Best Buy Properties

There are three ways to determine if a property is a best buy:1.) Property that yields a positive cash flow with minimal down payment typical for the area.2.) Property asking price is substantially below like kind homes that have sold within the last six months.3.) Property that is a quality structure and highly sought after in neighborhoods where the inventory for sale is relatively nonexistent and are selling at or below market value.This week the focus will be on topic number 2.) Properties where the asking price is substantially below like homes that have sold within the last six months. According to the Honolulu Board of Realtors the average price of a single family home on Oahu has dropped 16.2%. While the average price for a condo on Oahu has dropped 11.1%. This means that condos that are in better than average condition and are selling below 11.1% may satisfy the best buy criteria. For example, take a condo, one bedroom, unit-3608, Villa on Eaton Square, 582 square feet. It sold for $330,000 in March of 2008, Compare that with unit-3607, Villa on Eaton Square, 681 square feet selling on the same floor today for $310,000. At first glance this only appears to be about a 6.5% drop in value, making it a so-so best buy. However upon closer examination when the difference in square footage is taken into account the picture improves dramatically. For example, the cost per square foot of the unit sold in the 2008 is $567.01. While the cost per square foot of the unit currently for sale is $455.21. This reflects a 24.6% drop in price over the one year period which now solidly meets the best buy criteria of being substantially below market value. There are not many units available for sale in this building and there is a strong possibility a value of this type will not last long. If you are interested in viewing this unit I can be reached on my cell 503 475 6872. Mahalo!