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Archive for the 'Buying Honolulu Real Estate' Category

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 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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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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Building a Honolulu Real Estate Empire!

June 11th, 2008 categories: Buying Honolulu Real Estate

Disclosures Before You Read This Blog.
1. The FHA may not allow the purchase of multiple properties.
2. Lender guidelines regularly change and loan programs may not be available in the future. Specific terms outlined herein could change too.
3. The interest rate of 6% is an example and may not be available when an attempt is made to get a loan.
4. A 3% appreciation rate is an example. It is possible that you could experience little or no appreciation. It is possible you could experience negative appreciation. DO NOT RELY ON THIS BLOG TO DETERMINE AN EXPECTED RETURN ON INVESTMENT.
5. All estimates made in this Blog, are for discussion purposes only and should not be relied on for purchase or investment decisions. Should you decide to follow any portion of this plan, it is imperative that you seek legal and tax advice regarding its application to you and your financial goals.
I am 47 years old and I am going to outline a plan that may be too late for me to use. Federal Housing Administration (FHA) Loans have long been the mortgages that offer the lowest down payments for anyone that is not a veteran of the armed services. With the debacle in portions of the general mortgage industry, FHA Loans are one of the few sources for parties with small down payments to get a mortgage for their home purchase. Here are a few nuances of FHA mortgages.

1. They can be obtained with 3% down payment

2. Their lending guidelines are more forgiving than most conventional lenders (they will accept much lower FICO scores).
3. The FHA will inspect the property and may require repairs to bring it to FHA standards.
4. You are required to live in the property.
5. A seller can credit a buyer up to 6% of the purchase price toward closing costs.
6. Gift down payments from relatives are acceptable.

So here’s the plan. Read the rest of this entry »

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Honolulu 3 bedroom Condominium Investment

June 10th, 2008 categories: Buying Honolulu Real Estate, Honolulu Condominiums

This 3 bedroom 1.5 bathroom condominium is offered at $350,000 and it is in a Honolulu condominium called Terrace Towers. At 918 square feet it comes with one open parking stall. The kitchen and bathroom cabinets were changed in 2006 and the unit would make an excellent home for a first time buyer or rental income property for an investor. I checked with a local property manager and he felt that the unit would rent in a range between $1900 and $2300 per month. The following is a brief analysis of a possible investment scenario based on a rental rate of $2200 per month.

Monthly Expenses
Maintenance fee $379
Property Taxes $95
General Excise Tax $104
Total $578

Monthly Rent $2200
Less Expenses $578
Net Income Before Mortgage Payments $1,622

An investor mortgage payment of $1,622 at 6.5%, amortized over 30 years will carry a mortgage of $256,000.

Based on a new loan of $256,000, a buyer of this property would need a down payment of $94,000.

CLICK HERE TO SEE A MARKET ANALYSIS FOR TERRACE TOWERS.

Terrace Towers is a healthy walk from the University of Hawaii, two blocks from Iolani School and 5 to 10 minute drive from Ala Moana Shopping Center or Waikiki. There are four different freeway entrances a 1 to 2 mile drive from your parking stall. Do you have a student ready to attend one of the very close universities? Why pay for a dorm when you could own an investment? Call me at 808-737-2093 or toll free at 877-737-2093 to see if this might meet your investment needs.

Note-please don’t rely on this information to make your investment decision. Make sure that you confirm the validity of the numbers contained in this analysis.

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Honolulu View Home for $5,300,000

May 21st, 2008 categories: Buying Honolulu Real Estate, Honolulu Real Estate 101, Views of Honolulu

Oh the value of a view. Over the years, I have noticed that a view brings an “X” factor to the sale of a property. An “X” factor is something that brings additional value to a sale. “X” factors may not be immediately measurable, yet they are real, and people are willing to pay more for a house with an “X” factor. A view is something that makes buyers willing to compromise on their initial needs, because the view brings an emotional aspect that they want and are willing to pay for. In the past, I have seen Buyers who have had very rigid buying standards become very flexible when presented with a terrific view! For Honolulu buyers, your quality of life will be better because there is something calming and serene about a great view. From an investment perspective, when you become a seller, you should be able to sell for significantly more than a non-view home.

For Honolulu sellers, expect to sell at a higher price than non-view homes. Be sure to market your view, as it is a significant and valuable feature.

Click on the youtube video above to see a terrific view from a $5,300,000 Diamond Head home.

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Honolulu Grass Shack $5,200,000

May 17th, 2008 categories: Buying Honolulu Real Estate, Views of Honolulu

Have you always wanted your own grass shack? Well here it is! For $5,200,000 you get the pool and a 5 bedrooms 5 and ½ bath house too. This home is located in Kahala and it is a whopping 5,832 square feet of living area. All of this and more rest on a 1/3 acre lot (15,669 square feet of land). Close your eyes and dream of relaxing in the pool with your beverage of choice.

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Can Honolulu’s Newest Safeway Change a Neighborhood?

May 13th, 2008 categories: Buying Honolulu Real Estate, Rants & Riffs

This past Mothers Day I had the chance to shop at the new Safeway on Kapahulu. As I drove to the convenient rooftop parking, I considered that this store is going to positively change the face of this desirable Honolulu neighborhood. Not only is this one of the nicest super markets I have seen anywhere, but it shows that Honolulu will patronize really high quality retailers. Every part of the store exudes excellence!

The deli is delightful. A bakery that will make your mouth water! How about a meat department that has everything you need. The produce department reminds me of Gelsons Super Market in California. Every fruit and vegetable looks like it is of the highest quality. Need sushi? Go to the sushi bar. How about a latte? Stop by the coffee bar. It is a good thing that there is an area to sit down and relax, because the store is so big that going up and down each aisle could be a work out for some. It is worth going to on a Friday evening to check it out and have dinner. Safeway is not the only tenant at this center.

Once it is completely full this mall will have many of the things that residents in this area had to go to other areas to find. Given the quality of this project, Read the rest of this entry »

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“X” Marks The Spot in Honolulu

May 2nd, 2008 categories: Buying Honolulu Real Estate, Honolulu Real Estate 101

Paragraphs C-41, C-42 and C-43 of the Purchase Contract (PC) have to do with surveying a the corners and/or perimeters of the lot. When the surveyor is complete with his work all of he corners should have pins or marks which locate the location of the particular corner. This marks take the form of a steel rod, nail, or an “X” in the appropriate spot. When you are buying make it a priority to walk the lot and inspect the location of each mark.

Be sure to take the written survey with you as it may reflect relevant walls, side walks, sheds or other improvements near the property line. Once you own the the home, it is a good idea to make sure that the corner markers can be maintained. You can do this by pouring a small amount of cement around steel bars or making sure that other corners are cleared and marked with paint. If the locations are preserved and, if you keep a copy of the written survey, you may be able to use the survey you received when you purchased when it is time to sell (this could save you $1000’s of dollars).

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