Archive for the 'Rants & Riffs' Category
Find The Opportunity!
November 18th, 2008 categories: Rants & Riffs
With all of the upheaval in the financial markets, it is very easy to get sucked down a funnel of negativity. In fact, I believe many people are so far down this vortex that there is no light at the end of the tunnel for them. This is based on the amount of misfortune chatter I hear at the gym, the store and amongst many public dialogues. I am here to say, “Stop It!”
The market is the market and there have always been and there always will be challenges to face. Commit to not letting these temporary issues change our attitude from can do to can’t do. I firmly believe that an attitude can determine the results one receives from life. Bad attitude, bad outcome. Good attitude, good outcome. This doesn’t mean we just sit and meditate about positive thoughts and ways of doing things. It means we go into the world with a positive expectancy, with an eye for finding opportunity! We find what we look for and, therefore, when we look for opportunity, we will find it.
There is no question that we live in interesting times. With the media and so many people buying into negativity and lack, those of us who can peer through the haze and see that there is light, options and possibilities will prosper. Resolve to be optimistic, to see that brighter days are ahead and that you can make a positive difference in your immediate world and thus the greater world as a whole. Be strong. Be optimistic. Be the difference maker. Be the light.
Nuff said!
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Door Opens For More Koreans To Come To Honolulu!
November 17th, 2008 categories: Rants & Riffs
Great news! The government has set up the Electronic System for Travel Authorization and this will allow Koreans to vacation in Honolulu and the rest of the U.S. with having to obtain a VISA. This will create a wider pipeline for tourists to from Korea to come to Hawaii and this means addition pressure on demand for our limited real estate supply.
“Visa-free travel for Koreans to the United States begins Monday, an unsnarling of bureaucracy that could double the number of Korean visitors to Hawaii.”
CLICK HERE TO READ THE PBN ARTICLE
Today’s vintage Honolulu home (the picture) can be found on Frank Street in Saint Louis Heights. Call me at 808-737-2093 or 877-737-2093 if I can help you with your real estate questions.
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Vintage Honolulu Home
November 14th, 2008 categories: Rants & Riffs
Malama Place in Manoa has some of the best examples of vintage homes on the island. It is a street with no outlet and there are many homes that are worth seeing. Today’s picture is of one of them. The home was on the market in 2001, for $695,000, and it was offered in very original condition. It sold in 14 days at a price of $700,000. I have not seen the interior, but based on the exterior appearance I will bet the home has had a major renovation.
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18 Traffic Lights To Ecstasy!
November 13th, 2008 categories: Honolulu Real Estate 101, Rants & Riffs
Hawaii Kai is generally considered one of the better Neighborhoods in Honolulu. I am in the process of helping a client move from Hawaii Kai into town (within 2 miles of Diamond Head). They made their move over this past weekend and, on Monday, I received a telephone call. It went something like this.
Phone rings…
Keahi answers, “Hello”.
Client says in a strong voice, “Dude, why didn’t you tell me!”
After a pause for reflection, Keahi responds, “Tell you what?”
Client in an ecstatic fashion expounds, “That it is so great living in town!”
He was pulling my leg and just wanted to share how easy it is to live in town. The funny thing is that as long as I can remember, I have been singing the accolades of the convenience of Honolulu town living to this client. What made the difference is that he was able to experience a 4-minute drive to work, rather than his normal 30 to 40 minutes. His kids and wife saw a similar reduction in the amount of time it took them to get to and from school.
If he was driving to and from Hawaii Kai 2 times a day, then he is spending an hour a day driving. Multiply this by 5 days a week and he is saving 20 hours a month or 240 hours per year not driving. Add to this the similar time that his family is saving and the move to town makes a great deal of sense.
What is the trade off? They are living in a smaller home. However, is it better to spend more time in your home or driving? Is it possible that physical workouts can now be done, family dinners and breakfasts can be had, and more general family time spent together? From my view, the quality of life that is gained far outweighs the smaller home. On top of this, at the end our phone call he said, “Do you know that there are 18 stop lights between Kahala and Hawaii Kai?” Think about it.
If you would like to discuss a similar move, feel free to call me at 737-2093 or 877-737-2093.
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A Huge Thank You to Veterans!
November 11th, 2008 categories: Rants & Riffs
I was wondering what to say to our Veterans for everything they do and have done to preserve our American way of life. Many people take all our freedoms for granted and that we will always enjoy them. Nothing could be farther from the truth! Generations of American warriors have served and died to assure the survival of the ideas that have made this Nation the best hope in a dangerous world. To current Veterans, to the families of Veterans that have not come home and to all of those that have served our Nation for over 230 years, I say “THANK YOU!”
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Obama, Capital Gains & Your Honolulu Real Estate!
November 7th, 2008 categories: Honolulu Real Estate 101, Rants & Riffs
Now that the smoke has settled from our recent Presidential election, it is time to start considering its impact Honolulu real estate sales. Our new President has a strong party majority in both houses of Congress and, therefore, it is reasonable to believe that he will initially have the ability to pass legislation that is favorable to his past beliefs. In March of this year, President Elect Obama was quoted in the New York Post saying the following.
