Archive for February, 2009
Obama Targets Raise In Capital Gains
February 27th, 2009 categories: For Sellers, Rants & Riffs
Hang on to your wallet! Newsmax.com has an article that outlines all of the proposed tax increases our new President is proposing in his new budget. Owners of Honolulu real estate should be most concerned with a proposed increase in the capital gains tax.
“Tax rates on capital gains and dividends will rise to 20 percent for top earners, up from the 15 percent rate set by former President George W. Bush in 2003.”
CLICK HERE TO READ THE NEWSMAX ARTICLE
If you are thinking about selling your Oahu investment house or condo, then you might want to get it sold before this new budget is passed by congress. The cynic in me is concerned that the Washington pocket pickers are going to make it retroactive and that it is already too late.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
| Discussion: 1 Comment »
Honolulu Least Affordable Housing In U.S.
February 27th, 2009 categories: For Sellers
Pacific Business News is reporting that Honolulu has the least affordable housing in the United States. In the world, Honolulu is second only to Australia’s Sunshine Coast.
CLICK HERE TO READ PBN’S ARTICLE
Call me at 808-737-2093 or 877-737-2093 to discuss your real estate need. Email me at keahi@lava.net
| Discussion: 1 Comment »
Honolulu Vintage Home Worth Remodeling
February 27th, 2009 categories: Rants & Riffs
As I was driving through Kaimuki, this classic home jumped out at me. Even though its vintage green and white paint is fading. It has many of the qualities one would look for in a Honolulu home worth remodeling (porch, roof line, siding, layout, etc.) It looked like someone was prepping the home for a new paint job, this may point to an ongoing reclamation of one of our historic homes. I’ll keep you posted.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
| Discussion: 1 Comment »
Vintage Home Is A Great Example
February 27th, 2009 categories: Rants & Riffs
Some has done a great job with this cute and cozy Kapahulu bungalow. It is great to see the preservation of these Honolulu beauties. If you own a home like this you may want to apply for historic status, this could save you a pile on taxes. Double click on the picture to see a much larger version. If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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Better To Buy In Honolulu Than To Rent!
February 26th, 2009 categories: For Buyers, Military
If you are going to live in Honolulu for less than 2 years, in any real estate market, I have always believed you are better off renting than buying. If Oahu is going to be your home for the mid to long-term, than I advocate purchasing rather than renting. A recent Wall Street Journal article, confirmed that recent drops in values and interest rates have made owning more beneficial than renting.
“Over the past 18 years, after-tax mortgage payments have averaged 26% more than rent payments, according to Green Street Advisors, a real-estate consultancy based in Newport Beach, Calif. In 2006, at the height of the housing bubble, mortgage payments reached as high as 66% more than rent payments. But by the end of 2008, average monthly rent for the largest 50 metropolitan areas was $1,045, compared with after-tax mortgage payments of $1,300, assuming a rate of 5.5% on a 30-year fixed mortgage. That means mortgage payments averaged just 24% more than rent payments, the narrowest gap since 2001.”
CLICK HERE TO READ THE WSJ ARTICLE
The gap between rental rates and mortgage payments are important to consider, but they are not the only reason to buy. Don’t forget these important reasons too.
1. Long-term equity appreciation. I don’t have a crystal ball, but do you think Honolulu real estate values will be higher or lower in 2019?
2. Forced savings. Here is an example, if you obtained a $100,000 loan at 5.5%, that is fully amortized over 30 years, then in 10 years you would owe approximately $82,541! Assuming no appreciation, by paying down the mortgage you will have built equity in your property of $17,459.
3. Stability and control. I have not see statistics, but I will bet you donut that renters move way more often than those who own their home. By owning you control your destiny, no one can give you a 45-day notice to vacate and therefore you life is much more stable.
4. Pride of ownership. As a renter, if you improve your rental when you leave you will not benefit from the improvement. Therefore, most tenants do little to improve their residence. Once a home is owned, I have noticed that the new owners generally begin adding and improving it to their tastes and I think this is because they own it and can take pride in that fact.
5. Decorating to your hearts content. Most landlords try to keep their rental bland, because light carpet and white walls are generally easier to rent than unusual colors and floor coverings. As a renter, you may find it difficult to gain a landlords permission to paint a wall red or blue, or to change the bathroom tile to black granite. Once you own, have at it. Make your home what ever color you like, put up the picture of Elvis and install the bidet.
There are many other reasons to own. Frankly, I think 1 through 5 above far out weigh the gap between rental and mortgage payments. If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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A Beautiful Place To Live! But The Traffic!
February 26th, 2009 categories: For Buyers, Military, Neighborhoods
The local blog “Aloha Update” has an excellent post on the traffic one faces when commuting from the windward side.
“Monday through Friday, before sunrise, beginning at 6:00 am is when bumper to bumper traffic starts in Kahalu’u around Ahuimanu Road and Ahuimanu Place going towards Kaneohe. In the morning, it can take me about 15 minutes from Ahuimanu Road. to Haiku Road, which is only approximately 3 miles. Without traffic this route should only take about 3 minutes. This morning traffic lasts until about 9:00 am. For the after work flow going the opposite direction from Haiku Road to Kahalu’u, this traffic-jam begins at about 3:00 pm and can last up until 7:00 pm!”
CLICK HERE TO READ THE ENTIRE BLOG.
If you have followed my blog for an extended period of time, you know that I have ranted over and over about the impact of traffic on real estate. Aloha Update’s post confirms the impact of traffic on quality of life and therefore real estate values.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
| Discussion: 2 Comments »
Another Honolulu Vintage Beauty
February 25th, 2009 categories: Rants & Riffs
Here is another Honolulu vintage home. It is located in the very desirable neighborhood of Kahala. Double click on the picture to see a much larger version. If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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When The Best House Might Not Be The Best Investment
February 25th, 2009 categories: For Sellers, Rants & Riffs
With the upheaval in the Oahu real estate values, buying the best house might not be the best investment. Below are two fact sheets for homes that are priced just under $700,000. The Ocean Pointe home is 2,894 square feet, double wall construction and was built in 2007. It is a very nice house and it is priced at $698,000. The second home is located in Manoa on Sea View Avenue (about two blocks from the University of Hawaii); it is 1,900 square feet, built in 1980 and is priced at $685,000.
Ocean Pointe
Sea View
At first blush, one would assume that the Ocean Point home is the better buy. It is newer, larger and in a planned community. However, over the next 2 to 3 years, I would not be surprised to see its market value drop dramatically! Here’s why. Read the rest of this entry »
| Discussion: 1 Comment »
Banker Writes On Mortgage Bailout
February 24th, 2009 categories: Rants & Riffs
This interesting letter was posted at Hugh Hewitt’s blog.
“The refinance plan applies only to those whose loan is owned or securitized by Fannie or Freddie. This part actually will work. What this part really does is reduce underwriting criteria at Fannie and Freddie. It enables homeowners whose loan-to-value ratio would be over 80% to qualify to refinance.”
CLICK HERE TO READ THE ENTIRE POST
| Discussion: 1 Comment »
Vintage Honolulu Home
February 24th, 2009 categories: Rants & Riffs
Here is today’s Honolulu vintage home. It can be found in Kahala on Aukai. Take a close look at shingle siding. Double click on the picture to see a much larger version. If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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