was taken from the water looking toward Lanikai and Bellows Beach. This Fourth of July take a moment to count your blessings. As Americans, we are sooooo fortunate and have a great deal to be thankful for. Enjoy the long weekend, the BBQ’s and your family!
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