“I haven’t given a firm number,” Obama told CNBC’s Maria Bartiromo, speaking of how much the levy would rise over the current rate of 15 percent. He “guessed” it would be “significantly lower than” the 28 percent it was under President Bill Clinton.”
CLICK HERE TO READ THE ARTICLE
So how does this impact long-term owners of highly appreciated Honolulu real estate? It may not happen, but, if I were a betting man, I believe it is safe to say that the long-term capital gains rates will be going up! If you are planning on selling your property within the next year and part of the plan includes cashing out (not deferring the capital gains through a 1031 Exchange or Installment Sale), then you may want to get your property sold sooner rather than later. By selling sooner, you do two things.
Punahou President's home
1. You GROSS more money. I believe values in the short term will incrementally drop. If I am right, you will get a higher price in the next 3 months, than if you wait six to nine months.
2. You NET more money. Assuming that you sell before the capital gains rate is changed, then your sale would be taxed at a Federal capital gains rate of 15 percent. This means that for every $100,000 in long-term gain you would pay $15,000 toward capital gains taxes. If the rate were changed to 28 percent, then you would pay $28,000 in long-term Federal capital gains taxes. This is a difference of $13,000 per $100,000! Since most owners of Honolulu houses and condos have significantly more than $100,000 in gain a shift like this would milk a great deal of money out of your wallet! The wild card would be if Congress decides to make the law change retroactive! No one can predict what date they would use to make any new law effective, but you have to know it could happen.
I report this to give you the heads-up. If you would like to discuss an outright sale or a IRC Section 1031 Tax Deferred Exchange, feel free to call me at 808-737-2093 or toll free at 877-737-2093.
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A Call For Unity!
November 5th, 2008 categories: Rants & Riffs
Congratulations to Barack Obama! It was a hard fought election season and our new President deserves all of our support. He is our standard bearer and will need all of our best wishes and prayers to confront the issues facing the United States of America. I am sure he will do his best!
On a final note, it will be nice to have this election finished. We can all get back to work and begin doing the things that will lead our economy to settling down and, ultimately, growing.
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Winter Strikes Honolulu!
November 3rd, 2008 categories: Rants & Riffs
This post is probably going to be more interesting for my mainland readers. I noticed last night that temperatures at my house had plunged to the low 70’s! I don’t know if a cold front hit or if it was the rain, but I can tell you there was a bite in the air. Putting a light blanket on the bed makes for great sleeping on frigid nights. Given that it will remain “chilly” February or March, I am sure that I will soon tire of these cold temps and hope for the return of high 70’s to mid-80’s of spring and summer.
For the meantime, it is always fun to consider wearing a sweater or something more akin to winter. Lucky I live Hawaii!
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Real Estate Myths Busted!
October 28th, 2008 categories: Rants & Riffs
Frontdoor.com is a very interesting Internet site. It has excellent tips for buyers and sellers of condos and home. One of its recent posts talks about the “10 Real Estate Market Myths”. In a world awash in negativity, it is nice to hear some positive clarity. The first myth they debunked is below.
“Peak-to-trough home price declines to date have been about 20 percent. Wrong. Measurements of home price declines can be skewed depending on which homes in which markets are being measured. For instance, the Case-Shiller Index, which indicates that home prices are down 20 percent, is heavily skewed towards homes with subprime loans and other distressed home sales. These troubled homes have experienced a steeper decline than home prices in general, says Yun, adding that both government data based on loans backed by Fannie Mae and Freddie Mac and data from the National Association of Realtors suggest much more modest price declines. TIP: If you’re selling your home, the best thing to do is price your home right.”
CLICK HERE TO READ THE ENTIRE POST.
To find out the truth about Honolulu homes and condos, call me at 808-737-2093 or toll free at 877-737-2093.
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Buffett Sees Buffet!
October 27th, 2008 categories: Rants & Riffs
One of the richest men in the U.S., Warren Buffett, sees a great deal of opportunity in our stock market. A Bloomberg.com article says the following.
“Warren Buffett said he’s buying U.S. stocks and, if prices stay attractive, his personal investments, as distinct from his stake in Berkshire Hathaway Inc., will soon be wholly in American equities.
Writing in the New York Times, he said he’s following the principle: be fearful when others are greedy, and greedy when others are fearful.
Exaggerated concern about the long-term prosperity of the many sound U.S. companies is foolish, and most will probably be setting profit records in years to come, Buffett said.”
CLICK HERE TO READ THE ARTICLE
I am similarly bullish on core Honolulu real estate and here is why.
1. Low interest rates-with the Fed injecting a great deal of money into the economy, I believe we will have low interest rates in the short to mid-term. This means, when confidence returns, buyers will be able to buy with very low monthly payments.
2. Demand-even with all that has occurred in the financial markets, my sense is that buyers are tentative, but they still want to buy because living in Honolulu is so desirable.
3. Low supply-though supply is up some, in comparison to historic numbers, it is at a moderate level. This means that our market could turn very quickly.
4. Hawaii-this is Hawaii…need I say more. Our appeal to those who do not live here is strong. A newly minted prosperity happens around the world, in the past, those nouvelle riche will want to own in paradise.
Since values are flat and may be moving incrementally down and there is a good selection of inventory, I believe this is an opportune time to buy. Call me at 808-737-2093 (toll free 877-737-2093) to discuss taking advantage of this market.
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